A new survey says 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 was at a record high of $2,121 at the end of September.
Equifax said the average unsecured debt was $21,188, back to levels not seen since the first quarter of 2020.
Canadians are feeling less secure about their financial prospects than they did last year, and more than half are worried about paying common bills like rent, utilities or insurance – especially those who don’t. adults 65 years and older.
More than half of Canadians surveyed said they were very worried about their personal debt levels.
Equifax Canada’s Julie Kuzmic said the previous peak of average credit card balances was in Q4 2019, at $2,118.
She said average credit card debt has fallen during the pandemic, but credit card usage has now increased for six straight quarters.
“Credit card usage is reaching historic highs,” Kuzmic said in a statement Tuesday.
She said increased credit card use would be a “sloping slope” for some, as debt could be harder to repay in the current economic climate.
More than half of respondents said they were looking for more grocery store deals than last year or cutting out grocery shopping altogether.
This Canadian Press report was first published on November 1, 2022.
