CONSUMER DEBT BALANCES DROP

A sharp decline in the use of credit cards at the end of March led to the first drop in consumer debt balances in more than a decade, according to Equifax Canada. Average balances on debt excluding mortgages dropped 0.5 per cent to $23,386 in the first quarter from a year earlier, the country’s largest credit reporting firm said Tuesday. With stores and restaurants closed in March due to COVID -19, consumers cut back on credit card use, leading to the dip in balances. The trend gained traction in April, “with few signs that consumers are looking to debt for support in the early days of the pandemic,” Bill Johnston, vice-president of data and analytics at Equifax, said in a statement. Equifax said the biggest decrease in debt loads was in the youngest cohort. Average balances on non-mortgage debt for 18- to 25-year-olds fell one per cent to $8,588, the data show.