More Canadians only making minimum payment on credit cards: TransUnion
BNN Bloomberg
Some Canadians are seeing their credit card balances grow as the cost-of-living crisis and higher interest rates eat into household budgets, a new report shows.
A TransUnion report says the number of Canadians paying only the minimum amount on their credit cards was up eight basis points to 1.3 per cent compared with last year.
Matthew Fabian, director of financial services research at TransUnion Canada, says inflationary pressures may lead consumers to turn to bank cards or personal loans to help make ends meet, and millennials and Gen Z consumers are no exception to the trend.
The report says total consumer debt in Canada was $2.38 trillion in the first quarter, compared with $2.32 trillion in the same quarter last year, and down only slightly from a record $2.4 trillion in the fourth quarter.
