According to a recent survey, Canadians are using credit cards more frequently due to persistent inflation and rising interest rates.
According to a consumer survey by Equifax Canada published on Tuesday, at the end of September, the average credit card balance carried by Canadians had reached a record high of $2,121.
According to Equifax, average non-mortgage debt reached levels last seen in the first quarter of 2020, totaling $21,188.
More than half of Canadians, especially those 65 and older, are concerned about paying basic costs like rent, energy, or insurance, and less than one-third feel as financially secure as they did a year ago.
In a survey of Canadians, more than 50 percent admitted to being extremely anxious about their personal debt loads.
According to Julie Kuzmic of Equifax Canada, the previous peak for the average credit card amount was $2,118 in the fourth quarter of 2019.
She claims that although the pandemic saw a decrease in average credit card debt, credit card utilisation has since risen for six straight quarters.
According to a statement released by Kuzmic on Tuesday, “Credit card usage is at historic highs.”
She said that increased credit card usage will be a “slippery slope” for some, as debt may be harder to pay back in the current economic environment.
More than half of those surveyed claimed to be shopping less frequently for groceries or hunting for better prices than they did last year.
According to a poll, Canadians have record-high credit card debt and excessive inflation.
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