Consumer credit usage in Canada during the coronavirus pandemic
Canadian Journal of Economics, vol.55, no.S1, pp.88-114, 2022 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 55 Issue: S1
- Publication Date: 2022
- Doi Number: 10.1111/caje.12544
- Journal Name: Canadian Journal of Economics
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, Business Source Elite, Business Source Premier, CAB Abstracts, EconLit, Geobase, Public Affairs Index, DIALNET
- Page Numbers: pp.88-114
- TED University Affiliated: No
Abstract
© 2022 Canadian Economics Association.The recent COVID-19 pandemic has devastated economies worldwide. Using detailed, monthly data from a major consumer credit reporting agency in Canada, we have examined individuals’ use of credit cards and home-equity lines of credit (HELOCs). We found a dramatic leftward shift in the distribution of credit card and HELOC outstanding balances, providing evidence for a widespread reduction in credit usage. Our findings suggest that, during the COVID-19 recession, Canadian consumers were able to meet their financial needs without increasing their debt burdens. These results complement other findings concerning a decline in consumer spending and the results of government assistance programs, and imply that the economic consequences of this pandemic are very different from those in other recessions.