Attention, fellow Canadians! Your wallets might be feeling a bit lighter these days, and there’s a good reason why. Credit card balances across the country have hit an all-time high, with the average cardholder now owing over $4,300. That’s like carrying around the cost of a fancy new smartphone in debt!
But why should you care? Well, this isn’t just about maxed-out plastic. It’s a sign of broader financial strain affecting many of us. With interest rates higher than your favorite TikTok star’s view count and unemployment on the rise, more people are turning to credit cards to make ends meet. Young Canadians, in particular, are feeling the squeeze – it’s like trying to adult on hard mode!
Here’s where it gets really interesting (or scary, depending on how you look at it). The total amount Canadians owe has surpassed $2.5 trillion. That’s trillion with a “T,” folks! Credit card debt makes up a whopping $122 billion of that. To put it in perspective, that’s enough to buy everyone in Canada a lifetime supply of poutine – though we wouldn’t recommend it.
So, what’s next? While the Bank of Canada has started to lower interest rates (finally!), they’re still pretty high. And if you’re a homeowner, brace yourself – a wave of mortgage renewals at these higher rates is coming. It’s like a financial game of musical chairs, and nobody wants to be left standing when the music stops. The silver lining? Despite all this, mortgage delinquency rates are still lower than before the pandemic. So, while times are tough, Canadians are proving to be a resilient bunch. Stay savvy, friends!
