At the time of writing there are more than 50 million credit cards being used in Canada. How many of these cards are attached to loyalty programs, one can only speculate.
What is known is that every month in Canada approximately 60% of all credit card debt accumulated on those Canadian cards will not get paid and consumers will end up paying interest charges ranging from 20% and upwards on an annual basis.
Yet, in Canada at least, the endless hunger for program points and credit card reward programs offering everything from hotels with free flights to university tuition continues. It’s a mindless pursuit that ignores the very obvious — that is if you are paying high interest on these credit card debts then there is no credit card points program in the world that should make this sort of spending behavior make sense. With all these credit card debts as well as the payday loans industry that seems to be booming, it is no wonder why Canadians are having to look to credit counselling and bankruptcy firms for help.