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Despite long-standing concerns about household debt levels, Canadians are still doing better with their credit cards than before the pandemic, according to Fitch Ratings.

The rating agency reported that credit card performance improved across all metrics in the second quarter, with delinquency and charge-off rates both improving.

“Canadian consumers have continued to show their resiliency through the pandemic, with an elevated savings rate, lower card delinquencies and charge-offs, along with a decrease in insolvency filing volumes, which were 35% below pre-pandemic levels in June,” Fitch said.

Additionally, the monthly payment rate hit a new high in June (57.2%), it reported.

Fitch said it expects the monthly payment rate to remain elevated amid high savings rates and government stimulus measures, but that rates will eventually trend toward pre-pandemic levels as public health restrictions are lifted and consumer behaviour returns to more normal conditions.

Similarly, delinquencies and charge-offs are expected to trend toward pre-pandemic levels “assuming tighter restrictions are not re-instated due to a fourth wave.”