More Canadians in arrears on credit payments

by CBC — July 3, 2009

More than half a million Canadians are more than three months behind on their credit payments, according to Equifax Canada.

That represents a 19 per cent rise in the average delinquency rate in the year ending May 31, says Equifax, which provides credit check information on companies and individuals.

While the company called the double-digit jump "alarming," the overall average delinquency rate for Canada was 1.52 per cent.

In a report released Thursday, the company said most of the arrears are the result of missed payments on credit cards.

Toronto forklift operator Derek Crooks is among those who are struggling, with about $40,000 in debt racked up on eight different credit cards.

While he says it was too easy to get the cards in the first place, he wishes there was more compassion in the industry.

"Have a bit of mercy on me," he said. "They lend me these cards on good basic grounds. And I think it's all right to pay back their money, but I can't pay back all of this money right away."

Meanwhile, debt counsellors at the Ontario Association of Credit Counselling Services have seen a 25 to 30 per cent jump in clients over the past three months, says spokeswoman Henrietta Ross

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Source:CBC top stories