Kelowna has risen to fifth place in Canada’s credit card debt ranking, according to a financial analysis by Money.ca.
The average outstanding balance per capita is $3,394. The finding is part of a broader study into the nation’s credit habits across various metropolitan areas.
Barrie, Ont., leads the pack with the highest average credit card debt per capita ($3,521), followed by St. John’s, Newfoundland ($3,451), Toronto ($3,428), and Peterborough, Ont. ($3,405), rounding out the top five.
According to Romana King, senior editor at Money.ca, the surge in living costs has spurred many Canadians to resort to short-term credit solutions, such as credit cards, to navigate immediate financial challenges.
“Most people will use short-term forms of credit, like credit cards when trying to solve an immediate cash flow problem,” King explained.
She emphasized the importance of responsible credit card usage such as low-interest credit cards, considering a consolidation loan, and going on a spending diet.
“There’s nothing wrong with using a credit card for an unexpected expense,” King said. “The key is to have a plan on how you will pay back that borrowed money.”
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