Taking on more credit card debt has not been the pandemic plan for many Canadians, data from TransUnion Canada suggested on Tuesday. Credit cards are displayed in Montreal, Wednesday, December 12, 2012. THE CANADIAN PRESS/Ryan Remiorz

Canadians taking steps to avoid credit card debt, despite economic pressure

People are opting to dip into savings or retirement funds rather than relying on credit cards

TransUnion Canada says data show Canadians have not taken on additional credit card debt during the COVID-19 pandemic.

The credit reporting agency says in a quarterly report that credit card balances fell 12.3 per cent in the second quarter compared with the same period a year ago.

TransUnion’s Matt Fabian says reduced opportunities for spending during the lockdown may have contributed to the drop, but he also noted that people are opting to dip into savings or retirement funds rather than relying on credit cards.

Applications for new credit also grew at a slower-than-usual pace, amid reduced access to branches during the lockdown, uncertainty around employment and a pullback on new offers from lenders.

But TransUnion says mortgage debt is on the rise, with new mortgages, renewals and refinances up 29 per cent from a year ago and a 5.3 per cent annual increase in the total volume of mortgage debt.

Despite a 4.3 per cent rise in total outstanding debt in Canada, which stood at $1.9 trillion in the second quarter, Fabian says delinquencies have risen less than expected, as about 2.6 million Canadians, or 9.2 per cent of credit consumers, have at least one active deferral.

TransUnion uses the credit bureaus’ national consumer credit database as source material for its quarterly report.

The Canadian Press

CoronavirusDebtFinance

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Horgan lambasting Liberal health record in Surrey

Premier John Horgan is in Surrey this morning to attack Liberal Leader Andrew Wilkinson’s role in selling a potential hospital site here at a discount

First rainstorm of the season pelting the Lower Mainland

Batten down the hatches as heavy rains, wind, and some localized flooding possible

‘The fix was in’: BC Liberals in Surrey-White Rock call out own party

Party members say there was no intention to have fair nomination process

Face masks to be mandatory at all Delta facilities Oct. 1

Masks will be mandatory when entering, exiting and moving around all common areas

Horgan’s election call ‘nakedly opportunistic,’ political scientist says

Premier says campaign will ‘fully comply’ with public health directions

B.C. reports 96 new COVID-19 cases, one hospital outbreak

61 people in hospital as summer ends with election

RCMP investigating man reportedly hiking nude on Summerland’s Full Frontal trail

Potential charges against the man could include indecent exposure.

Grand jury indicts police officer in Breonna Taylor death

Officer Brett Hankison was charged with three counts of wanton endangerment

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

Attorney General of Canada defends Kelowna Mountie involved in rough arrest

Tyler Russell filed a lawsuit against Const. Siggy Pietrzak in June of this year

Refresh of Liberal government’s agenda comes amid new looming COVID-19 crisis

Lockdowns saw fed spending soar to historic levels in effort to offset pandemic’s blow to Canadians’ livelihoods

Most Read