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HomeMoney SavingHow a lot bank card debt does the common Canadian have?

How a lot bank card debt does the common Canadian have?

How a lot debt does the common Canadian carry? 

Based on a brand new report by Equifax, Canadian shopper debt has risen to $2.32 trillion, with a median debt load of roughly $21,000—excluding mortgages. These numbers symbolize a rise of 8.2% over final yr, and 6.4% between the primary and second quarters of 2022. And Canadians are utilizing bank cards extra, as there was a 6.4% improve in credit score balances from the primary quarter to the second. 

This information, although unwelcome, shouldn’t be surprising in response to some consultants. Anne Arbour is the director of strategic partnerships on the Credit score Counselling Society, an accredited non-profit charity that helps Canadians remedy their cash issues.

“Whenever you mix the best way the present tempo of inflation is affecting on a regular basis wants like meals and fuel, coupled with the impression of our post-pandemic spending on issues like journey and leisure, it isn’t shocking to see these numbers,” she says, including that BoC rate of interest hikes are compounding the difficulty. 

“Current jumps in rates of interest are additionally affecting the disposable earnings of any shopper with a variable-rate mortgage or mortgage or line of credit score, so it additionally is sensible that they could flip to utilizing much more credit score to assist bridge the hole of their sources.”

Based on shopper insolvency agency MNP Ltd, 59% of us are feeling the results of those fee will increase, and with an estimated two million Canadians renewing their mortgages inside the subsequent 12 months, extra individuals are prone to really feel the pinch. 

“Bank card spending is reaching traditionally excessive ranges,” said Rebecca Oakes, vp of superior analytics at Equifax Canada, in a press launch. “Excessive shopper demand for bank cards means a aggressive market for lenders. In consequence, the credit score limits being provided on new playing cards are a lot greater than we’ve seen in earlier intervals.”

How lengthy ought to it take to repay bank card debt?

The reply relies upon largely by yourself private circumstances. How a lot are you able to afford to repay month-to-month?

“What’s essential for anybody to know,” says Arbour, “is their month-to-month capability to make funds.” 



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