A new report from Equifax Canada has revealed that most Canadians are still able to manage their debts stably, despite economic challenges and rising borrowing levels.

The report noted that the average non-mortgage debt for individuals has increased by 2.7% compared to last year, driven by increased use of credit cards and personal loans. Nevertheless, the report clarified that the majority of consumers are still able to meet their financial obligations on time, reflecting a level of financial stability.

Rebecca Osborne, Vice President of Financial Analytics Solutions at Equifax, confirmed that "Canadians are facing increasing financial pressures, but overall, they are still able to manage their debts responsibly."

The report explained that the demand for consumer loans remains high, especially under high interest rates, which may increase the financial burden on Canadian households in the future.

This report comes at a time when experts are monitoring the effects of fluctuating economic conditions, including inflation and rising living costs, on individuals' ability to continue repaying their debts without financial distress.