A poll conducted by Pollara for the Bank of Montreal (BMO) shows that 46% of Canadian credit card holders currently carry debt on their cards, and 30% of them do not pay their bill every month. The poll also revealed that, on average, 28% of respondents began 2015 with an additional debt of $1,192 that they had accumulated over the holidays.
Although 51% of those surveyed said they pay off their entire credit card balance every month, 30% carry a balance from one month to the next, and 32% admit that they do not keep track of their credit card purchases and only know how much they owe when their statement arrives. One quarter (26%) say they often have to use all of their available funds to pay off their credit card bill, and then end up incurring additional debt to pay for other expenses.
"Credit cards are a popular payment tool for Canadians; however, unchecked spending habits can result in getting stuck in continuous monthly debt cycles that can hamper near and long term financial goals," comments Nick Mastromarco, managing director of North American retail payments at BMO. "Utilizing a credit card as a payment tool as opposed to a borrowing tool is crucial to managing household finances and ensuring households are living within their means."
