A growing number of Canadians are using credit cards to pay for everyday expenses such as groceries and utilities, a new survey from financial website NerdWallet has found.
Seven in 10 Canadians (70%) said they have used a credit card to pay for essentials items within the last year.
Of the people who reported a change in their credit card habits, 68% said it was because of the increased costs of goods and services.
The latest Consumer Price Index (CPI) reading showed an unexpected rise in inflation during April to 4.4%, according to Statistics Canada.
Among Canadians who use a credit card, 58% said they pay the balance in full each month. Another 40% said it will take them six months or longer to pay off their debt, while 11% said they were unsure how long it will take them to clear their credit card balance.
The survey found that members of Generation X, people aged 43 to 58, are most likely to use a credit card to cover everyday expenses at 76%.
The survey was conducted online by Harris Poll on behalf of NerdWallet from April 3 to 5, 2023 among 1,025 Canadian adults aged 18 and older. The data is considered accurate to within +/- 3.8 percentage points.
