New research from CreditCards.com shows that the average cost of a credit account in Saskatchewan, at $3,000, is just shy of $1,500.
That’s right: Saskatchewan’s credit card costs $1.9 million.
And even that amount is still a bit pricey, thanks to the high interest rates associated with Canadian cards, and the fact that most people don’t use them.
What this research reveals, according to CreditCamps.com, is that Canadians are paying more on credit cards because they’re not paying their share.
That means we’re paying for more than the value of the cards themselves.
It’s also the case that the costs associated with buying credit cards are lower for people who don’t have high credit scores or those with lower incomes, as well as those who earn less than $100,000 annually.
CreditCasts.com’s survey also found that the majority of Canadians use credit cards to pay for basic necessities like groceries and other necessities like transportation.
And while the average cardholder spends an average of $4,000 a year, it takes only about $4 per month to pay the bill.
What’s more, Canadians are also buying credit at lower rates than Americans.
While the average credit card in Canada costs $0.74 per transaction, Americans pay an average $7.99 per transaction.
Creditcards.com found that Americans are spending the most on credit on average.
What is this all about?
The CreditCasters.com survey revealed that Canadians spend the most per month on credit card purchases, with the average of around $4.00.
CreditCardTypes.com looked at this in a more granular way.
The company found that Canadians were spending $2.78 per transaction for basic goods, $1 per transaction on basic necessities, and $0 on travel and entertainment.
What makes it so pricey?
According to CreditCardCamps, Canadians also spend more than Americans on basic things like groceries, but the difference isn’t large.
Canadians spend $1 on basic groceries and $2 on basic essentials.
Americans spend about $1 each on groceries, basic necessities and entertainment, and spend $2 each on basic transportation and entertainment and travel.
CreditBanks.com also found Canadian shoppers spend the least on credit, with Canadians spending around $1 in basic groceries, $2 per transaction and $3.00 on basic supplies like transportation and other basics like gas.
How do you think Americans are buying credit?
What can we learn from Saskatchewan’s results?
CreditCaps.com is not the first company to make the claim that Canadians don’t spend enough on credit.
According to Bankrate.com , American consumers spend around $2,700 on credit per person per year, with that amount growing annually as we age.
Americans are also spending more on consumer spending, especially on personal debt.
According the Bankrate study, Canadians spend less on credit than Americans, but this is mainly because of high interest.
As a result, Canadian consumers are paying a much lower interest rate, with American consumers paying more.
That could explain why Americans are paying less on their credit cards than Canadians.
CreditTypes.net found that American consumers are spending around the same amount on credit as Canadians, but they pay an even higher rate on credit transactions.
Americans pay $1 for a $5 payment, while Canadians pay $2 for a one-time payment of $50.
In terms of the average amount of debt that Canadians and Americans carry, Americans are less likely to borrow and hold a lot of credit cards, while Canadian households are more likely to hold a low amount of credit.
What else could this tell us about our credit card usage?
The study found that Canadian consumers were more likely than Americans to use credit to pay off debt.
This may not be a surprise, as Canadians spend a higher percentage of their income on credit and are more reliant on credit for basic needs like groceries.
Credit Cards.com further found that in comparison to Americans, Canadians were also more likely, and more likely in particular, to use debit cards to buy necessities such as gasoline and household appliances.
Credit Bases.com estimated that Canadian households spend around 10 percent of their total income on household expenses, but spend only 3 percent of that on credit purchases.
This might seem like a large difference, but it could be a big reason why Americans have a much higher interest rate than Canadians on their debt.
What other findings from the CreditCaster survey are you interested in?
You can find more credit card and consumer spending information from Credit Casters.