Equifax Canada Survey Shows One in Four Canadians Expect to Make Only Minimum Credit Card Payments

A recent Equifax Canada survey* of over 1,500 Canadians revealed that nearly one in four Canadians say they expect to make only minimum monthly credit card payments, which may indicate increased pressure on household finances. The survey found that 25 per cent of respondents expect they will only be able to afford minimum monthly payments on their credit cards, while another seven per cent believe they are likely to fall behind. Fifty-six per cent expect to pay their balances in full each month. The findings come as 40 per cent report spending more overall than they were a year ago; more than twice the 18 per cent who are spending less. “The results point to mounting financial pressure for many households,” said Rebecca Oakes, Vice-President of Advanced Analytics at Equifax Canada. “The survey indicates that a significant percentage of Canadians surveyed (29 per cent) are using credit and savings to manage everyday expenses, while 35 per cent are cutting back on contributions to save for their future and expecting to make only minimum credit card payments. When these pressures begin to overlap, households can lose financial flexibility quickly.” As an essential partner in Canada's financial ecosystem, Equifax delivers data-driven insights into these emerging trends, enabling lenders to engage with borrowers more confidently to help them navigate changing economic conditions. Everyday costs are eroding savings and future planning The survey suggests financial impact may be moving beyond discretionary cutbacks and increasingly affecting the ability to cover essential expenses, preserve savings and plan for the future. Of those surveyed: 29 per cent are using more credit than a year ago to pay for groceries, utilities and other essential living expenses. 23 per cent are drawing on savings to cover day-to-day costs. 20 per cent say they are relying more on credit cards and lines of credit. 35 per cent have reduced contributions to savings, investments or education funds. 32 per cent have reduced spending on essential living expenses, including groceries and utilities. 44 per cent worry they are not saving enough for retirement. 41 per cent are concerned about unforeseen emergency expenses. Pulling back on spending and savings Spending is also being pulled back in discretionary areas. Of those surveyed, 67 per cent have reduced entertainment and leisure expenses, while 40 per cent have cut spending on personal care. The survey data indicates that everchanging economic conditions are contributing to more cautious borrowing behaviour, with 60 per cent of those surveyed actively avoiding taking on new debt. At the same time, 13 per cent say they are borrowing more to cover their basic living expenses, while only eight per cent are opening new credit cards or taking on new loans. Financial confidence has also weakened with 29 per cent feeling less confident in their ability to manage financial demands than they did a year ago, while 23 per cent say they feel more confident. Nearly half, 47 per cent, report feeling about the same. “Financial pressure often builds gradually, and making only the minimum payment can sometimes feel like a way to manage through a difficult month,” said Julie Kuzmic, Head of Consumer Advocacy and Compliance at Equifax Canada . “However, balances can take much longer to repay and cost considerably more in interest. Anyone seeing their balances continually rise with little hope at repayment should review payment obligations, prioritize due dates and explore...