Apr 3, 2026
More Canadians are leaning on credit cards to get through the month, as rising living costs continue to strain household finances.
New data from Vividata shows that 36% of Canadian credit card holders carry a balance, with many using credit to cover shortfalls when money runs tight. The findings come as broader financial pressures push more households to adjust spending and rely on borrowing.
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“Debt plays very different roles depending on a household’s financial situation,” said Pat Pellegrini, president and CEO of Vividata, in a statement. “For some Canadians, credit cards are simply a rewards tool. For others, they’re increasingly being used to cover gaps when money runs short.”
Credit becoming a financial safety valve
The data shows that for some, credit cards are shifting from a convenience to a necessity.
Among Canadians carrying debt, 49% say they are living paycheque to paycheque, while 58% report having less disposable income than before. At the same time, 51% say they need to stick to a budget just to make ends meet, and 37% say they feel overwhelmed by financial burdens.
Those carrying credit card balances report even higher levels of strain, reinforcing the idea that revolving credit is often being used as a stopgap rather than a choice.
Pellegrini said the trend reflects longer-term changes in both income growth and borrowing behaviour.
“I think there’s two things,” he told NowToronto (1). “One, wages in Canada have not kept up with the rate of inflation… and then I think debt levels, people’s attitudes about taking credit, have changed over generations.”
That gap between income and costs is forcing many households to make riskier trade-offs more regularly, particularly in higher-cost cities.
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Spending habits shifting under pressure
As financial pressure builds, Canadians are being forced to become more cautious in how they spend.
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The report from Vividata found that 74% say rising costs have made them more careful with money, while 71% say those same costs have reduced how much they are able to save.
Pellegrini described this as a shift toward what he calls “survival spending,” where managing debt takes priority over building savings.
“Instead of saving, they’re servicing their debt,” he told NowToronto, pointing to a broader change in financial behaviour among Canadians.
That shift could have longer-term implications, particularly for younger Canadians who are more likely to carry non-mortgage debt such as credit cards and personal loans.
Mortgage debt still dominates household finances
While credit card balances are a growing concern, housing debt remains the largest financial burden for many Canadians.
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The Vividata data shows mortgage ownership is concentrated among Canadians aged 35 to 49, particularly higher-income households and families. Many of those homeowners are well into repayment, with about 60% having 15 years or less remaining on their mortgage.
At the same time, the size of that debt varies significantly across the country. Among major cities, Kitchener has the highest average remaining mortgage balance at just over $400,000, followed by Toronto, Hamilton and Vancouver.
“Mortgage debt remains one of the largest financial commitments Canadians make,” Pellegrini said. “Understanding where those pressures are most concentrated helps paint a clearer picture of how housing costs are influencing financial decisions.”
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
A growing reliance on credit
For some households, credit cards remain a tool for convenience or rewards. For others, they are increasingly being used to manage day-to-day cash flow as budgets tighten.
The broader concern isn’t just the number of Canadians carrying a balance, but how normalized that behaviour has become. With nearly half of indebted households living paycheque to paycheque, credit is playing a more central role in how people navigate those rising costs.
That shift may be manageable in the short term, but it leaves less room for savings and fewer buffers if financial conditions worsen — a reality that many households are already starting to feel.
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NowToronto (1)
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
