“We are finally starting to see small affordability improvements for consumers to purchase and finance vehicles,” said Oakes. “Reductions in used car prices along with better rate deals for new cars are helping to drive an increased demand for auto loans.”
Credit card debt was up 9.4% overall, partly due to population growth but also because more consumers were unable to pay their balance off in full. And while discretionary spending eased in the third quarter, Oakes says those struggling with debts should restrain holiday expenses.
“While recent rate cuts have alleviated some of the strain for some people, the financial pressures on Canadians remain significant,” she said. “We are seeing that those that get into debt are having a hard time getting out of it. As the holiday season approaches, consumers should consider their personal financial positions when making spending decisions to avoid financial strain.”
