TransUnion's latest Canadian debt report, released on May 28, 2025, revealed that total outstanding debt in Canada continued to grow in the first quarter, increasing 4.7% year-over-year to $2.5 trillion. This growth was primarily driven by young people and newcomers to Canada.
Gen Z consumers saw their outstanding balances grow by 30.6% from the prior year, indicating a significant increase in their credit utilization. However, delinquencies, or missed payments, were also up 11 basis points year-over-year to 2.7%, largely driven by new-to-credit consumers.
Matthew Fabian, director of financial services research at TransUnion Canada, emphasized that higher balances from high-risk credit consumers signal a critical moment for lenders to reassess risk strategies. This report underscores the evolving dynamics of the Canadian credit market and the importance of TransUnion's data and analytics for risk management.
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