More Canadians Missing Non-Mortgage Debt Payments Amid Economic Squeeze
Equifax Canada’s latest report reveals a troubling uptick in financial strain, with the 90-day delinquency rate for non-mortgage debts climbing 14 per cent year-over-year to 1.63 per cent in the third quarter of 2025. As total consumer debt hits $2.62 trillion, households are grappling with inflation and high interest rates, turning increasingly to credit cards for essentials. This marks a shift from mortgage-focused worries, spotlighting everyday borrowing pressures.
Delinquency Surge: Credit Cards Bear the Brunt
The Equifax data, released November 26, underscores a 14 per cent rise in missed non-mortgage payments compared to Q3 2024, with credit card delinquencies leading the charge. Canadians are leaning harder on revolving credit amid stagnant wages and elevated living costs, experts note. “Persistent inflation is forcing tough choices,” said an Equifax spokesperson, highlighting how everyday items like groceries and utilities are tipping balances.
While the rate remains below historical highs, the trend signals broader vulnerability, especially as the Bank of Canada holds rates steady.
Debt Levels Climb: $2.62 Trillion Total and Rising
Overall consumer indebtedness reached $2.62 trillion in Q3, a 3.4 per cent increase from last year, per Equifax. Non-mortgage debt alone averaged $22,321 per consumer—up $511 year-over-year—spanning auto loans, lines of credit, and personal loans.
This growth outpaces income gains, with younger borrowers (under 35) showing the sharpest delinquency spikes due to entry-level job instability and student debt carryover. Regional variations persist: Atlantic provinces report higher rates tied to seasonal employment dips.
Key Metrics at a Glance
- Delinquency Rate: 1.63% for 90+ day non-mortgage balances (up 14% YoY).
- Total Debt: $2.62 trillion (up 3.4% YoY).
- Average Non-Mortgage Debt: $22,321 per consumer (up $511 YoY).
- High-Risk Borrowers: 24% of consumers now classified as such, up from 22.5% last year.
- Credit Card Share: Accounts for 45% of new delinquencies.
These figures, drawn from Equifax’s national credit file analysis, reflect over 30 million consumers.
Economic Pressures Fueling the Trend
High interest rates—hovering around 5% for prime lending—compound the issue, with minimum payments eating into disposable income. Inflation, though cooling to 2.1 per cent in October, has left cumulative scars: food prices up 20 per cent since 2022, per Statistics Canada.
Experts link the rise to post-pandemic habits, where emergency savings depleted faster than expected. “We’re seeing a return to pre-COVID borrowing patterns, but with less buffer,” noted a BNN Bloomberg analyst. Unemployment at 6.5 per cent exacerbates risks for gig workers and recent graduates.
Implications for Households and Lenders
For consumers, this signals a need for budgeting tools and debt consolidation options, with non-profits like Credit Counselling Canada reporting a 20 per cent call volume increase. Lenders face higher provisioning costs, potentially tightening credit access and slowing economic momentum.
Policymakers may eye relief measures, though fiscal constraints limit scope. On X, users vent frustration: “Can’t keep up with basics anymore,” one Toronto resident posted, echoing widespread sentiment.
Equifax’s Q3 findings paint a cautionary picture of household finances under duress, with non-mortgage delinquencies signaling deeper affordability woes. As debt swells and rates linger high, proactive financial planning becomes essential to avert a broader credit crunch. Canadians may yet weather this, but the margin for error is thinning.
For the full Equifax report, visit BNN Bloomberg. Track public reactions on X via Equifax Canada’s account.