Credit card debt in Canada is at record levels.
According to new data from credit monitor Equifax, credit card debt in Canada soared during the fourth and final quarter of 2022, up 15% from the previous year and totaling more than $100 billion for the first time.
The increase in credit card debt comes amid high interest rates and inflation, both of which make it difficult for Canadians to make ends meet.
In its latest credit trends report, Equifax said overall consumer debt across Canada increased in Q4 2022, totaling $2.37 trillion in debt, up 6% from the same period in 2021.
Equifax added that the full effect of the higher interest rates is yet to be felt by homeowners as the majority have not renewed their mortgages.
The level of non-mortgage debt rose 5.4% in the fourth quarter. However, consumers without a mortgage saw the biggest increase in missed debt payments during Q4.
Delinquent debt service delinquency rates among young people aged 18 to 25 rose 31% over the previous year in Q4, according to Equifax.