A fresh statement published on Thursday reveals that the Canadians’ Gen Z and Millenials are leading the consumer credits debt which raised to an average of $29,312, in 2017.
Youngest Canadians are the leading clients in the consumer credit market
Regular Canadians’ consumer debt went higher by 4.3% in 2017 but the credits made by Gen Z and Millenials went up with 22.9% and, respectively, 12.6%, according to the report conducted by TransUnion.
“As consumer debt continues to increase, it’s clear that the youngest generations are playing a critical role in the consumer credit market,” explained the TransUnion’s research director, Matt Fabian.
The people born beginning with 1995 are considered the Gen Z (Generation Z), while the Millenials are considered to be the people who were born between 1980 and 1994.
The youngest Canadians generations are not prepared for such big debts
According to the TransUnion’s research director, Matt Fabian, the Gen Z’s members will, most probably, face lots of problems because of the lack of experience in handling loan commitments and a poor strategy to regularly make the monthly debts’ payments due to the Gen Z’s low-discipline characteristic.
According to the TransUnion’s paperwork, the Millennials consumer credits debt has increased so considerably due to the Millenials’ costly lifestyle.
“Millennials are taking on additional balances as they reach significant life events that put pressure on their overall wallet – many of them are now supporting children, purchasing homes and acquiring additional vehicles,” explained Matt Fabian, adding that these additional expenditures can only be covered with more and more credits made by Millenials.
The youngest Canadians generations’ debts have increased significantly but, at the same time, the same trend is observed in the delinquency rates, unfortunately. According to TransUnion’s report, the Gen Z and Millennials inexperience with loans and low-discipline in debts repayments are leading to increased delinquency rates.
Karen and her husband live on a plot of land in British Columbia. They aim to grow and raise a significant part of their food by maintaining a vegetable garden, keeping a flock of backyard chickens and foraging. They are also currently planning a move to a small cabin they hand built. Karen’s academic background in nutrition made her care deeply about real food and seek ways to obtain it. Thus sprung Anna’s interest in backyard gardening, chicken and goat keeping, recycling and self-sufficiency.