Canada is experiencing its highest rate of missed credit payments since 2009, with 1.4 million people falling behind on their credit cards in the first quarter of 2025, according to a new Equifax Canada report. Soaring living costs, rising unemployment, and economic uncertainty are straining household budgets, despite Canadians reducing their spending.

The average non-mortgage debt sits at $21,859, driven largely by auto loans. Although Canadians are spending less — with monthly credit card spending down $107 on average — delinquency rates are climbing, particularly among younger Canadians.

Key findings include:

• Only 52.9% of Canadians fully paid off their credit cards in Q1, with the rate among those under 35 dropping sharply from 62.9% to 58.9%.

• The number of 18 to 25-year-olds missing payments increased by 15.1% year-over-year.

• The rate of consumers making only minimum payments also rose, signaling growing financial stress.

Ontario is experiencing the sharpest rise in delinquencies (+24%), followed by Alberta (+16%).

Despite some signs of caution and behavioral shifts among consumers, Equifax warns that persistent economic headwinds, like rising food prices and job losses, may continue to push more Canadians toward financial instability.