If you’ve been dealing with crippling credit card debt, you’re not alone, as Equifax Canada recently revealed that Canadians are experiencing record-breaking credit card debt across the country.
A new Equifax report reveals that, on average, the credit card balance held by Canadians at the end of September reached a staggering $2,121, which marks the sixth consecutive quarter with increased credit card use.
The average of $2,121 is a record high.
Total debt, meaning debt not just specific to credit cards, has also grown to $21,188 per person, a level of debt not seen since Q1 2020.
The findings are based on a national survey conducted by Equifax Canada.
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Canadians’ key concerns
The floodgates on stories about the economy and financial matters have opened over the past few months, with high inflation, interest rate hikes, and food costs soaring.
“Credit card usage is reaching historic highs. This can be a slippery slope for some, as it doesn’t take long to find yourself burdened by debts, which may become challenging to pay back in this economic environment,” said Julie Kuzmic, Equifax Canada’s senior compliance officer, consumer advocacy, in a statement.
Credit card debt isn’t the only economic factor Canadians are worried about.
Equifax suggests that “Canadians are feeling the squeeze” when it comes to keeping up with things like monthly bills, debt, housing payments, and retirement savings. Some Canadians are even concerned with keeping up with monthly bills like rent, utilities, and insurance.
Only half (50%) of Canadians feel comfortable about their economic outlook, down from 61% last year.
Six in 10 respondents (59%) who took the Equifax survey also said they’re using coupons and looking for more deals when grocery shopping. However, 54% of respondents suggest they are cutting back on grocery shopping altogether.
Concerns about housing are an ongoing dilemma for Canadians, and one-in-five respondents suggest they cannot find rental housing they can afford in their preferred neighbourhood or city.
Which provinces are feeling it the worst?
According to Equifax, people in Atlantic Canada and BC feel the worst anxiety about debt, at 62% and 60%, respectively. Albertans are less anxious about their finances, with about 48% indicating anxiety about debt.
Regarding job security, people in Quebec have the most concern at 49%, and Alberta again is on the lower end of that spectrum, with only 27% indicating worries about job security.
People in Quebec are also the most concerned about paying off debt (46%), and Albertans are the least concerned (29%).
“No matter where they live in Canada, and no matter how old they are, people are clearly concerned about their financial situation,” added Kuzmic.
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