Canadians’ credit card debt reaches record high level amid sky-rocketing inflation

The recent poll by Equifax Canada shows that Canadians are relying more and more on credit cards amid the on-going inflation surge and growing interest rates.

According to the survey, the average credit card balance held by Canadians reached a record high level of $2,121 by the end of September.

The average non-mortgage debt was $21,188. Last time we’ve seen such a result was in the first quarter of 2020.

It proves that Canadians are feeling less secure about their personal finances than a year ago. More than half of respondents worry about paying for rent, utilities or insurance, with the highest level of concern reported among adults aged 65+.

More than half of those surveyed have strong anxiety in terms of their personal debt levels.

Equifax Canada’s Julie Kuzmic says the previous record high average credit card balance was reported in the fourth quarter of 2019 – it reached $2,118.

She noted that the average credit card debt was down during the pandemic, but credit card usage has been growing for six quarters in a row now.

“Credit card usage is reaching historic highs,” – added Kuzmic.

In her opinion, the increased credit card usage is a “slippery slope” for some, as debt may be more difficult to pay off amid today’s economic conditions.

The report says more than half of respondents are searching for promo deals at the grocery store more often than a year ago, or reduce their grocery shopping at all.

We want to reaffirm our commitment to the hundreds of Canadian homeowners we help each year by consolidating credit card and high interest debt into one affordable mortgage payment and freeing up extra money for everyday expenses. This is especially important today, in an era of extremely high inflation and a sharp rise in the cost of living.