More Canadians Rely on Credit Cards for Everyday Expenses, Credit Report Says

A newly released credit report says that more and more Canadians are using credit cards to make day-to-day purchases as the cost of living increases. TransUnion’s Quarterly Overview of Consumer Credit for the first quarter of 2024 said defaults on loans are expected to pick up this year and into 2025. “The higher cost of living, driven by inflation, has led many Canadians to rely more heavily on credit to cover everyday expenses,” the report authors said. They wrote that the problem was made worse by “stagnant wage growth” making it difficult for Canadians to keep up with rising costs without using credit....