The reliance of Canadians on credit card debt as a predictor of financial stress

Jia Qi Xiao

No 2024-18, Staff Analytical Notes from Bank of Canada

Abstract: I analyze the relationship between carrying a credit card balance and future financial stress. I find that carrying a balance significantly increases the likelihood that credit card holders miss future debt payments. This likelihood tends to rise as credit card balances grow and are held for long periods.

Keywords: Credit and credit aggregates; Financial institutions; Interest rates; Recent economic and financial developments (search for similar items in EconPapers)
JEL-codes: D1 E4 E5 G2 G21 (search for similar items in EconPapers)
Date: 2024-07
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocsan:24-18

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