Canadians dug themselves deeper in debt in the first part of 2012, despite repeated warnings of the danger that carries. A consumer credit report released Thursday by Equifax Canada showed Canadians pushed non-mortgage debt 3.4% higher in the first quarter than a year earlier.
The numbers were driven largely by a 9.7% rise in auto financing.
The report, which looks at credit in the form of bank loans, lines of credit, credit cards and auto loans, showed credit-card debt fell by 2.1% and has decreased for the past five quarters.
However, that has been matched by a corresponding rise in borrowing on lines of credit, which rose 1.4% in the quarter and has risen for four straight years.
Bank of Canada governor Mark Carney has warned household debt, which now stands at 150% of income, ranks as the number-one risk to the economy, as rising interest rates could imperil Canadians' ability to pay their mortgages.
