Canadian households are carrying record credit card balances even as broader debt-to-income measures show signs of easing, according to new data that credit counsellors say masks growing strain among borrowers who are falling behind.
Statistics Canada reported on September 11 that household debt as a share of disposable income fell from 178.6 per cent to 176.4 per cent in the second quarter, the largest quarterly drop since the third quarter of 2024, while the household saving rate edged up to 3.7 per cent. On the surface, that suggests households collectively are managing their obligations better relative to income.
Debt Piles Up Even as Ratios Improve
But credit card balances themselves kept growing. Equifax Canada data cited by the Credit Counselling Society (CCS) shows credit card debt rose to $134.2 billion in the second quarter, up from $130.6 billion in the first. At the same time, average hourly wages grew just 2.0 per cent year-over-year in August, the slowest pace since November 2017 outside of 2021, meaning debt is growing faster than the paycheques many households rely on to pay it down.
CCS, a national non-profit that provides free credit counselling, says the strain is already visible in its own client data before it shows up in national statistics. Inquiries to the organization rose almost 20 per cent between August 2025 and August 2026, and debt loads among those seeking help climbed nearly 4 per cent over the same period.
“We often see the pressure before it shows up in national data,” said Ali Harris-Saunders, Community Relations Manager and former Credit Counsellor at CCS. “People calling us in September are not necessarily in crisis. They’re looking at a statement and realizing the balance they’re carrying is not going to disappear on its own.”
Falling Behind on Payments
Equifax Canada’s figures also point to rising delinquency. The national 90-plus-day credit card delinquency rate eased slightly from the previous quarter but remained 6.8 per cent higher than a year earlier. The credit bureau found that one in four consumers now expects to make only minimum payments on their cards in the months ahead, compared with just four per cent who currently do so — a signal that more borrowers anticipate difficulty keeping up with balances even as they are being incurred.
That combination — rising balances, slower wage growth and a growing share of consumers bracing to pay only the minimum — is what worries organizations like CCS heading into the fall spending season. Peta Wales, President & CEO of the Credit Counselling Society, said the common assumption that a new calendar year offers a natural reset is misleading. “January isn’t a reset button,” Wales said. “If balances are already being carried in September, prolonging repayment isn’t going to make them disappear.”
Holiday Spending Adds Pressure
CCS points to seasonal spending as one driver layering fresh debt onto balances already carried from earlier in the year. Back-to-school costs this year were estimated at $600 to $750 per child when electronics are included, contributing to what the Retail Council of Canada estimated as a $4.5-billion back-to-school season. CCS notes that households are also carrying costs from summer travel, weddings, renovations and unexpected repairs on top of general cost-of-living increases, all before the holiday shopping period begins.
With roughly five bi-weekly paydays between mid-September and Black Friday on November 27, CCS is urging households to take stock of existing balances before holiday promotions begin driving spending decisions. The organization’s Director of Counselling, Mason Cox, said timing matters. “Five paydays gives households a great opportunity to plan for the holiday season, but balancing your normal bill payments with additional holiday costs can be tricky,” Cox said. “Waiting until the holidays are over gives you less options.”
CCS also flagged that counter-tariffs which took effect September 8 could push up some retail prices as they work through inventory, adding another variable for households weighing whether to make purchases now or defer them — and cautioning that financing purchases on credit to avoid a price increase can erase any savings once interest charges are factored in.
Taken together, the figures describe a household debt picture that is improving in aggregate terms — lower debt-to-income ratios and a higher saving rate — while a more granular measure, credit card balances and delinquencies, points to mounting pressure on a subset of borrowers. CCS said it offers free, confidential appointments with accredited credit counsellors for Canadians looking to address balances before the holiday spending season intensifies.
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