Credit card debt in Canada is at record levels.
According to new data from credit monitoring agency Equifax, credit card debt in Canada soared during the fourth and final quarter of 2022, rising by 15% from a year earlier and totalling more than $100 billion for the first time ever.
The rise in credit card debt comes amid high interest rates and inflation, both of which are making it difficult for Canadians to make ends meet.
In its latest credit trends report, Equifax said that overall consumer debt across Canada rose in Q4 2022, with total debt amounting to $2.37 trillion, up 6% from the same period of 2021.
Equifax added that the full effect of higher interest rates has yet to be felt on homeowners as the majority have not yet renewed their mortgages.
Non-mortgage debt levels rose 5.4% in the fourth quarter. However, consumers without mortgages saw the greatest increase in missed debt payments during Q4.
The debt payment delinquency rate among young people aged 18 to 25 rose 31% from a year earlier in Q4, according to Equifax.
