Canada’s latest consumer debt numbers should worry all of us not just economists. Equifax Canada’s new report shows that the number of people missing payments on non-mortgage debt is rising again, and the trend reveals something deeper than just a temporary financial hiccup.
The 90-day non-mortgage delinquency rate climbed to 1.63% in Q3, a jump of 14% compared to the same period last year. On the surface, that percentage might seem small. But behind every fraction is a real person someone falling behind on credit cards, car loans, or personal loans, often because their paycheque simply isn’t keeping up with the cost of living.
Consumer debt in Canada has now ballooned to $2.62 trillion, up 3.4% in just one year. Even the average non-mortgage debt per person has risen to $22,321, which is $511 more than last year. When people owe more, and pay more interest at today’s rates, the margin for error becomes painfully thin.
Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, pointed out that earlier in the year there were “tentative signs of stabilization.” But the latest numbers show renewed financial stress especially among younger Canadians and homeowners in big cities. It’s not hard to understand why: high rents, rising grocery bills, and mortgage renewals with punishing interest rates have pushed many budgets to the breaking point.
And things might get worse before they get better. Credit card spending nearly always spikes during the holiday season. For families already stretched to the limit, the next few weeks could be the moment where debt turns from a burden into a crisis.
This is not just a story about missed payments. It’s a story about a financial system and an economic reality that is squeezing people harder than ever. If policymakers and institutions continue to treat rising debt as just another statistic, they risk overlooking the growing number of Canadians quietly slipping into financial instability.
The warning signs are flashing. The question now is whether anyone is paying attention.
