New data shows 36% carry balances as many cut spending and struggle with shrinking savings
More than one in three Canadian credit card users are carrying a balance as higher living costs continue to strain household finances, new research suggests.
Fresh findings from Vividata provides a timely snapshot of how Canadians are coping with debt, arriving just days before the Bank of Canada’s next interest rate decision.
“Debt plays very different roles depending on a household’s financial situation,” said Pat Pellegrini, President and CEO of Vividata. “For some Canadians, credit cards are simply a rewards tool. For others, they’re increasingly being used to cover gaps when money runs short.”
The study found that 36% of credit card holders typically maintain an outstanding balance, often turning to their cards to handle emergencies or bridge shortfalls in income.
Consumers who carry balances are also more sensitive to price changes and more likely to reduce day-to-day spending. In contrast, Canadians with mortgages or other loans tend to prioritise discretionary expenses such as vehicles, electronics, and travel when adjusting their budgets.
The research also highlights the emotional and financial impact of debt. Among Canadians with mortgages, loans, or credit card balances:
- 58% report having less disposable income than in the past
- 49% say they frequently feel they are living paycheque to paycheque
- 51% say strict budgeting is necessary to get by
- 37% feel overwhelmed by financial obligations
- 71% say rising living costs have reduced their ability to save
- 74% say they have become more cautious about spending
Those with revolving credit card balances appear to be feeling the squeeze most acutely. Among this group, 68% say their disposable income has declined, while 53% report feeling overwhelmed by financial pressures.
Debt patterns also vary significantly by age group. Canadians aged 25 to 34 are the most likely to carry non-mortgage liabilities, including credit card balances and personal loans.
Mortgage ownership is most common among those aged 35 to 49, who make up the largest share of borrowers with home loans. This cohort is also more likely to belong to higher-income households and to have children.
Families earning $150,000 or more annually are considerably more likely than average to hold mortgages. Despite elevated property prices, many homeowners are well advanced in repayment, with roughly 60% having 15 years or less remaining on their loans.
Housing debt continues to represent one of the most significant financial commitments for Canadian households, with regional differences in remaining balances.
Among major census metropolitan areas, Kitchener has the highest average outstanding mortgage at $402,915. Toronto follows at $376,466, ahead of Hamilton at $365,759 and Vancouver at $325,647.
“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 across the country.”
The findings are based on Vividata’s SCC Study of the Canadian Consumer Winter 2026, a syndicated survey examining consumer behaviour and media habits. The study collects insights from more than 75,000 Canadians each year across over 100,000 data variables.
