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Debt Crisis: Canadian Tire credit card write-offs surge to nearly 8%

Author

Jay Lutz
July 15, 2024

Sponsored by Rua Gold

Debt Crisis: Canadian Tire credit card write-offs surge to nearly 8%

Canadian Tire Corporation (TSX: CTC.A) has reported a significant increase in the rate of credit card debt write-offs, raising concerns about consumer financial health and the company’s credit portfolio stability.

According to Doug Hoyes, a bankruptcy trustee and financial commentator, the write-off rate for Canadian Tire credit cards has more than doubled over the past three years. “In 2021, the write-off rate was 3.81%. As of 2024, it has surged to 7.83%,” Hoyes stated in a recent post​​.

You can read more on the matter here.

Rua Gold Corp (CSE: RUA) is exploring for high grade gold in the re-emerging gold jurisdiction of New Zealand, where the company is already drill testing its Reefton project. Early results from the program include 16.4 g/t gold over 7 metres at a new discovery known as the Pactolus Vein, while the region is said to be wide open at depth. The region is ripe with activity, with OceanaGold recently selling an adjacent project for $30 million, which boasted a resource containing gold grades of 23 g/t.

What’s going on?

  • CREA Cuts Housing Market Forecast Amid Increased Supply Levels (theDeepDive)

  • Bank of Canada Surveys Show Subdued Inflation Expectations (Bloomberg)

  • Saudi Arabia’s Alleged Threat Over EU Bonds Raises Geopolitical Tensions (theDeepDive)

  • Federal Judge Dismisses Classified Documents Prosecution Against Trump (WSJ)

  • Cybersecurity Firms See Robust Job Growth Amid Rising Digital Threats (theDeepDive)

  • Biden administration mulls more Alaska drilling protections (Reuters)

  • China and Russia begin joint naval drills, days after NATO allies called Beijing a Ukraine war enabler (Globe)

  • Canada Purchases $6.63 Million Condo for Consul General in New York While Citizens Struggle Amid Housing Crisis (theDeepDive)

  • Xi tackles slow growth as economy 'hits the brakes' (BBC)

  • Is Chrystia Freeland Out? (theDeepDive)

What’s the latest?

  • Trump Train: Financial markets reacted strongly after the attempted assassination of Donald Trump, with signs pointing to increased momentum for trades anticipating his potential return to the White House. Treasuries fell, the dollar strengthened, and Bitcoin saw a significant jump. The yield on 30-year bonds rose, suggesting expectations of growth spurred by Trump's fiscal and trade policies.

  • Google Talks: Google parent Alphabet Inc. is in advanced talks to acquire cybersecurity startup Wiz for $23 billion, according to the Wall Street Journal. This would be Alphabet's largest acquisition to date and aims to strengthen its cloud computing capabilities, an area where it trails competitors. Wiz, valued at $12 billion during a May funding round, specializes in identifying and mitigating risks in cloud environments. Alphabet has not commented on the matter.

  • Victoria Gold: Victoria Gold has expressed uncertainty about resuming production at its Eagle Gold mine in Yukon following a major ore-slide disaster on June 24. The company has said it is unsure if it has the financial resources to repair the damage and address the environmental impact, including the escape of 300 million litres of cyanide solution. The company has also acknowledged receiving default notices from its lenders under a 2020 credit agreement.

  • Buyout: Cleveland-Cliffs Inc. has agreed to acquire Canadian steelmaker Stelco Holdings Inc. for approximately $3.85 billion, offering a premium of 87% over Stelco’s Friday closing price. This strategic move, led by Cliffs CEO Lourenco Goncalves, follows an unsuccessful bid to acquire U.S. Steel Corp. last year.

  • Corus Earnings: Corus Entertainment reported a loss of $769.9 million for the latest quarter, compared to a loss of $495.1 million a year earlier, as its revenue fell by 16%. The broadcaster's loss amounted to $3.86 per diluted share for the quarter ended May 31, compared to a loss of $2.48 per share last year. Revenue dropped to $331.8 million from $397.3 million, with television revenue falling to $308.2 million from $371.2 million, and radio revenue slipping to $23.6 million from $26.2 million.

Silver shortage explained

The stock market and stuff

  • Lundin Mining Reportedly Exploring Purchase Of Filo Corp (theDeepDive)

  • Macy’s Terminates Buyout Talks With Investor Group (WSJ)

  • Apple hits record high again after being Named top pick at Morgan Stanley (BNN)

  • Chilean Lithium Qualifies for U.S. Inflation Reduction Act Tax Incentives (theDeepDive)

  • Trump Media shares soar more than 30% after assassination attempt (CNBC)

  • Rio Tinto Explores Potential Bid for Teck Resources (theDeepDive)

In the juniors

  • Rua Gold To Become Largest Landholder In Prolific Reefton Goldfield Following $18.5 Million Purchase (theDeepDive)

  • Calibre Mining To Conduct 100,000 Metre Drill Program At Valentine (theDeepDive)

  • Plurilock Appoints Palantir Senior Advisor To Company’s Industry Advisory Council (theDeepDive)

FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.