Equifax Global Consumer Credit Trends for Q1 2025

EQUIFAX HAS RELEASED ITS Q1 2025 GLOBAL CONSUMER CREDIT TRENDS REPORT, 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 report, made possible by the Equifax Cloud™ and the organization’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 THE TOP GLOBAL CONSUMER CREDIT TRENDS OF Q1 2025:

Refinance surges in Australia as borrowers capitalize on shifting economy

The first rate cut for Australia in over four years sparked a rapid acceleration in refinance activity in the first quarter of the year, mirroring the impact of the initial interest rate decrease during Covid-19, which triggered a 10% surge within six months. Volume of mortgage accounts externally refinanced grew 20% compared to March last year.

Most current mortgage refinance activity stems from loans issued during historically low interest rates, with investors comprising nearly 80% of the March 2025 total and showing strong interest in the market.

Canadian consumers are pulling back on spending amidst rising missed payments

Economic uncertainty continued to impact credit usage and consumer financial health across Canada: Over 1.4 million consumers (1 in 22) missed at least one credit payment in the first quarter of 2025. Although mortgage holders experienced some stabilization thanks to steady interest rates, financial strain remained acute for non-mortgage consumers. Delinquency rates among non-mortgage holders rose 8.9% year-over-year, compared to 6.5% for mortgage holders.

Card spending slows but balances continue to rise: Average monthly credit card spend per cardholder fell by $107 dollars during the first quarter, dropping to the lowest level since March 2022. The average credit card pay rate decreased to 52.9% in the first quarter, down 32 basis points (bps). Consumers under 35 years old showed a more dramatic shift, with their average pay rate falling 392 bps from 62.9% to 58.9%.

In the U.S., student loan delinquency now showing on delinquency trends

After four years of forbearance and a one year on-ramp to the repayment period that ended in September 2024, U.S. federal student loan delinquency reporting resumed. February 2025 was the first month reflecting non-deferred delinquency, jumping to pre-pandemic numbers in both the unit 90+ days past due (dpd), as well as in the $ 90 dpd metric.

One month later, student loan delinquency continued to "catch up", doubling from February to March 2025. Looking ahead into April 2025, the 90+ metrics are almost three times the pre-pandemic numbers.

However, there are positive signs relating to student loans: in the Equifax U.S. National Consumer Credit Trends Report reflecting March 2025 data, the following was observed:

• Outstanding student loan balances were $1.315 trillion, a 13.1% decrease in total balances YoY.

• Outstanding student loan accounts stood at 147.8 million, a decrease of 17.3% YoY.

Consumers in the U.K. face economic headwinds yet remain resilient

The latest Equifax data reveals a contrasting picture for U.K. consumers – on the one hand economic headwinds are hindering mortgage recovery, but on the other hand the previous year saw a notable increase in credit card activity, suggesting a shift in consumer confidence and behavior. Similarly, despite increasing debt levels, repayment behaviors remained relatively stable throughout the year.

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 here.