INFOGRAPHIC: 27.5% Of Canadians Are In Credit Card Debt Denial

Debt Denial

RateSupermarket.ca finds disconnect between debt beliefs and national average

Using a credit card to extend purchasing power is common consumer behaviour –  but while carrying a balance may be the ‘new normal’, a survey finds cardholders are often incorrect about how their own debt compares to the rest of Canadians.

RateSupermarket.ca’s Debt Denial study, which polled 6,090 credit card consumers, finds 27.5 per cent of respondents are wrong in how they perceive their debt, with 22 per cent mistakenly believing they owe less than the national average.

“We found that Canadians want to believe their credit habits are sustainable and responsible,” says Penelope Graham, Editor at RateSupermarket.ca. “However, 42 per cent of those who believe their debt is on par with the average are actually carrying more than the norm.”

Interestingly, the survey found the opposite also holds true: 35.4% of those who believe they have too much debt actually have less than their peers.

RateSupermarket Debt Denial Study 2015

To find the extent of debt denial in Canada, RateSupermarket.ca polled respondents on their credit card balances as well as their sentiments regarding their debt. The findings were then cross referenced with the average Canadian credit card balance of $2,627* to determine how cardholders’ perceptions aligned with reality.

Pro Tip: Want to know how much your credit card balance will impact your finances? Crunch the costs and determine a realistic payment timeline with our new Credit Card Debt Calculator!

*Calculated by Canada.CreditCards.com based on data from RBC Economics, Canadian Credit Trends on Oct. 31, 2014 and Statistics Canada

Additional survey findings include:

  • 63.6% of Canadians think their credit card debt is lower than average

  • 10.9% believe their debt is higher than average

  • 25.4% believes their debt aligns with the national average

  • Of those who mistakenly believe they carry an average amount of debt, 46% owe more than $8,000

  • 20.67% of total respondents reported a credit card balance higher than $5,000

  • 39% of total respondents say they are comfortable with the amount of debt they carry

Related Topics

Credit Card Debt / Credit Card News / Credit Cards / Debt Repayment / Personal Finance / Personal Finance News / RSM News

One thought on “INFOGRAPHIC: 27.5% Of Canadians Are In Credit Card Debt Denial

  1. Credit Card holders…think interest. When one owes $2627.00 on a card with an interest rate of 20%, the debt at the end of one year is $3152.40 …wait another year before paying the bill have increased to $3782.88. Much better, don’t use the card, controll the urge to buy and invest your money in a TFSA where interest money piles up on interest and you pay no income tax on the interest money money.

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