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The delinquency rate among seniors was 0.88 per cent in the second quarter, down 7.3 per cent from a year ago. The Canadian delinquency rate overall was 1.09 per cent in the second quarter, down 4.2 per from a year ago. Delinquency rates, already low by historical standards are going down in every province but Alberta where they climbed 1.7 per cent from a year ago.

The overall debt picture continues to show Canadians are increasing what they owe, even if they are making their payments on time. The average debt across the country was up 3.3 per cent in the second quarter. Total debt including mortgages climbed to $1.769 trillion nationally up from $1.666 trillion a year ago, an increase of 6.2 per cent.

Ontario consumers have been leading the way, on debt. The average non-mortgage debt in the province was up 5.1 per cent in the second quarter from a year ago to $22,671. This increase occurred as delinquency rates dropped 8.1 per cent from a year ago to under 0.98 per cent.

Albertans have the most non-mortgage debt with an average of $28,240 at the end of the second quarter but the pace of debt increases seems to be slowing in the province.

“Even in the face of potential increase of interest rates, consumers across the country continue to borrow and spend to some degree,” said Molina.

Pressure is growing on the Bank of Canada to increase rates again after raising its overnight lending rate 25 basis points in July. That move bumped up the prime lending rate from 2.7 per cent to 2.95 at most banks. With most loans tied to prime, another central bank increase could make it tougher to borrow for consumers.