Credit card debt in Canada has hit a record high as consumer prices remain inflated across the
country.
A consumer survey by Equifax Canada has found that the average credit card balance held by
Canadians was at a record high of $2,121 at the end of September this year.
Equifax also found that the average non-mortgage debt among Canadians was at $21,188, a
level not seen since the global pandemic began in the first quarter of 2020.
The rise in debt comes as the inflation rate in Canada sits at an annualized 6.9%, a 30-year
high and more than triple the Bank of Canada’s 2% target.
The Equifax survey found that more than half of Canadians are worried about paying bills such
as rent, utilities and insurance.
Equifax Canada said that the average credit card debt fell during the pandemic, but that credit
card utilization has now increased for six consecutive quarters.
Equifax warned that many Canadians could have difficulty repaying debt in the current
economic environment.
