How often do Canadians use thier credit cards?
A staggering bowl from statistics.
A new TransUnion report presents data on Canadians' consumer debt. Consumer debt is all the money owed by consumers. Companies' debts and government debts are not counted.
By April 2023, Canadians' total consumer credit had reached the CAD 2.32 trillion mark, breaking the previous record. Never before have Canadians owed so much.
These record numbers are attributed to two main reasons: high interest rates and unrelenting inflation.
Also, the number of Canadians who decided to use credits has become 30.6 million people out of Canada's population of 39.4 million. It turns out that 78% of the population make up this statistic. That's a 2.9% increase over last year.
Experts at TransUnion say credit growth is fueled by Generation Z consumers entering the credit market and migrants coming to Canada.
The increase in credit has led to an increase in minimum monthly payments, and this inevitably puts pressure on consumers.
The average monthly payment rose to CAD 436, up 43% from a year ago. And the average monthly payment on mortgages rose to CAD 2,032, up 15% from a year earlier.
The average payment for credit cards was 2.6 times over the minimum required.
"his is a positive sign indicating healthy consumer behaviors towards their payment obligations," TransUnion said in a press release.
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Overall, experts concluded that the financial situation of Canadian credit consumers has improved since the quarantine, aided by savings accumulated during the pandemic and a strong job market.
