How often do you carry a credit card balance?
When it comes to credit card use, each country in the world seems to have their own stereotype.
In many Euro nations, for instance, credit card use is not just frowned up but extremely limited. The French and Germans, as an example, each charge just $300 or less on their credit cards each year, a paltry sum by the planet's standards.
But let's go west, all the way across the Atlantic. When you reach the shores of North America, credit card spending shoots through the roof.
Everyone knows about America's well-documented affair with credit cards, but Canadians aren't much better, and it's nearly as good a bet as it isn't that you carry a credit card balance each month.
According to a new survey, nearly half of Canadians admit to always or often carrying an outstanding credit card balance each month.
*Bing: How to get rid of credit card debt
"If you don't pay off your balance every month, a credit card is really just another form of debt," Douglas Hoyes, a bankruptcy trustee and one of the people behind the survey, said in a statement.
"Let's call (a credit card) what it is: a debt card."
Indeed, for every rewards point and cash-back incentive that make credit cards great to use, there's no denying the danger of swiping them if you can't meet your monthly obligation.
And these are risks that Canadians are uniquely exposed to. Remember those sub-$300 credit card charges for French and German consumers? That's on an annual basis, too.
Canadians, by contrast, charge nearly $7,500 per year on their cards, according to a recent report.
Despite our credit card use, Canadians rarely seek professional help or visit a credit counsellor. According to the survey, only ten per cent have even considered talking to a credit counsellor, despite a further 12 per cent of Canadians admitting they can only make the minimum payment on their cards each month.
How often do you carry a balance on your credit card?
Posted by: Trix | Jan 15, 2022 12:35:28 AM
There is really nothing wrong in using the credit card, you would not get indebted until the last minute of your life by using credit card too. You only need to be a responsible borrower who is aware of his/her obligations.
Posted by: Really !!! | Jan 15, 2022 2:15:16 AM
Average of $7500.00 per year ?? Is that all !! Over the past 11 years, I've averaged $20,600. on my 7 credit cards. I'm down to 6 cards now. In the 39 years since I've owned 1 or more cards, I've averaged $9,500. per year. Guess what ? ABSOLUTELY NO CREDIT CARD DEBT BALANCE !! And that's on top of a $15K Line of Credit which also has ZERO balance. Credit balances are paid off every single month. NO interest charges for at least the past 30 years. Oh, and I do NOT pay to use the cards either, except for one at $29. per year. So why have credit cards ? It's all about the perks, be they air miles or cash on the card. It's worth free stuff and FREE stuff is better than NO stuff or PAID stuff. Bottom line... It's ALL about control.
Posted by: Cassy | Jan 15, 2022 7:13:40 AM
I wish credit card use was also limited in the US, because I cannot watch our poor Americans who first go below their credit card limits and then, in order to make payments they apply for cash advance to cover expenses. This is very silly. Very sad to hear that same thing is going on in Canada as well. I wonder why too many people do not understand one simple thing: If you don't pay off your balance every month, a credit card is really just another form of debt. Thank you for the post. Hopefully some of us will get to reconsider using credit cards often and not making payments.
Posted by: Bob | Jan 15, 2022 8:48:40 AM
When your work only pays 12.50$/hr you can't help but take any credit offer to just get by these days. I can only pay interest plus a bit and they just keep increasing my limit.
Posted by: mascaren | Jan 15, 2022 10:28:33 AM
I have had several credit cards simultaneously (probably 6) over the last 42 years.I have only used them when I made a big purchase,in order to get the warranty extension.I have ALWAYS paid off the complete balance when the bill arrived,except on 2 occassions,where I paid it off in two installments.I must have paid less than $10.00 worth of interest on all my credit cards over 42 years.
I have not had any fancy high-paid jobs;but I followed a simple principle all my life......If you can't afford it,or don't NEED it,DON'T BUY IT.
It is all about controlling your spending.Live within your means..............I own everything I have,and I take great pride in that.
If you can manage with a smaller car/house/TV,don't buy a bigger one to impress the neighbours........nobody really cares.Buy what you can afford,not what the bank talks you into buying..............they are only telling you what you want to hear.Most debt triples by the time you pay it off,and that is if you pay more than the minimum payments.
Posted by: John | Jan 16, 2022 1:21:22 PM
I have 9 credit cards (each used for a different purpose), and since the 1st day (40 years ago), I have NEVER carried a balance on any card. To do so would be utterly stupid. People that say they have to carry a balance to get by are fooling themselves. If you can't afford it, don't buy it.
Posted by: ABgurl | Jan 20, 2022 10:09:39 AM
NEVER NEVER NEVER!!!! ( and I've had 2 cards for more than 30 yrs ) I agree with the last statement John above made. Paying interest is akin to standing on a street corner and handing out your hard-earned dollars to those walking by just for the hell of it even though it will leave you financially strapped.