Opinions and proposals are unbiased and merchandise are independently chosen. Postmedia might earn an affiliate fee from purchases made by hyperlinks on this web page.
Article content material
With the greater value of residing, extra Canadians are counting on credit score for on a regular basis purchases and turning into saddled with extra debt than ever earlier than.
NerdWallet Canada’s 2024 Canadian Client Credit score Card Report discovered 69 per cent of Canadian adults used credit score for important purchases up to now 12 months, with 31 per cent of respondents indicating they don’t repay their full bank card invoice every month.
Article content material
Moreover, greater than half of respondents say they’ve bank card debt, with 51 per cent indicating it would take at the very least six months to repay.
The upper value of residing additionally emerged as the highest issue among the many 53 per cent of Canadians whose bank card habits modified up to now 12 months, with different main causes being sudden massive purchases, change in employment and better housing prices.
A report from Equifax in 2023 discovered Canadians are going through $116.2 billion in bank card debt alone as complete shopper debt hit $2.45 trillion.
“The rise in bank card debt is being pushed by a number of elements, together with the rising value of residing, greater rates of interest, and the financial slowdown,” Rebecca Oakes, vice-president of superior analytics at Equifax Canada, mentioned in a information launch on the time.
“These elements are placing a pressure on family budgets, making it troublesome for a lot of Canadians to make ends meet.”
Advisable from Editorial
This NerdWallet report echoes earlier information from TransUnion Canada, which discovered 31.8 million Canadians are utilizing at the very least one credit score product, and Gen Z credit score balances have spiked some 31 per cent.
“Inflationary pressures might lead shoppers to show to bankcards or private loans to assist make ends meet, and Millennials and Gen Z shoppers are not any exception,” Matthew Fabian, director of economic providers analysis and consulting at TransUnion Canada, mentioned in a information launch.
• Electronic mail: bcousins@postmedia.com
Bookmark our web site and help our journalism: Don’t miss the enterprise information you have to know — add financialpost.com to your bookmarks and join our newsletters right here.
Share this text in your social community
