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

Subsea fibre optics running from Prince Rupert to Haida Gwaii and and then south to Vancouver will improve high-speed internet connection options for Coastal Communities, CityWest said on Oct. 13.
Subsea fibre optics running from north of Prince Rupert to Haida Gwaii and and then south to Vancouver will improve high-speed internet connection options for Coastal communities, CityWest said on Oct. 13. (Black Press Media)
CityWest to refresh subsea fibre optics project

Fibre optics project to run cable from north of Prince Rupert to Haida Gwaii then south to Vancouver

FILE - Nathan Cullen speaks to media in Smithers, B.C., Friday, February 28, 2020. THE CANADIAN PRESS/Jonathan Hayward
More calls come in for Cullen’s removal as NDP candidate

Gitxsan Hereditary Chiefs demand Cullen’s removal. Ellis says, There’s no place in B.C. for racism

Kelly Lynn Whitney has been acclaimed as the successful candidate on Oct. 16, in the Village of Port Clements by Election. Seen in photos Kelly Whitney-Gould is pictured putting finishing touches on “Ms. Gnomer’s Home 4 Wayward Folk.” (Kelly Whitney-Gould/Submitted photo)
Kelly Lynn Whitney acclaimed in By Election

Village of Port Clements By Election success

BC Liberal Party candidate for the North Coast Roy Jones Jr. will hold virtual face-to-face meetings for North Coast communities on Oct. 18. (Photo: K-J Millar/The Northern View)
BC Liberal Candidate Roy Jones Jr, will meet constituents virtually

Face to face conversations will be held on Oct. 18 for North Coast communities

B.C. provincial health officer Dr. Bonnie Henry gives a daily briefing on COVID-19 cases at an almost empty B.C. Legislature press theatre in Victoria, B.C., on March 25, 2020. (Don Craig/B.C. government)
B.C. sees 223 new COVID-19 cases, now 2,009 active

Two new care home outbreaks in Surrey, Burnaby

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
B.C. driver thought he retrieved a dead bald eagle – until it came to life in his backseat

The driver believed the bird to be dead and not unconscious as it turned out to be

Chastity Davis-Alphonse took the time to vote on Oct. 21. B.C’s general Election Day is Saturday, Oct. 24. (Chastity Davis-Alphonse Facebook photo)
B.C. reconciliation advocate encourages Indigenous women to vote in provincial election

Through the power of voice and education Chastity Davis-Alphonse is hopeful for change

White Rock RCMP Staff Sgt. Kale Pauls has released a report on mental health and policing in the city. (File photos)
White Rock’s top cop wants to bill local health authority for lengthy mental-health calls

‘Suggestion’ included in nine-page review calling for ‘robust’ support for healthcare-led response

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

RCMP stock photo (Black Press)
Charges laid against Prince George man, 39, in drug trafficking probe

Tyler Aaron Gelowitz is scheduled to appear in court Nov. 18

Green party Leader Sonia Furstenau arrives to announce her party’s election platform in New Westminster, B.C., on October 14, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green party says it’s raised nearly $835,000 in 38 days

NDP Leader John Horgan is holding his final virtual campaign event

Most Read