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The debt load grows for residents of Newfoundland and Labrador

EQUIFAX CANADA says delinquency rates on loans have grown in Newfoundland and Labrador in the past year.

In a recent report looking at consumer credit trends in Canada, Equifax Canada found the delinquency rate in Newfoundland and Labrador (payments overdue for more than 90 days) on loans excluding mortgages was up 5.8 per cent in the third quarter of 2015 compared to the same period in 2014. In the other East Coast provinces (New Brunswick, Prince Edward Island and Nova Scotia), delinquency rates during that period went down. Newfoundlanders and Labradorians also had the highest average consumer debt load in Atlantic Canada at $22,360 (it’s $21,059 in P.E.I., $21,779 in New Brunswick and $21,334 in Nova Scotia).

Consumer debt includes credit card debt, lines of credit, installment loans and car loans. Regina Malina, Equifax Canada’s senior director of decision insights, says these trends are not welcome ones for Newfoundland and Labrador. She believes, however, that if consumers are aware of them, it can help them take steps to change their spending habits before the problems get worse and have a serious impact on the provincial economy. “Increasing consumer debt is not always a concern by itself. But when it’s married with other factors, like increased unemployment, then it is concerning,” Malina says. “That can negatively impact businesses and consumer confidence.”