Canadians took on more debt in 2014, reversing a trend towards deleveraging that was found in 2013, according to a market trends report by credit rating agency, TransUnion Canada.

The average balance per consumer, excluding mortgages, rose 2.3% to $21,428 in the final quarter of 2014 from $20,945 in the same period for 2013.

“This trend is likely to continue after the recent rate cut by the Bank of Canada made borrowing more affordable,” says Jason Wang, director of research and industry analysis in Canada for TransUnion.

The balance gains are generally coming from traditionally lower-interest rate products such as installment loans and lines of credit, while balances have dropped in higher-interest rate products like credit cards, according to Wang.

Line of credit balances rose 4.4%, jumping from an average of $29,273 in Q4 2013 to $30,554 in the same period for 2014. Average installment loan debt levels rose 2.4% from $21,665 in Q4 2013 to $22,187 during Q4 2014. At the same time, credit card balances dropped more than 2% from $3,738 to $3,659.

Despite the rise in line of credit and installment loan balances, the 90-day delinquency rate (where accounts are 90 or more days past due) for both line of credit accounts and installment loans dropped. For instance, 90-day delinquency rates declined nearly 13% between Q4 2013 and Q4 2014.

Most financial institutions are finding lines of credit, which comprise 40.4% of all non-mortgage debt, are a great area to lend and declining delinquency levels is a positive sign for lenders and consumers, says Wang.

TransUnion also reports that most provinces and major markets experienced significant increases in their debt levels while Calgary and Edmonton saw small declines. However, consumer debt and delinquency performance tend to lag behind general economic conditions and it remains to be seen how these oil-rich cities will fare.

“We will monitor the market closely over the next few quarters to see just how big of an impact declining oil prices might have,” says Wang.

The report also studied credit card trends for different generations. It found that consumers born between 1980 and 1994 had a 90-day or worse credit card delinquency rate of 2.76% at the end of 2014. This is lower than the 2.86% rate for consumers born between 1965 and 1979.

Despite having comparable delinquency rates, the younger group tends to be assigned much lower credit limits than the older generation.

While these two generations may diverge in the distribution of risk, with possible differences in life stages and employment profiles, their delinquency rates are similar, notes Wang.

“Lenders might benefit from taking a closer look at this interesting dynamic — it may present an opportunity to further engage younger consumers to build loyalty and long-lasting relationships,” he says.