In the last 3 months of 2016, Canadian households increased their debt by $30 billion to $2,028 billion with revolving credit card debt totaling $596 billion of that amount. The average credit card debt carried by each Canadian was reported to be $3,954.
Despite there being fewer active credit cards, Canadians are borrowing more on the cards they have and many are struggling to manage their credit card debt and are simply using them to “stay afloat”.
Carrying a balance on a credit card or missing payments both negatively impact an individual’s credit score and the ability to borrow in the future. The amount of total available credit that an individual uses (the percentage utilization) also impacts the credit score.
Missing credit card payments, maxing out available credit and using credit to “stay afloat” are all signs of future financial difficulties. Hardie & Kelly Inc is a Licensed Insolvency Trustee providing debt counselling to consumers.
Call Hardie & Kelly Inc. at 403-777-999 for a free consultation on options to resolve debt.Previous: "Consumer Insolvencies jump 43% in Alberta April through June 2016" Next: "Rising Interest Rates and Mortgage Renewal"