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Bank of Canada data shows debt arrears hit a post-2015 high — and credit cards are the first domino to fall - MONEY.CA
If you've been leaning on your credit card a little hard lately, you're not alone.
New Bank of Canada (BoC) data shows that 2.23% of indebted households were 60 or more days behind on a payment in at least one credit category in the second quarter of 2026. That's the highest share in data since 2015. It tops the previous peak of 2.18% in mid-2019 and is well above the 1.41% recorded in 2021, when layoffs and furloughs were abundant due to the pandemic.
The number may seem small, but the BoC's own research suggests the trouble often starts somewhere commonplace: your credit card statement. Here's what the data reveals, why it's important to track card debt and what to do if your balance keeps inflating.
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What is the Bank of Canada seeing?
BoC tracks household financial stress every quarter, using TransUnion data and its own calculations.
Credit card arrears are the share of accounts that are at least 90 days past due, which has reached 0.80% in Q2 2026, nearly double the 0.44% seen in early 2021.
Other types of debt that are also hitting series highs include:
Auto loans at 0.87>#/p###
Instalment loans at 2.95>#/p###
Mortgage arrears are still low at 0.23% — however, that figure has nearly doubled since 2023.
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Why are credit cards the early warning sign?
Mortgages are usually the last bill people stop paying, and because of this, BoC notes that missed payments on other types of debt can be an initial sign of financial distress.
A BoC staff paper from February, Consumers' Path to Mortgage Delinquency, investigated how this unfolds. Using TransUnion data from 2015 to 2024, researchers found that mortgage holders begin using more of their available credit roughly two years before they make their first late mortgage payment. This manifests in missing payments on consumer credit, especially credit cards, before the pattern accelerates in the final six months.
In other words, a maxed-out card isn't just a sign of a tight month. It can be the first link in a chain of increasingly fraught personal finances.
Who is most at risk?
According to the BoC data, more than 1 in 8 borrowers (13.16%) are using more than 80% of their credit card limit. The share differs by group:
Borrowers without a mortgage at 14.36%
Mortgage holders at 9.89%
Late payments show a similar split. Among borrowers without a mortgage, 3.12% were at least 30 days late on a card, compared to 1.84% of mortgage holders.
Age and income are important factors as well. BoC research published in September found that between 2020 and 2025, spending outpaced income gains for younger and lower-income households, while older and higher-income households fared markedly better.
However, this isn't an existential crisis impacting the majority of Canadian households. The Bank's 2026 Financial Stability Report says households overall remain in stable financial condition. Instead, the pressure is concentrated, which is why individual warning signs matter.
What does carrying a balance actually cost?
While making the minimum payment keeps your account in good standing, it doesn't free you from the shackles of debt.
The Financial Consumer Agency of Canada (FCAC) illustrates this with its Credit Card Payment Calculator. In this example, a $1,000 balance paid at the minimum takes 10 years to clear and costs a staggering $798.89 in interest. Meanwhile, paying a fixed monthly amount clears the same balance in 11 months, with only $91.62 in interest.
Your statement already shows part of this math. Since September 2010, federally regulated lenders have been required to display an estimate of how long it will take to pay off a balance through minimum payments only.
