Canada Sees Highest Debt Arrears Since 2015, Credit Card Defaults Surge

Canadian households are struggling to pay their debts, with arrears reaching a six-year high. The Bank of Canada's latest data shows that 2.23% of indebted households were at least 60 days behind on a payment in at least one credit category in the second quarter of 2026.

This is the highest share since 2015, exceeding the previous peak of 2.18% in mid-2019 and surpassing the 1.41% recorded in 2021, when layoffs and furloughs were widespread due to the pandemic.

According to the Bank's data, credit card arrears are a major concern, with 0.80% of accounts at least 90 days past due in Q2 2026, nearly double the 0.44% seen in early 2021.