More Than Average: The State of the Canadian Credit Card Holder

Here’s good news for the average Canadian credit holder: you have not joined the ranks of bankrupt burnouts with more debts
than they can pay off.

Contrary to the common held perception of credit cards, the tiny silver things don’t always throw you into financial purgatory. Financial wellness is always a result of careful planning and discipline, and walking away from the fancy state-of-the-art lawn mower you don’t really need. (Cue in scenes from the movie Confessions of a Shopaholic.) Looking at the recent credit card statistics for Canada, you might find that precision spending is exactly what they did.

Statistics show that approximately 59 % of Canadian credit card holders (or six in ten) are well able to pay off their balances every month, and 23 % of mortgage owners picked up the pace in their mortgage payments. Results show a strong correlation between financial health and home ownership, as well as keeping a budget and sticking to it.

Fifty nine percent might just barely make the difference between a half-and-half scenario, and—well, come to think of it—it might not even really be a big deal. However, a study conducted in 2010 showed that $ 72 million worth of credit cards were in circulation in Canada by 2009, and this number has steadily increased over time. In 2008, Canadians spent a collective $ 267 billion on their credit cards.

In essence, yes, 59 % is a big number. With staggering figures well into the twelves, it definitely means something.

Although things are currently looking good for Canadian credit card holders, studies still show that Canadians could improve their financial states even further. Surveys show that 11 % of Canadians attempt to save but are largely unsuccessful. And while paying off credit balances promptly is definitely a good sign of financial health, what Canadians really ought to remember is to ask for a credit report (Genworth Financial Canada states that only 14 % of credit card holders in Canada receive their credit reports). Majority of credit card holders in Canada still have to realize that a detailed analysis of spending trends can greatly improve budget planning and long-term financial stability.