Published August 24, 2026 · Canadian Money Brief
A new survey from Equifax Canada puts a hard number on something a lot of us have felt creeping up all year: credit cards are doing more of the heavy lifting in Canadian budgets, and fewer people are paying them off. Of more than 1,500 Canadians surveyed, a quarter said they expect to make only the minimum monthly payment on their credit card, and another 7% think they'll fall behind entirely. That leaves just over half — 56% — who expect to pay their balance in full each month.
The survey also found that 40% of respondents are spending more overall than they were a year ago, more than double the 18% who say they're spending less. Nearly 3 in 10 said they're leaning more heavily on credit cards to cover essentials like groceries and utilities, and close to a quarter are dipping into savings to keep up with everyday costs. More than a third have cut back on contributions to savings, investments, or education funds to make room in the budget.
What it means for you: if you're only making minimum payments, the credit card isn't shrinking — it's mostly paying for itself. On a typical card charging around 20% interest, a minimum payment often covers little more than that month's interest plus a token amount of principal, which is why balances that "should" be manageable can take years to clear.
Why this is showing up now
Equifax's researchers pointed to mounting financial pressure on households, and the timing lines up with what we've been tracking here all month: a hot July inflation print, gas prices holding above $1.65/L for weeks, and now the retaliatory tariffs set to land September 8 on goods including appliances, steel, and dairy. None of those show up as one big shock — they show up as a grocery bill that's $40 higher than it used to be, paid for on a card instead of out of chequing.
The strain wasn't spread evenly. The survey found it was sharper in households with children and among adults under 55 — exactly the group least likely to have built up a large emergency fund yet, and most likely to be carrying a mortgage renewal or daycare costs at the same time.
The real cost of "just the minimum"
Minimum payments are typically calculated as a small percentage of your balance (often 2–3%) plus any interest owed, or a flat minimum dollar amount, whichever is higher. Here's roughly what that looks like on a $5,000 balance at 20.99% interest, paying only the minimum each month:
| Payment strategy | Time to pay off | Total interest paid |
|---|
| Minimum payments only | ~13–15 years | $5,000–$6,500+ |
| Fixed $200/month | ~28 months | ~$1,150 |
| Fixed $400/month | ~14 months | ~$550 |
Figures are illustrative estimates based on a standard 21% APR minimum-payment formula (interest plus 2% of balance) and are meant to show the shape of the problem, not a quote for any specific card — check your card issuer's actual terms.
If you're one of the 25%, three moves worth making
1. Call your card issuer before you miss a payment, not after. Most major Canadian issuers have hardship or reduced-interest programs, but they're generally easier to access if you reach out proactively rather than after a missed payment shows up on your credit report.
2. Look at a balance transfer or consolidation loan. A 0%-or-low-rate balance transfer card, or a personal loan at a lower fixed rate than your card's 20%+, can cut years off a payoff timeline — the math above is mostly a story about interest rate, not willpower.
3. Separate "using credit for float" from "using credit for debt." If you're putting groceries on a card and paying it off in full two weeks later, that's cash-flow timing, not debt. The survey's real warning sign is the 25% who don't expect to pay it off at all — that's the group where a balance compounds instead of resetting to zero.
We'll keep tracking the Bank of Canada's September 2 rate decision and the September 8 retaliation tariffs, both of which will move the cost-of-living side of this equation further before year-end.
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