Canadians paying down debt faster, Equifax says
Canadians are paying off their debts faster, with the number of those more than three months behind on loan payments dropping to a record low, according to a report Thursday from Equifax Canada.
The results of a recent survey conducted by Equifax Canada, one of the major credit reporting firms, show that in the final quarter of 2012, the percentage of unpaid non-mortgage debt has decreased to 1.19% from the previous quarter's result of 1.22%.
Among other factors, the introduction of new mortgage legislation this summer has contributed to an increase of debt-awareness among Canadians in general. A client's credit history has become more important than ever when applying for a mortgage or personal loan, so many seem to be keeping a closer eye on their debt. The recent study shows that fewer Canadians applied for loans in the fourth quarter of 2013, but instead opted for utilizing the credit they already have access to.
Recent reports have shown that the majority of Canadians have cited debt reduction as their main focus for 2013. Nadim Abdo, Equifax's vice-president of consulting solutions says, "People are (being) financially responsible. They have the facilities and they're just using them, versus just going crazy and getting those 25 credit cards like we used to back in the heyday".