{"id":60197,"date":"2025-05-28T12:00:17","date_gmt":"2025-05-28T12:00:17","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/05\/28\/posthaste-canadians-are-missing-credit-payments-at-rates-not-seen-since-the-financial-crisis\/"},"modified":"2025-05-28T12:00:17","modified_gmt":"2025-05-28T12:00:17","slug":"posthaste-canadians-are-missing-credit-payments-at-rates-not-seen-since-the-financial-crisis","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/05\/28\/posthaste-canadians-are-missing-credit-payments-at-rates-not-seen-since-the-financial-crisis\/","title":{"rendered":"Posthaste: Canadians are missing credit payments at rates not seen since the financial crisis"},"content":{"rendered":"<p> \n<br \/><br \/>\n<iframe loading=\"lazy\" height=\"100%\" src=\"https:\/\/cdn.jwplayer.com\/videos\/NQiAat3n.mp4\" width=\"100%\"><\/iframe><br \/>\n<img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg\" title=\"\" \/><\/p>\n<p> The growing economic uncertainty is forcing Canadians to miss their <\/p>\n<p>                credit card payments<\/p>\n<p>                 at rates not seen since the financial crisis. <\/p>\n<p> The average Canadian owes $21,859 in non-mortgage debt in the face of higher prices and a strong auto loan market, according to a new report by Equifax Inc. <\/p>\n<p> Demand for non-mortgage debt has slowed down in recent quarters, but balances have remained flat, which Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, believes is a sign that paying down existing debt has been a challenge. <\/p>\n<p> \u201cOur data shows card payment levels, especially for younger consumers, are starting to fall, indicating this spending slowdown is likely driven more by consumers trying to be prudent rather than switching from credit to debit for financing,\u201d she said in a news release. <\/p>\n<p> Oakes called the reduced credit card usage in the first quarter a \u201cpositive shift,\u201d but said there could be more challenges ahead. <\/p>\n<p> \u201cHeadwinds will likely persist, such as rising unemployment and rising food prices, in already strained regions,\u201d she said. <\/p>\n<p> The average pay rate dropped 32 basis points to 52.9 per cent in the quarter, with 1.4 million Canadians missing a credit card payment. <\/p>\n<p> \u201cAlthough mortgage holders experienced some stabilization thanks to steady <\/p>\n<p>                interest rates<\/p>\n<p>                , financial strain remained acute for non-mortgage consumers,\u201d the report said. \u201cConsumer-level delinquency rates among non-mortgage holders rose 8.9 per cent year over year, compared to 6.5 per cent for mortgage holders.\u201d <\/p>\n<p> Another <\/p>\n<p>                report by TransUnion of Canada Inc.<\/p>\n<p>                 said Canadians who are considered a high risk of defaulting on credit card payments are more vulnerable than ever. Canadians in this demographic who opened a credit card during the past two years were twice as likely to become delinquent in the first 12 months of opening the card. <\/p>\n<p> TransUnion said Albertans are most likely to default on credit repayments, with a non-mortgage delinquency rate of 2.35 per cent. It said the volatility in Alberta\u2019s oil and gas sector plays a role in the high delinquency rate. <\/p>\n<p> Canada\u2019s big banks are preparing for an uptick of bankruptcies. On Tuesday, <\/p>\n<p>                Bank of Nova Scotia<\/p>\n<p>                 said it had increased the money it sets aside for bad loans \u2014 known as provisions for credit losses (PCLs) \u2014 to $1.39 billion. Toronto-Dominion Bank last week said it had increased its PCLs to $1.3 billion. <\/p>\n<hr \/>\n<p> <em><strong>\u00a0Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n<hr \/>\n<p> <strong><br \/> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758646\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/05\/Canada-Banks-Build-Credit-Buffers-Provisions-for-possible-losses-on-performing-loans-climb-sharply.jpg\" title=\"\"><\/p>\n<p> As Canada\u2019s big banks report quarterly earnings this week, early signs show they are not optimistic about the state of the economy. <\/p>\n<p> Both Scotiabank and Toronto-Dominion Bank have upped their provisions for credit losses (PCLs), a typical sign that banks are bracing for delinquent payments or bankruptcies. <\/p>\n<p> Scotiabank<\/p>\n<p>                 increased its PCLs to $1.39 billion, while TD hiked PCLs to $1.3 billion. <\/p>\n<p> The Bank of Montreal is scheduled to release its earnings on Wednesday. <\/p>\n<p> Read more here.\u00a0 <\/p>\n<hr \/>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758643\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_breaking.png\" width=\"838\" \/> <\/p>\n<ul>\n<li>OPEC Joint Ministerial Monitoring Committee meeting<\/li>\n<li>U.S. Federal Reserve\u2019s FOMC minutes from May 7 interest rate decision<\/li>\n<li><strong>Earnings: <\/strong>NVIDIA Corp., Salesforce Inc., Bank Of Montreal, HP Inc., U-Haul Holding Co., Abercrombie &#038; Fitch Co., Universal Corp.<\/li>\n<\/ul>\n<hr \/>\n<p> <strong><br \/> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080180\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_marketsam.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\" Financial Post\" data-has-syndication-rights=\"1\" data-license-id=\"3857558\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/05\/chart-0528-ph.jpg\" title=\" Financial Post\"><\/p>\n<figure class=\"embedded-image\"><\/figure>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080181\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<ul>\n<li>Scotiabank posts lower profit amid uncertainty related to U.S. tariffs<\/li>\n<li>Pivotal pipeline decision looms to determine fate of Canada\u2019s next big LNG terminal<\/li>\n<li>The tax hit to Canadians from Trump\u2019s \u2018big beautiful\u2019 bill could be tremendous<\/li>\n<li>OECD predicts Canadian economy will avoid recession, but will see flat growth in 2025<\/li>\n<\/ul>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-2059284\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\" \/> <\/p>\n<p> For those looking to gift money to young ones for education with a fully topped up Registered Education Savings Plan (RESP), a contribution to a registered retirement savings plan (RRSP) could be an option, though taxes must be paid on their withdrawal. Testamentary trusts are also an option, though they require accounting and legal fees. <\/p>\n<p>                Read more here.\u00a0 <\/p>\n<hr \/>\n<div class=\"x_elementToProof\"><span>Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at\u00a0<\/span>wealth@postmedia.com<span><\/span><span>\u00a0with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n<hr \/>\n<h2>McLister on mortgages<\/h2>\n<p> Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s <\/p>\n<p>                Financial Post column <\/p>\n<p>                can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his <\/p>\n<p>                mortgage rate page<\/p>\n<p>                 for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n<hr \/>\n<h2>Financial Post on YouTube<\/h2>\n<p> Visit the Financial Post\u2019s <\/p>\n<p>                YouTube channel<\/p>\n<p>                 for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n<hr \/>\n<p> <em>Today\u2019s Posthaste was written by Ben Cousins\u00a0with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.<\/em> <\/p>\n<p> Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at\u00a0<\/p>\n<p>                posthaste@postmedia.com<\/p>\n<p>                . <\/p>\n<hr \/>\n<ul class=\"related_links\">\n<li>Burning your mortgage is going the way of rotary phones and station wagons<\/li>\n<li>High down payments keep Canadians out of homeownership<\/li>\n<\/ul>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com\u00a0to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n<p><\/img><\/img><br \/>\n<br \/>\n<br \/>Posthaste: Canadians are missing credit payments at rates not seen since the financial crisis<\/a><br \/>\n<br \/>2025-05-28 12:00:17<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The growing economic uncertainty is forcing Canadians to miss their credit card payments at rates not seen since the financial crisis. The average Canadian owes $21,859 in non-mortgage debt in&#8230;<\/p>\n","protected":false},"author":2,"featured_media":60198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-60197","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/60197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=60197"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/60197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/60198"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=60197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=60197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=60197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}