TORONTO — TransUnion's quarterly analysis of Canadian credit
trends showed that the average consumer's total debt — excluding mortgages —
increased at its greatest rate in nearly two years, sparked in part by a climb
in auto loan commitments.

The overall average jumped 4.6 percent during the third
quarter to $26,768. TransUnion determined Canada experienced both its largest
quarterly (2.1 percent) and annual (4.6 percent) growth since the fourth
quarter of 2010.

A significant portion of the quarterly average debt total is
tied to vehicle contracts.

Canadian auto borrower debt — defined as the aggregate
balance on all auto captive loans for an individual auto captive borrower —
increased more than 11.25 percent year-over-year and 1.84 percent
quarter-over-quarter. The third-quarter reading came in at $19,228.

For reference, TransUnion noted the average auto debt level
after the first quarter of last year stood at $16,181.

Analysts indicated the increase in overall average debt was
consistent throughout Canada.

On a year-over-year basis, the largest increases were found
in New Brunswick (9.49 percent), Prince Edward Island (8.25 percent) and
Newfoundland and Labrador (7.83 percent).

In the last five years between the third quarter of 2007 and
third quarter of this year, TransUnion said inflation as measured by the
Consumer Price Index has risen 9 percent; yet total consumer debt (excluding
mortgages) has jumped more than 37 percent.

"At this time last year, we were encouraged to see consumer
total debt levels remain relatively stagnant for three consecutive quarters,"
said Thomas Higgins, TransUnion's vice president of analytics and decision
services.

"One year later, it appears we have reversed course as
consumer total debt has increased for three straight quarters, including the
largest jump in nearly two years this past quarter," Higgins continued. "While
delinquency levels remain about the same or lower than they were one year ago,
it should be noted that in the past five years debt levels have now increased 400
percent more than the rate of inflation."

As Higgins mentioned, delinquency levels continue to remain
low across all major product categories. For auto loans, the third-quarter
delinquency reading came in at 0.11 percent, which was a 13.79-percent jump above
the previous quarter but a 14.48-percent decline versus a year ago.

"Despite increased debt levels, Canadian consumers have done
well to maintain relatively low delinquency rates," Higgins said. "It should be
noted that many consumers are taking advantage of the low interest rate
environment. Just five years ago, interest rates were significantly higher than
they are today."


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