According to the Credit Counselling Society, the cost of living continues to climb in Canada but wages simply aren’t keeping pace.
This widening gap is forcing an increasing number of Canadians to rely on credit cards not just for emergencies, but for everyday necessities like groceries and utility bills.
“Canadians are increasingly using their credit to cover basic living expenses,” says Amanda Martin, Credit Counselling Society’s partnerships and education interim director.
“No longer for just emergencies, but it’s more, ‘I need groceries, I have a hydro bill.’”
This growing reliance on credit is a strong indicator of a deeper affordability crisis, with credit counsellors pointing to high debt levels as a major concern.
According to the Credit Counselling Society, in 2023, the average unsecured debt for an individual was $22,000.
That number jumped by 30 per cent in just two years, with the average unsecured debt now exceeding $28,000.
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Manitobans, too, face a similar problem.
Manitoba Harvest, a food bank, is now reporting a significant shift in who is seeking their services.
“Working people coming to Harvest, that’s been the biggest change in terms of who’s coming to a food bank,” says Vince Barletta, CEO of Manitoba Harvest.
“Traditionally, we saw a lot of individuals who are on income assistance, benefits or the unemployed using food banks.”
And Barletta is not talking about a small bracket of people.
“This past year, almost 45 per cent of people who visited a food bank in Manitoba… have a job,” he says
This increased demand weighs heavily on food banks.
“This year, Harvest will spend around $4.5 million buying food to supplement the tens of millions of food value that is donated from across the agricultural and food sector here in Manitoba and beyond,” Barletta says.
And while organizations like Manitoba Harvest will continue to serve and raise money for those who need it, reliance on credit debt and food banks should raise major concerns.