Credit reporting agency TransUnion recently released data showing that Vancouver residents have the highest debts among those who are in major cities, owing an average of $38,753 in non-mortgage, consumer debt through the first quarter of 2018. This is an increase from the fourth quarter of 2017, where residents owed an average of $38,688, according to Global News.
On a yearly basis, increasing debt was observed across the country, but it rose considerably faster in Vancouver, jumping by 7.02% (coming after Toronto which has a surge rate of 7.12%). Additionally, debt fell in every city on a month to month basis – except for Vancouver, where debt grew by 0.17%
In fact, Calgary, which was in the running to be Canada’s most indebted city, has dropped their average non-mortgage debt load and maintains this trend monthly.
One of the reasons behind Vancouver's increasing debts is the growing economy of its province, British Columbia. Second, non-mortgage debt can be related to home expenses in the city. "We see the potential for a lot of people to be taking out equity loans against their homes to do renovations or debt consolidation,” shared Matt Fabian, TransUnion’s director of research and analysis.
TransUnion pointed out that, while the city’s debt level is high, Vancouverites do not seem to have any trouble paying their bills. Vancouver has the second lowest delinquency rate among major cities, recorded at 4.67% for payments that are past due by 90 days or more. The city having the worst time paying back loans on time? Edmonton, with 7.21% payments past due for 90 days and rising.
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