Equifax Releases 2024 Global Consumer Credit Trends Insights

EQUIFAX HAS RELEASED ITS 2024 GLOBAL CONSUMER CREDIT TRENDS, a report that features global consumer credit data and trends information from 10 different countries including Australia, Brazil, Canada, India, Spain and the United States. 

The third annual report, made possible by the Equifax Cloud™ and the company’s custom data fabric, is designed to give lenders around the world a deeper view into overall consumer credit demand, debt, delinquencies, credit card utilization rates and inflation trends in their particular region to make more informed decisions and innovate faster – enabling more mainstream financial opportunities for consumers. 

HERE ARE THREE KEY GLOBAL CONSUMER CREDIT INSIGHTS FROM THE 2024 REPORT:

Unsecured credit demand is rising in Australia as consumer-facing industries are most impacted

Australia has seen a rise in unsecured credit demand since 2021 due to economic challenges, with the gap between secured and unsecured credit widening from 17% in 2021 to 32% in 2024. Hospitality workers are particularly affected, with unsecured credit inquiries jumping from 14% in 2021 to 43% by 2024. This increase, coupled with higher delinquency rates in consumer-facing industries, points to growing financial pressures on specific segments of the workforce.

Younger generations struggling to find footing in economy in the United States

Younger generations are experiencing an increasing financial strain due to rising costs, stagnant wages, and student loan debt. While older generations are maintaining or improving their ability to pay, Gen Z's has fallen by 3%. Plus, increases in delinquency are most pronounced for Gen Z and Millenials, with Gen Z seeing an almost 2X increase in 60+ days past due delinquency post-pandemic.

Canadian consumers are facing a widening financial divide  

In Canada, the Ontario province faced significant mortgage delinquency challenges fueled by higher interest rates, with a 90.2% surge in the severe delinquency rate compared to 20.4% in the rest of Canada. Conversely, rate cuts are bringing relief for some homeowners, stabilizing unsecured credit delinquencies and improving credit card repayment habits. Younger consumers are also showing vulnerability to economic changes; consumers under 26 saw a 19% annual increase in severe credit card delinquency rates in the fourth quarter of 2024.

As consumer credit markets continue to evolve around the world, understanding consumer credit behavior and inflation trends is critical. Equifax offers consumer credit perspectives from various regions, including monthly National Consumer Credit Insights in the U.S. as well as quarterly consumer and commercial insights in Australia and Canada. The U.K. also produces its annual Financial Health Report, which provides a comprehensive overview of the nation’s financial wellbeing.

Explore additional global credit and financial data insights from 2024 here.