Just in time for the holidays, a new report from Equifax Canada shows Canadian consumer debt climbed to $1.702 trillion by the end of the third quarter -- about the same as Australia’s gross domestic product last year.
The credit reporting agency blames low interest rates and falling oil prices for the rise from $1.587 trillion a year earlier.
Equifax says the average Canadian’s consumer debt load, which excludes mortgages, increased by 3.6 per cent to $22,081 in the three months ending Sept. 30, compared to the same period a year earlier.
Those living in provinces hardest hit by waning energy prices like Alberta, Saskatchewan and Newfoundland are borrowing more to get by, and finding it increasingly difficult to keep up with credit payments, according to the report.
The average consumer debt among Albertans topped $27,956. Saskatchewan residents were close behind at $24,574 on average. Ontario and Quebec were found to have the lowest debt levels in the country.
The report also found the number of Canadians more than 90 days in behind servicing their debt grew to 1.14 per cent from 1.05 per cent during the same year-over-year period.
Debt relief specialist Jennifer Croft tells CTV News many Canadians choose to avoid the touchy subject of consumer debt with friends and family.
“We have pride. A lot of people don’t want to expose themselves to families and friends, letting them know ‘Hey, I’m struggling.’ That’s a very, very difficult thing to say,” she said.
Others are less bashful about their finances. Geoff Westlock decided to tackle his more than $42,000 debt by living in a trailer for the past two-and-a-half years, changing parking spots twice a day to avoid tickets.
“You don’t have to be in a trailer to do this,” said Westlock. “You just have to downgrade your lifestyle temporarily to upgrade your finances.”
The warehouse worker hopes to be debt free in 11 months.
With a report from CTV’s Alberta Bureau Chief Janet Dirks
