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13 septembre 2021

Canadians say adios to 20.6 billion worth of debt

It seems, Canadians have collectively used their time at home during the pandemic to reflect on their finances and pay off an impressive amount of debt.

According to Statistics Canada, overall non-mortgage debt fell by 20.6 billion from the start of the pandemic to January 2021. Non-mortgage debt includes debt such as payday loans, auto loans and credit cards.

While this amount is shocking, on its own, what might be more surprising, is the fact that most of that debt was paid off by Canadians with lower credit scores.

The total balance owing for those with credit scores below 640 dropped from nearly $15 billion in the 4th quarter of 2019 to below 10 billion in the 1st quarter of 2021. Comparatively, those with credit scores over 800 only reduced their non-mortgage debt from about 16 billion to 14 billion.

For those with lower scores, this meant a more than 35% drop in balances, while those with credit scores between 641-800 saw drops of between 15-20%.

If you think that’s surprising, here’s the real kicker – due to lengthy lockdowns, which gave Canadians little opportunity to spend, household consumption spending dropped 14.7% in the 2nd quarter of 2020. When compared to a year earlier, this has been the biggest year-over-year spending decline since Statistics Canada started tracking in 1961!

Even though household spending has already bounced back since lockdown restrictions have eased across the country, March 2021 credit card balances were still $11.5 billion below their pre-pandemic levels.

Since people are starting to go out and start spending again, paying off their debt may just be a way to increase their post-pandemic purchasing power.

As a financing company that has helped millions of consumers across the country secure financing, regardless of their credit score, we’re happy to see Canadians lowering their debt and becoming more financially responsible consumers.


Lendcare à être acquis par goeasy

Lendcare à être acquis par goeasy

Le 12 avril 2021, nous avons annoncé que LendCare a conclu un accord pour être acquis par goeasy Ltd. goeasy est l’un des principaux fournisseur de services financiers alternatifs et crédit-bail au Canada. L’entreprise propose une grande variété de produits financiers qui aident les Canadiens à s’assurer un meilleur avenir financier.


Cette acquisition stratégique ouvre des perspectives extraordinaires pour LendCare, nos employés, nos clients et nos partenaires. Nous continuerons à nous appuyer sur l’incroyable croissance que nous avons réalisée jusqu’à présent et à accélérer notre stratégie de croissance grâce aux investissements de goeasy dans l’activité de LendCare.


LendCare continuera d’opérer comme aujourd’hui. Rien ne changera dans notre relation avec vous. Notre équipe de direction actuelle restera en place et vous continuerez à travailler avec l’équipe comme vous l’avez toujours fait. Nos équipes continueront à vous fournir le haut niveau de soutien auquel vous êtes habitués.


En savoir plus au sujet de cette annonce.