1 in 4 Canadians Only Make Minimum Credit Card Payments

In a recent CBC News report on the Equifax Spending Survey, one in four Canadians indicated they can only afford minimum credit card payments amid rising costs for groceries and utilities. The findings, drawn from 1,532 adult respondents surveyed by Leger between July 17 and July 19, show 29 per cent using credit and savings for everyday expenses while 25 per cent expect to make only minimum monthly payments. These pressures directly affect Canadian households through higher interest costs and reduced financial flexibility at a time when the Bank of Canada holds its overnight rate at 2.25 per cent.

Equifax Survey Reveals One in Four Canadians Limited to Minimum Credit Card Payments

Ottawa, Ontario – August 7, 2026 — The Equifax Spending Survey, released Thursday evening, found 25 per cent of respondents expect they will only be able to afford minimum monthly payments on their credit cards. Seven per cent believe they are likely to fall behind on credit card payments, while 56 per cent expect to pay their balances in full each month. Canadians under 55 face more financial strain across nearly every category measured in the poll.

Survey Details — The Story

Twenty-nine per cent of respondents reported 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. Forty per cent of all respondents said they were spending more than a year ago, with 42 per cent of those spending more identified as younger than 55. Twenty-three per cent are using savings to pay for day-to-day needs, 20 per cent relied on credit more than last year, and 13 per cent are borrowing money elsewhere to cover basic living expenses.

The survey reveals a notable confidence gap, with 29 per cent reporting both greater use of credit for essentials and diminished confidence in handling financial demands compared to the previous year. This signals growing unease among Canadians about their economic stability, potentially leading to more cautious or altered spending patterns. Visible adjustments include 67 per cent reducing entertainment and leisure outlays alongside 40 per cent trimming personal care expenses. These trade-offs highlight how households are reallocating resources to cover necessities, reflecting broader shifts in consumer behaviour amid persistent cost pressures.

Debt Levels and Bank of Canada Policy — Canadian Context

Equifax Canada Market Pulse data show total consumer debt climbed to $2.62 trillion, up 3.4 per cent year-over-year, while average non-mortgage debt per consumer rose to $22,321, an increase of $511 from a year ago. The non-mortgage delinquency rate reached 1.63 per cent, up 14 per cent year-over-year, with stress concentrated in younger households. The Bank of Canada held its target for the overnight rate at 2.25 per cent on June 10, 2026, marking the fifth straight decision without change, as CPI inflation stood at 2.8 per cent in April 2026.

Household Finances Under Pressure — Impact on Canadians

Canadians younger than 55 are more likely to use credit for living expenses than older respondents. Those more likely to make only minimum payments include people younger than 55, those who have children, or both. Respondents 55 or older remain more likely to pay their balance in full each month. Sixty-seven per cent cut back on entertainment and leisure expenses, and 40 per cent reduced personal care spending. These patterns reduce disposable income for families already managing high household debt loads tracked by the Bank of Canada.

The generational divide in financial resilience leaves younger households particularly exposed when housing costs intersect with stagnant wage growth, forcing reliance on high-interest credit to bridge gaps in childcare and mortgage renewals that older cohorts largely avoided. First-time homebuyers and renters face compounded strain as elevated shelter expenses erode buffers, turning what was once discretionary spending into essential borrowing and accelerating the shift toward minimum payments that compound at rates exceeding 20 per cent annually.

Practical implications for Canadian families include diminished capacity to absorb unexpected costs, with under-55 households carrying balances that extend repayment timelines dramatically and erode long-term wealth accumulation compared to the 55-plus group that maintains full-balance habits. This pattern risks entrenching inequality, as parents in this cohort juggle overlapping obligations that limit mobility and delay milestones such as home ownership or family expansion.

Rebecca Oakes of Equifax notes that overlapping pressures cause households to lose financial flexibility quickly, underscoring how sustained credit dependence for essentials can trigger broader economic ripple effects through reduced consumer activity in local communities across the country.

Expert Reactions — Reactions and Analysis

Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, stated: "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." She added: "When these pressures begin to overlap, households can lose financial flexibility quickly." Julie Kuzmic, head of consumer advocacy and compliance at Equifax Canada, noted that balances can take much longer to repay and cost considerably more in interest when only minimum payments are made.

Financial experts stress the importance of early intervention when debt patterns emerge. Kuzmic recommends that those noticing rising balances review their payment obligations, prioritise due dates, and seek guidance from lenders or a reputable credit counsellor to prevent their options from narrowing. This measured approach can limit long-term interest burdens. Brookhouse provides Canadians with a practical three-question framework to evaluate purchases: determining if an item is worth the cost, whether it is needed immediately, and if the motivation aligns with sound reasons. Applying these questions regularly may help adjust behaviour and reduce reliance on credit during periods of economic strain.

Cost of Living and Savings Trends — The Bigger Picture

MNP reported last month that three in five Canadians said at least half of their income is already committed to bills, debt payments and regular expenses before it arrives. Around one-third said most of their paycheque is already committed before it arrives. Canada's credit card interest rates commonly exceed 20 per cent annually, making carried balances expensive. The overlap of higher spending, lower savings contributions and minimum payments mirrors patterns seen in previous periods of elevated Bank of Canada rates.

Canada's household debt-to-income ratio has climbed steadily over recent decades, mirroring earlier high-rate cycles where borrowing supplanted saving for day-to-day needs and produced similar overlaps of elevated spending alongside shrinking contributions to future security. The current structural shift, with 61 per cent reporting at least half their income already committed, echoes patterns from past tightening periods but now affects a larger share of younger workers whose non-mortgage debt averages have risen by hundreds of dollars year-over-year.

Retirement planning faces direct pressure as 35 per cent cut future savings contributions while expecting to rely on minimum payments, a combination that historically prolonged recovery from economic stress and left cohorts with thinner cushions entering later life stages. This trend widens the gap between those who maintained pre-pandemic saving rates and those now drawing down reserves or turning to credit for essentials amid persistent cost pressures.

Equifax Market Pulse data showing total consumer debt at 2.62 trillion dollars highlights how the move from saving to borrowing for basics risks amplifying vulnerability when rates remain elevated, much as previous cycles demonstrated slower deleveraging among households that prioritised immediate needs over long-term buffers.

Economic Outlook and Household Strategies — What Happens Next

Financial planner Wendy Brookhouse advised Canadians to consider whether a purchase is worth it, whether it is needed right now, and whether it is being made for the right reasons. Equifax officials recommend that anyone seeing balances continually rise should review payment obligations, prioritise due dates and explore options with lenders or a reputable credit counsellor. The Bank of Canada expects inflation to hover close to 3 per cent in coming months before easing toward the 2 per cent target, which will continue to shape household borrowing costs.

At upcoming Bank of Canada decisions, attention will centre on whether inflation near 3 per cent prompts further holds at the 2.25 per cent overnight rate or allows measured easing toward the 2 per cent target, directly influencing how quickly credit card balances at over 20 per cent annual interest can be reduced for those making only minimum payments. Persistent inflation would extend the cost burden on cardholders, while any cut could offer modest relief yet still leave minimum-payment behaviour damaging credit scores and limiting future borrowing capacity for years.

Credit counselling through non-profit Canadian options provides a structured path for reviewing obligations and prioritising due dates, as recommended by Equifax, helping households avoid the compounding interest that turns short-term shortfalls into prolonged debt cycles. Practical budgeting approaches, such as applying Wendy Brookhouse's three questions to each expense, encourage deliberate choices that preserve flexibility amid the 1.63 per cent non-mortgage delinquency rate now rising most sharply among younger borrowers.

Rate reductions would ease immediate carrying costs for existing balances yet offer limited protection if inflation lingers, underscoring the value of early intervention through reputable counsellors to rebuild resilience before delinquency patterns spread further across the consumer debt landscape.

The survey results point to mounting financial pressure for many households, particularly those under 55, and underscore the need for Canadian families to monitor credit use closely as interest rates remain elevated and everyday costs stay high.

By Alex Thompson, Staff Writer

This article was produced with AI-assisted research and editorial support. Reporting is based on sources cited in the article.