Six numbers that show how debt grinds people down

The numbers used to track household debt levels are so big that they almost defy understanding. Example: consumer debt hit $2.5-trillion at the end of the first quarter of 2024, according to the latest credit trends report from Equifax Canada. Yup, that’s a lot of debt. But what does it mean to individual households with mortgages and other types of debt? Here are some numbers in the Equifax report that tell the story:

34,000:

The approximate number of people who missed a payment on a mortgage in the first quarter, up 22.7 per cent from a year earlier.

$1-billion:

The total balance of mortgages in severe delinquency – 90 days or more without payment – crossed this threshold in the first quarter for the first time in Ontario. That’s double the pre-pandemic level.

$500+:

Almost 9 per cent of people renewing a mortgage in the first quarter of this year saw their monthly payments rise by this much.

1.26-million:

The number of people who missed at least one payment on some type of credit in the first quarter.

$21,276:

The average non-mortgage debt in the first quarter of this year. Up just 1.8 per cent from the same time last year.

19 per cent:

The rise in the number of Equifax credit checks in the first quarter compared to a year earlier. This increase results from more people switching lenders and checking their own credit scores.

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Rob’s personal finance reading list

Impossibly unaffordable cities

Vancouver and Toronto take the third and 10th spots on a list of global cities where home prices are considered impossibly unaffordable. Edmonton and Calgary are cited as affordable alternatives.

When to book travel to save the most

A travel industry executive says that if you find something that fits your budget, don’t wait for lower prices. The reason is dynamic pricing, which means costs fluctuate and can very likely rise if you wait.

The renter revolution

A look at which cities have the highest share of renters. Given high house prices, it’s no surprise that there’s been much more growth in the number of renters compared to homeowners.

Kitchen gear, on the cheap

Tips for buying second-hand or refurbished kitchen gear. Save money on pots and pans and small appliances like mixers.

Reader comment: “There is one secret to avoiding airline checked bag charges – and you will never guess it. All of Canada’s major airlines offer one perk to veterans and members of the Canadian Armed Forces – we get free bags on all flights! This may not be enough for you to change careers or join the reserves, but it sure is convenient.”

Note: Air Canada offers three pieces of checked luggage weighing up to 32 kilograms each to active or retired members of the Canadian Armed Forces, while WestJet offers three or four bags, depending on the flight.

Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.

Tools and guides

A list of ombudsman offices for cities across Canada, banks, insurance companies and more. A place to take complaints that you can’t get resolved elsewhere.

In the social sphere

Social Media: A thread on Reddit that delves into the benefits of having a high credit score.

Listen: The Money Isn’t Scary podcast in conversation with Robin Taub, an expert on teaching kids about money.

Money-Free Zone: Random themes for summer: I Feel Free by Cream and Sunshine by World Party. I’ve done this one before, but it’s so good – Summer Breeze by the Isley Brothers.

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