One in four Canadians said they can only afford to make the minimum credit-card payment each month [1].
These findings highlight a growing fragility in household finances across the country. As the cost of living rises, a significant portion of the population is relying on high-interest debt to maintain basic standards of living, which could lead to long-term financial instability.
Equifax Canada conducted the survey among more than 1,500 Canadians [3]. The data shows that 25% of respondents are limited to making only the minimum payments on their credit cards [1]. This suggests that a quarter of the surveyed population is unable to pay down their principal balances effectively, potentially trapping them in a cycle of debt.
Beyond payment struggles, the survey found that 29% of respondents are putting essential purchases on their credit cards [1]. These necessities include basic needs such as groceries, and utilities. Using credit for recurring daily expenses often indicates that monthly income is insufficient to cover the basic cost of living.
Financial strain is not evenly distributed across all age groups. The survey found that Canadians under 55 report greater financial pressure across most categories compared to older demographics [2]. This trend suggests that younger and middle-aged adults are bearing a disproportionate share of the current economic burden.
Rising costs continue to prompt Canadians to rely more heavily on credit cards for everyday expenses [2]. While credit can provide a short-term bridge, the reliance on minimum payments and the use of cards for utilities indicates a systemic pressure on the average household budget.
“One in four Canadians said they can only afford to make the minimum credit-card payment each month”
The shift toward using credit for essential utilities and groceries indicates that a significant segment of the Canadian population is experiencing a liquidity crisis. When 25% of a population can only meet minimum payment requirements, it suggests that household debt is becoming unsustainable, potentially signaling a broader economic slowdown as consumer purchasing power is consumed by interest payments rather than goods and services.
