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Driven by a sharp rise in credit card debt, household debt growth accelerated in December, according to new data from Statistics Canada.

In a new report, the national statistics agency said that households’ total credit liabilities rose by 0.5% in December, faster than its 0.4% growth rate in November.

While mortgage debt contributed the lion’s share of the growing debt load, accounting for $8.5 billion of the $13.9 billion monthly increase, other forms of borrowing rose faster — households’ non-mortgage debt grew by 0.7% in the month, rising much faster than the 0.2% growth posted in November.

Home equity lines of credit (HELOCs) grew by 0.3% in December, but credit card debt jumped by 1.5% in the month, StatCan said.

The rapid rise in credit card debt in December came on the heels of a 0.2% decline in the category in November.

StatCan said that the sharp increase in credit card balances “may be attributable” to the temporary GST/HST holiday that was announced Nov. 21, and took effect in mid-December.

Other forms of non-mortgage debt also grew significantly in December, rising by 0.7%, or $3.3 billion in the month.

Alongside the GST/HST holiday, the Bank of Canada’s benchmark interest rate continued to decline in December, dropping by 50 basis points to finish the year at 3.25%, it noted.

On an annual basis, total household debt rose by 4.1% in 2024, faster than the 3.3% rate recorded in 2023.

However, StatCan also reported that, while household borrowing ramped up during the year, total borrowing by private non-financial corporations — comprised of outstanding loans and net transactions in debt securities — was down by $7.5 billion in December, and came in lower for 2024 overall, at $93.2 billion, down from $99.2 billion in 2023.