Young people, newcomers fuel new debt growth: TransUnion report
A Visa card is seen in Portland, Ore., Wednesday, May 15, 2024. AP Photo / Jenny Kane
The latest TransUnion debt report shows total debt continued to grow in the first quarter compared with the year before, driven mainly by young people and newcomers.
The credit-tracking agency says gen Z consumers saw their outstanding balances grow 30.6 per cent from the prior year.
The report says total outstanding debt grew 4.7 per cent to $2.5 trillion in the first quarter year-over-year.
Delinquencies, or missed payments, were also up 11 basis points year-over-year to 2.7 per cent — mainly driven by new-to-credit consumers.
The report also shows subprime consumers continued to struggle as their delinquency rates rose at significantly higher rates than prime and above-prime consumers.
Matt Fabian, director of financial services research at TransUnion Canada, says higher balances from high-risk credit consumers signal a critical moment for lenders to reassess risk strategies.
This report by The Canadian Press was first published May 28, 2025.
Ritika Dubey, The Canadian Press
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