Credit Report Shows Increasing Reliance of Canadians on Credit Cards for Daily Expenses
A recent credit report reveals that an increasing number of Canadians are turning to credit cards for day-to-day purchases due to the rising cost of living.
According to the authors of the report, “The higher cost of living, fueled by inflation, has prompted many Canadians to rely more on credit to cover their everyday expenses.”
They also noted that “stagnant wage growth” has compounded the issue, making it challenging for Canadians to keep up with rising costs without resorting to credit.
The report warns of a rise in defaults in 2024 and beyond, especially among vulnerable borrowers, due to the ongoing economic conditions.
While delinquency rates have not spiked significantly, there has been a noticeable increase in missed payments on credit cards and unsecured loans.
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