Debt Delinquency Down to 2.58%

TransUnion, a credit monitoring agency, revealed in their reports that Canadians seem to get better in handling consumer debt with an overall delinquency rate of 2.58% on non-mortgage consumer debts from 2.69% rate in 2014. Delinquency rate is described as the ratio of all accounts that are 90 or more days past due.

TransUnion’s director of research, Jason Wang, thinks that this is encouraging news.  According to him, this speaks to the fact that both sides (borrower and lender) are bearing in mind the importance of responsible lending.

Auto loans increased from 1.06% to 1.10%, credit cards by a mere 1% from 2.17% to 2.18%, installment loans went down from 3.65% to 3.12% and lines of credit from 0.81% to 0.74% showing 8.37% decline next only to installment loans.

“Delinquency rates of all credit products are relatively low, but even so we have observed a pronounced improvement in some of the most popular credit products such as lines of credit. This is a positive sign that Canadians are both increasingly aware of the importance of making payments on time, and have the capacity to do so. The recent interest rate cuts may have in part made it easier to manage lines of credit, which typically carry variable rates,” he added.

Educating people on financial management is very important to meet the expectations of both the lender and the borrower. For example, Canadian Payday Loans Association (CPLA) ensures payday loan companies in Canada help their customers make informed financial decisions. This aids in consumer protection while preserving the companies that take the risk when they loan their resources.

While it is best not to incur debt, for some, it is actually inevitable. This happens when a household is strapped for cash for certain emergencies or unforeseen yet unavoidable household expenses. To avoid this in the future, we strongly advise strong financial management with our clients such as setting an emergency fund for these kinds of situation.

We sincerely wish to help our customers when they come to us needing financial assistance. We offer fast, transparent and hassle-free transactions that help alleviate our client’s financial stress.

At GoDay, we believe that if we can help you get through a few financial hurdles, that would be terrific; but if we can help you avoid them altogether, even better.