On a positive note, Canadians appear to be better able to manage their debt with the delinquency rate – bills more than 90 days overdue – down to a record low of 1.13 per cent in the three months ended Sept. 20. This is down 1.22 per cent from the same time last year.
According to Yih, tackling debt takes more than meeting bill payments or curbing spending habits.
“You’ve got to get to the root of what caused (the debt) in the first place,” advises Yih. “If you spend more than you make, how do you deal with that? You either spend less or earn more. There’s no magic to this. It’s a numbers game.”
Equifax Canada considers consumer credit history based on national credit cards, loans and mortgages from 24-million files for its quarterly reports.