Credit card balances in Canada have hit a record high of $107.4 billion, according to the
consumer credit reporting agency Equifax (EFX).
Total consumer debt in Canada has now reached $2.4 trillion as Canadians struggle with the high cost of living amid inflationary pressures and elevated interest rates.
The data from Equifax, which covers this year’s second quarter, shows that low-income Canadians are increasingly turning to credit cards to help them with higher consumer prices and debt servicing charges.
The average credit card balance in Canada rose 9% between April and June of this year, with the largest increase seen in lower credit score segments.
Equifax said that credit card spending has been growing since the end of 2021 as government supports aimed at helping people through the Covid-19 pandemic began to be scaled back.
The stock of Equifax has gained 5% over the last 12 months to trade at $197.24 U.S. per share.
