Credit card debt on the rise for young Canadians: report

A new report from Equifax shows younger Canadians are increasingly missing payments on credit cards.

The credit monitoring agency says the delinquency rate among consumers under 35 has risen by more than 18 per cent compared to last year.

Equifax points to higher interest rates and the rising cost of living as key factors. The report also highlights an overall increase in non-mortgage debt, with many Canadians relying on credit to make ends meet.

"We are seeing increases in missed payments at a much faster rate than the average," said Rebecca Oakes, vice-president of Advanced Analytics at Equifax Canada.

"We're seeing credit card balances rising because payments are reduced on some of those. And we do believe a lot of that is really linked to some of what's happening economically right now, particularly for younger individuals. So high cost of living, unemployment rising, all of those things are really kind of contributing to a bit of a challenging time."

The report also reveals that credit card balances have increased nearly 14 per cent year-over-year, putting more pressure on younger consumers. But the young adults CTV spoke to on Tuesday seem to have their credit under control.

"Yeah, I have no problem dealing with credit card debt myself. I saved up a decent amount during high school, so I got it all put away," said Ryan Gourlay.

"Honestly, I just keep track of it. I check it all the time," said Maggie Perry.

"I don't try to put too much on it at one time. See what I can pay off. I try to pay it off right away."

Credit card balances in Canada have surged by 13.7 per cent compared to the same time last year, with the average cardholder carrying more than $4,300 in debt, the highest since 2007.

"I've always kept my limit pretty low," said Pat Gray.

“Keep it under $500 only. Do small payments over time and try and pay it off and get credit score higher. Other than that, I don't put a whole lot of purchases that I don't need on one card."