Credit card balances of Canadians hit an all-time high of $107.4 billion in the second quarter of 2023, according to the latest data from Equifax (NYSE:EFX) Canada.
The company’s Market Pulse report on consumer credit trends, released on Thursday, stated that card balances reached an all-time high of $107.4 billion in 2Q, while total consumer debt in Canada hit $2.4 trillion, as inflation and higher borrowing costs appear to be taking a toll on consumers.
The report also noted that average non-mortgage debt per credit-active consumer increased to $21,131.
Meanwhile, the average credit card balances per credit card consumer rose 9%, with the largest increase seen in lower credit score segments, up 13.7% year over year, although the report showed that credit card spending as a whole is finally starting to slow after increasing consistently since the end of 2021.
Equifax (NYSE:EFX) added that mortgage holders and high-income earners decreased their credit card spending the most.
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