More than half of Canadians are getting seriously indebted on credit cards

According to the data provided by the Equifax Canada over half a million Canadians are more than three months behind on their credit payments which is a 19% increase in the average delinquency rate in the year ending May 31. The agency says that the double-digit jump is "alarming” but still the overall average delinquency rate for Canada is 1.52%.

Equifax reports that most of the debts are coming from missed payments on credit cards. Debt counselors at the Ontario Association of Credit Counseling Services have seen a 25 to 30% jump in clients over the past three months, says spokeswoman Henrietta Ross. She noted that last year alone her clients accumulated over $700 million of debt.

"When you look at the economy and the job situation, and just look generally at most debt people have, it wouldn't be surprising for that number to be much higher," she said.

The Certified General Accountants Association of Canada reported in May that Canadians are increasingly relying on credit cards and credit lines to finance day-to-day expenses. The association said that in total Canada accumulated a household debt of $1.3 trillion.