In light of Canada’s progress towards reopening, a financial tech company analyzed the credit reports of nearly 1 million Canadians.
The study, conducted by Borrowell, compared 20 Canadian cities and how consumers use debt and credit cards. A key finding was that Monctonians are far more prone to throw purchases on their credit cards compared to many other communities.
Credit utilization, the amount owed on credit cards in ratio to the card limit, was highest in Moncton with 54%. For reference, the average in Canada is 43.5%, while the recommended amount is a far lesser 30%.
In addition, Monctonians keep an average revolving balance of nearly $6,500, which is below the Canada-wide average of $10,361.
The findings come as Canadians prepare to indulge in the everyday expenses that they avoided during the pandemic.
“Naturally, many Canadians will be increasing spending on food, clothes, social activities, travel, and more as the country gradually opens up to a new normal,” says Andrew Graham, co-founder and CEO of Borrowell. “But they should be cautious about ‘revenge spending’ after the past 16 months.”
Instead, Canadians are advised to emerge from their pandemic lifestyles with caution towards tacking on any more debt.
