Twenty-five per cent of Canadians are planning to only make minimum monthly credit card payments, according to a new surveyed that polled more than 1,500 adults. The survey, conducted by Equifax Canada, also found seven per cent of respondents expect to fall behind on their credit card payments. Fifty-six per cent expect to pay their full balances each month. “The survey indicates that a significant percentage of Canadians surveyed (29 per cent) are using credit and savings to manage everyday expenses, while 35 per cent are cutting back on contributions to save for their future and expecting to make only minimum credit card payments,” said Rebecca Oakes, vice president of advanced analytics with Equifax Canada, in a news release. “When these pressures begin to overlap, households can lose financial flexibility quickly.” Wendy Brookhouse, a financial planner, said people should consider three things when looking at their spending. “One, is it worth. Do I need it right now. And three, am I doing it for the right reasons?” Brookhouse said. According to the survey, 40 per cent of respondents said they are spending more overall than they were a year ago. Twenty-nine per cent are using more credit to pay for groceries, utilities and other essentials. Sixty-seven per cent of respondents have cut back on entertainment and leisure expenses while 40 per cent have reduced their personal care spending. “Financial pressure often builds gradually, and making only the minimum payment can sometimes feel like a way to manage through a difficult month,” said Julie Kuzmic, head of consumer advocacy and compliance with Equifax Canada. “However, balances can take much longer to repay and cost considerably more in interest. Anyone seeing their balances continually rise with little hope at repayment should review payment obligations, prioritize due dates and explore options with their lenders or a reputable credit counsellor before their financial situation limits their options.” The survey found households with children and people under the age of 55 are facing the biggest financial pressures. With files from CTV News Atlantic’s Vanessa Wright
