This was up 2.2% from the previous year. Canadian savings rates have increased significantly during the pandemic, but mortgage debt levels fueled the rise in debt. Debt from credit cards, auto loans, and lines of credit fell in the year-over-year period.
Canadians have saved significantly more as COVID-19 restrictions and lockdowns have cut down or cut out leisure activities for most of the country. If you have high credit card debt, you should be using these increased savings to service it. Credit card debt is, on average, much higher than interest rates for auto loans, mortgages, and lines of credit.
This credit card offers an ultra-low introductory interest rate for a set promotional period. For example, 1.99% for six months. That gives you a set amount of time to aggressively pay down a high balance on your card.
Canadians should take advantage of low rates and increased savings in 2021 and clear their credit card debt ahead of what could be a less friendly rate environment in the future.