Credit card debt rises as household borrowing slows

While most forms of household borrowing grew more slowly in September, credit card debt rose sharply, Statistics Canada reports.

Total household borrowing rose by 0.2% in the month, an increase of $6.2 billion to $2.9 trillion, the national statistical agency reported.

Household mortgage debt was up 0.3% on a monthly basis, which marked a slowdown from August, StatsCan said. On an annual basis, mortgage debt was up 3.2%.

Total non-mortgage debt rose by just 0.1% in September — led by credit card debt, which surged by $700 million or 0.7% month over month.

However, other forms of non-mortgage borrowing only rose by 0.1%, and balances on home equity lines of credit dropped by around $600 million, muting the impact of rising credit card debt, StatsCan reported.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.