Canadians are increasingly using their credit cards, especially young people, according to the report by credit analysis firm Equifax Canada, released Thursday.
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“Of all age groups, Generation Z and Millennials are the ones whose credit card spending has increased the most,” reported via press release, Rebecca Oakes, vice president, advanced analytics at Equifax Canada.
At issue is the increase in travel following the easing of restrictions related to COVID-19, combined with the meteoric rise in inflation, according to Ms. Oakes.
New card volume increased 31.2% from the first quarter of 2021 and the average credit limit issued to new cardholders is over $5,500, the highest in seven years.
The average credit card balance is up 9.5% from a year ago, but credit card balances have yet to return to pre-pandemic levels according to Equifax.
In the country, Ontario saw the largest increase in credit card spending (20.4%), followed by Quebec (18.4%).
Average consumer debt per person is $20,744, up 1.5% from the first quarter of 2021. It would be the first year-over-year increase since 2019.
The volume of first-time home buyers meanwhile fell 16.1% in the first quarter of 2022 compared to the first quarter of 2021. While first-time home buyers are struggling to keep up with prices, however, the proportion of consumers who hold multiple mortgages continues to rise.
