Equifax Canada Reports Two-Year High in Consumer Insolvency Levels

During the second quarter of 2022, consumer insolvency rose to its highest level since the start of the pandemic, according to Equifax Canada, MPAMag.com reported. Consumer proposals went up by 20.7% annually in Q2, accounting for approximately 76% of all insolvencies in Canada. Delinquency rates in 90 day+ accounts also had a 4% increase, Equifax said. “However, large growth in overall non-mortgage debt combined with a fall in the average balance of delinquent accounts masked some of the emerging financial stress with 90 day+ balance delinquency rates still remaining below pre-COVID levels and showing a fall compared to the prior year,” Equifax said. Households were further buoyed by financial relief programs seen over the past two years. “The good news is that government and lender support during 2020 and 2021 led to overall reductions in debt levels,” said Rebecca Oakes, vice president of advanced analytics at Equifax Canada. Read more.