TransUnion’s quarterly analysis of Canadian credit trends showed that the average consumer’s total debt — excluding mortgages — increased at its greatest rate in nearly two years, sparked in part by a climb in auto loan commitments.

The overall average jumped 4.6 percent during the third quarter to $26,768. TransUnion determined Canada experienced both its largest quarterly (2.1 percent) and annual (4.6 percent) growth since the fourth quarter of 2010.

A significant portion of the quarterly average debt total is tied to vehicle contracts.

Canadian auto borrower debt — defined as the aggregate balance on all auto captive loans for an individual auto captive borrower — increased more than 11.25 percent year-over-year and 1.84 percent quarter-over-quarter. The third-quarter reading came in at $19,228.

For reference, TransUnion noted the average auto debt level after the first quarter of last year stood at $16,181.

Analysts indicated the increase in overall average debt was consistent throughout Canada.

On a year-over-year basis, the largest increases were found in New Brunswick (9.49 percent), Prince Edward Island (8.25 percent) and Newfoundland and Labrador (7.83 percent).

In the last five years between the third quarter of 2007 and third quarter of this year, TransUnion said inflation as measured by the Consumer Price Index has risen 9 percent; yet total consumer debt (excluding mortgages) has jumped more than 37 percent.

“At this time last year, we were encouraged to see consumer total debt levels remain relatively stagnant for three consecutive quarters,” said Thomas Higgins, TransUnion's vice president of analytics and decision services.

“One year later, it appears we have reversed course as consumer total debt has increased for three straight quarters, including the largest jump in nearly two years this past quarter,” Higgins continued. “While delinquency levels remain about the same or lower than they were one year ago, it should be noted that in the past five years debt levels have now increased 400 percent more than the rate of inflation.”

As Higgins mentioned, delinquency levels continue to remain low across all major product categories. For auto loans, the third-quarter delinquency reading came in at 0.11 percent, which was a 13.79-percent jump above the previous quarter but a 14.48-percent decline versus a year ago.

“Despite increased debt levels, Canadian consumers have done well to maintain relatively low delinquency rates,” Higgins said. “It should be noted that many consumers are taking advantage of the low interest rate environment. Just five years ago, interest rates were significantly higher than they are today.”