That could mean some noticeable changes with your Visa, MasterCard and American Express, from higher interest rates to a more aggressive chase against unpaid debts.
According to canadian press They said: Earlier this month, Statistics Canada reported the economy shed 34,400 in December, pushing the unemployment rate up three-tenths of a point to 6.6 per cent.
Although interest rates are declining the spreads are widening, in some cases consumers may pay more (interest) than in the past just because they are more risky than other consumers.
The banks are the bellwether of the credit industry, and they've been making major changes to how they lend to consumers because they're afraid of defaulting accounts, says Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier Inc.
In good economic conditions they want larger balances, and for consumers to pay less (on their credit card bill) and more late payments," he said. "But, at this point in the cycle (they're trying) best as possible to get them to pay back as much as they can.
A study by the Vanier Institute found that average household debt in Canada surged to over $90,000 last year, while the total debt to disposable income ratio climbed to 140 per cent.
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