Executive Summary

Here are the top 3 trends from 2024:

Unsecured credit demand is rising 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

Younger generations in the U.S. 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 Millennials, with Gen Z seeing an almost 2X increase in 60+ days past due delinquency post-pandemic.

Canadian consumers are facing a widening financial divide

Canada’s Ontario province faces 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 Q4'24.
Glossary of Common Terms & Sources

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