Creditcard Canada posted Canada’s credit card / debit card and debt statistics last week. The outlook shows bankruptcy is down but consumer proposals are up since the last statistics from 2012. Credit cards are the major source of unsecured debt for Canadians and credit card delinquency rates are showing a downward curve over the last two years.
The average unsecured debt is $61,096 per consumer insolvency (bankruptcy or proposal). Credit cards represent the largest category of non-mortgage insolvency debt from 2011 to 2012, with an average debt of $23,741 on an average 3.9 cards per insolvency.
As per results shown in Creditcards.com Canadian report:
Bankruptcy
Consumer bankruptcy filings in 2013: 69,224 — down 3.2% from 71,495 in 2012.
Business bankruptcy filings in 2013: 3,187 — down 1.5% from 3,236 in 2012.
Consumer proposals to avoid bankruptcy in 2013: 49,454 — up 5.4% from 46,903 in 2012.
Card ownership
Canadian adult credit card holders carrying cards without an annual fee: 75% in 2013, down from 80% in 2010.
Canadian adult credit card holders carrying annual-fee cards: 45% in 2013, relatively unchanged from 2010.
Canadian adults with at least one credit card in 2012: more than 91%.
Average number of credit cards per Canadian adult: 2.9 in 2013 (including Visa, MasterCard and American Express).
Debt (credit card, total consumer)
Total consumer debt in Canada (including mortgages) at Nov. 30, 2014: $1.810 trillion up 4.5% from 2013.
Credit card debt as of Nov. 30, 2014: $75 billion (4.1% of total consumer debt) up 2.9% from 2013.
Average credit card debt as of Nov. 30, 2014: $2,627 for each Canadian age 18 or over.
Average consumer debt (including mortgages) as of Nov. 30, 2014: $63,156 for each Canadian age 18 or over.
Ratio of household credit market debt to disposable income: 162.6% at third quarter 2014, compared to 131.96% for same quarter in 2006.
Delinquency
Debt delinquency rate (90 days or more) excluding mortgages: 1.10% for third-quarter 2014 — lowest since 2008.
National credit card debt delinquency rate in fourth-quarter 2013: 0.24% down 19.9% from 2012.
Provinces with highest credit card delinquency rates in fourth-quarter 2013: Prince Edward Island (0.48%), New Brunswick (0.41%) and Nova Scotia (0.36%).
Provinces with lowest credit card delinquency rates in fourth-quarter 2013: Saskatchewan (0.20%), Quebec (0.21%) and British Columbia (0.23%).
Credit Card debt
Canadian credit card debt: 5.5% of total household debt in December 2013.
52% of Canadian households had credit card debt in 2014, down from 56% in 2013.
60% of Atlantic-province households had credit card debt in 2014 compared to 45% in Manitoba and Saskatchewan.
According to a 2013 Abacus Data survey, 70% of Canadians claimed to repay their monthly card balances in full while 55% of those carrying balances said they pay much more than the minimum requirement.
While this report does not show results from consumers seeking debt help from private debt relief firms;
OCCA Consumer Debt Relief has helped over 12,560 families since we opened in 2002, saving our members at total of over $241,000,000 in debt payments.
We offer a tailored debt relief program that is geared to get you out of debt quickly and efficiently so you can get back on track with your finances. Give us a call to speak with one of our expert counselors about our debt relief program. We’re here to help!
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