A new survey indicates Canadians are relying more on credit cards amid persistent inflation and rising interest rates.
Equifax Canada’s consumer survey released Tuesday found that the average credit card balance held by Canadians hit a record high of $2,121 at the end of September. Equifax says the average non-mortgage debt per consumer was $21,188, returning to a level not seen since the first quarter of 2020.
$21,188
That’s the average non-mortgage debt per consumer, a level not seen since the first quarter of 2020.
Canadians feel less secure about their financial outlook than a year ago, and more than half are worried about paying regular bills like rent, utilities or insurance, especially adults 65 and older . More than half of Canadians surveyed said they were very worried about their level of personal debt.
Julie Kuzmic of Equifax Canada says the last high average credit card balance was in the fourth quarter of 2019, at $2,118. She adds that average credit card debt has fallen during the pandemic, but credit card usage has now increased for six straight quarters. “Credit card use is at historic highs,” Ms.me Kuzmic in a statement.
She pointed out that the increased use of credit cards would be “risky” for some, as debt could be harder to pay off in the current economic environment.
More than half of respondents said they either look for grocery discounts more than a year ago or spend less of their budget on grocery shopping.
To see in video