Consumer debt in Saskatchewan is on the rise but many people are still behind on payments, according to a new report.
TransUnion Industry Insights Summary shows the average non-mortgage debt balance per borrower in Saskatchewan rose by $444 year-over-year. That’s an increase of 1.85 per cent but lower than the national average of 2.66 per cent.
Non-mortgage debt includes things like auto loans, lines of credit and credit cards.
Among five provinces surveyed, Saskatchewan has the highest 90-day delinquency rate at 3.37 per cent. More than Alberta (3.14 per cent), British Columbia (2.6 per cent), Ontario (2.58 per cent) and Quebec (2.11 per cent). The report says the 90-day delinquency rate in Saskatchewan did fall slightly by 0.01 per cent year-over-year.
TransUnion said credit card demand continued to decline with fewer people having access to a credit card this year across Canada.
“The slowing pace of credit card acquisitions is a key contributor to the net decline in consumer access,” Matt Fabian, director of research and industry analysis for TransUnion Canada said in the report. “This may be attributable to market saturation after years of growth and greater access to credit among consumers at all risk levels, at least in the prime credit risk ranges.”
He also said despite the drop in credit card originations and access, consumers are continuing to use the cards they have. Lenders continue to increase limits to existing customers, which is helping consumers meet their demand for higher borrowing levels. In light of continued controlled levels of card delinquency, the strategy of increasing card credit limits appears to be effective, according to Fabian.
