A recent report reveals that a significant portion of Canadians have increased their reliance on credit cards, with many struggling to make payments beyond the minimum.
The 2026 Consumer Debt Report from the Credit Counselling Society highlights a troubling trend among Canadians regarding credit card usage. According to the report, nearly 42% of Canadians have reported using their credit cards more in 2025 compared to the previous year, a rise from 35%. This shift suggests a growing dependence on credit amidst economic pressures. Moreover, over half of Canadian respondents indicated that they are only making slightly more than the minimum payments, which raises concerns about their overall financial health.
The report illustrates that this reliance on credit is not indicative of comfort with debt, but rather a sense of financial numbness among Canadians. Peta Wales, president and CEO of the Credit Counselling Society, notes that nearly half of the respondents feel neutral about their financial situations when compared to the previous year, indicating a lack of positive movement in their financial wellbeing. This sense of neutrality could lead to complacency and potential financial pitfalls in the future, as many individuals are not taking proactive steps to manage their debt effectively.
As Canadians increasingly rely on credit cards, the implications for the broader economy could be significant. The rising trend of minimal payments suggests a worrying trend where individuals may be setting themselves up for deeper financial issues, particularly if unexpected expenses arise. The findings of this report could prompt policymakers to consider measures that address consumer debt levels and improve financial literacy among the population, helping Canadians to navigate their financial futures more effectively.
