Barrie, Ontario, ranks highest in credit card debt across Canada

Barrie, Ont., residents have the highest credit card debt in Canada compared to other cities, with an average outstanding balance of $3,521.54, according to a new analysis by Money.ca. The study, which looked at data from Canada Housing and Mortgage Corp., found that seven out of the top 10 cities with the most credit card debt are in Ontario.

Residents in these cities have outstanding credit card balances ranging from $3,264.93 to $3,521.54 per month. Barrie residents topped the list with $3,521.54, followed by St. John’s, N.L., and Toronto, Ont.

The report highlighted the recent spike in living costs as a reason why households may be turning to credit cards to cover essential purchases. Romana King, senior editor at Money.ca, emphasized the importance of having a plan to pay back borrowed money to avoid getting stuck in a cycle of debt.

A separate study by NerdWallet Canada found that 69% of Canadians have used their credit cards to pay for essential goods and services over the last year, with 31% not paying their balance in full each month. The study also revealed that 55% of respondents currently have credit card debt, up from 43% the previous year.

Georgia Rose, credit card expert at NerdWallet, noted that many Canadians are feeling the impact of higher prices for goods and services, leading to increased credit card use for basic needs. She advised treating credit cards like cash and being cautious about accumulating debt that may take a long time to pay off.

Overall, the data suggests that Canadians are relying on credit cards to cover essential expenses, but the long-term implications of this trend could lead to financial challenges for many households. It is essential for individuals to manage their credit card debt responsibly and seek financial advice if needed to avoid falling into a cycle of debt.