More Canadians are increasing their reliance on credit cards, with a substantial 42 percent reporting higher usage in 2025 compared to the previous year. This marks an increase from 35 percent in the prior year, according to the 2026 Consumer Debt Report by the Credit Counselling Society.
The report indicates that over half of Canadians (52 percent) are paying only slightly above the minimum on their credit card balances, suggesting a struggle to manage debt effectively.
Peta Wales, president and CEO of the Credit Counselling Society, noted that many Canadians appear "numb" to their financial situations, rather than comfortable with debt. This sentiment highlights a widespread feeling of being overwhelmed.
Nearly half of respondents (46 percent) experienced an increase in their overall debt over the past year. For those whose debt grew, 52 percent reported losing sleep, and 34 percent experienced physical illness due to financial stress.
To cope, 73 percent of Canadians have implemented lifestyle changes to manage their debt. However, a concerning 23 percent are either waiting for their debt to reach a critical point or have taken no action.
Financial strain is significantly impacting mental health, relationships, and overall outlook on life, with 27-28 percent of respondents citing these negative effects.