New survey/UBCO

By Vernon Matters Staff

Money matters

New UBCO study links credit card repayment struggles to education, age and income gaps

Jul 2, 2025 | 2:30 PM

A new study from UBC Okanagan suggests that education, age, household composition and region all play a significant role in whether Canadians pay off their credit card balances or fall behind.

The findings, published in the International Journal of Bank Marketing, are based on two decades of national data from Statistics Canada’s Survey of Financial Security.

The research was led by Dr. Khan Jahirul Islam and Dr. Julien Picault, both professors in the UBC Okanagan Department of Economics, Philosophy and Political Science.

“About one in three Canadian households carries credit card balances,” said Picault. “And among those, more than two-thirds skip or delay payments due to financial difficulties.”

The study, which analyzed five waves of data between 1999 and 2019, sought to understand not only which Canadians use credit cards, but why some are more likely to repay their balances in full each month, while others do not.

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The results reveal a clear divide: households led by younger individuals, women and those with larger families are more likely to carry balances month-to-month. In contrast, households with a university education, savings or investments are more likely to pay off their debts consistently.

The research also touches on broader issues of financial literacy and access to credit. Households with mortgages were more likely to make payments below the minimum requirement, while those with lines of credit or liquid assets were less likely to fall behind.

As credit card use continues to climb in Canada, the researchers believe the study’s insights could inform future policy, financial education and targeted outreach.

The full study is available here.