This year, consumers used an average of $1,144 on their primary credit card —a decrease of $11 from a year ago. Average monthly spending has decreased by $23 per month over the past five years. Cash, debit cards, and other non-credit card spending are all up 51% this year.
Among alternative lending options, personal loans were the most popular – considered by 21% of customers looking to make a large purchase – followed by BNPL at 17%. These borrowing options are increasingly attracting interest due to reasonable fees and competitive interest rates.
The study also points to worsened financial health among consumers, with 54% of credit card users now considered to be in financial distress —a year-on-year increase of 9 percentage points.
Three tenths (31%) of Canadian credit card users report having revolving debt on their main cards, up from 24% in 2021. One fourth (24%) of credit card users say their financial situation is worse in 2022 than it was the year before.
The satisfaction with product features among indebted cardholders declined in 2022, counter to general trends.
