Canadian Consumers Taking On Much Less Debt

The average consumer’s total debt in Canada only rose $69 to $26,029 in the last quarter. This comes after a slowing debt growth for the last five quarters, and on the advice of the government that interest rates may soon be rising.

Auto loans, however, are on the rise. In a report by TransUnion, auto loans rose more than $2,000 to $18, 212 in the first quarter of 2012. Delinquencies are currently at their lowest level in about two years. This information could be good news since increases in auto loan debt usually means that consumers are purchasing vehicles and are managing their debt because they are able to qualify for a loan.

The report also shows that delinquency rates are low for all types of loans. This is a positive for the Canadian economy. It shows consumers are keeping their accounts in good standing and paying down their balances.