On The Rise: The Canadian credit market makes a comeback

Current trends show that the Canadian credit card market is steadily making its way to the top. In the wake of the most recent financial recession, studies show that Canadians exhibit an ingenious resiliency in handling their credit accounts, as opposed to many other countries struggling to get out of debt.

According to credit rating agency TransUnion Canada, there are presently four key signs that show marked improvements in the Canadian population’s credit accounts.

First off, experts note a diminishing credit population. Reports show that Canada’s credit market is currently quite active with an average of 24.8 consumers, a big 15 % up from previous years’ ratings. TransUnion Canada predicts that this number will shrink as older individuals leave the credit arena, but finances will improve as younger Canadians move steadily into the credit card world of finances.

Second, analysts are noticing an increase in single-digit debt and a corresponding decrease in double-digit debt among Canadians. Also, debts in the average Canadian household have no significant growth at present, in fact, the pace of debts has slowed considerably in recent years.

Third is a marked decline in delinquencies, or failure to pay off credit card debt. By late 2010, credit delinquencies took a remarkable setback, with a delinquency ratio of 0.34, compared to an earlier ratio of 7.8. Experts interpret this as an indication that Canadians are taking charge of their credit accounts following the recession. In addition, recent surveys show that an unexpected 60 % of Canadians pay off their credit card balances promptly.

Fourth, TransUnion Canada reports a drop in due balances. Due balance is essentially a debt that is thirty days past its supposed date of payment. Statistics show a 15 % decrease after three years of steadily increasing due balances. This is an indicator of improved financial awareness and knowledge of the credit
market’s ins and outs among Canadians.

TransUnion Canada remains positive about these four key signs, and the resulting projection of financial wellness in the Canadian populace. As the global recession fades into the background, the Canadian credit card market continues to move steadily forward.