Carrying a credit card balance into the holidays? Five paydays decide what it costs

Canadians carried $134.2 billion in credit card debt in the second quarter, up from $130.6 billion three months earlier, according to Equifax Canada. Card delinquencies of 90 days or more were 6.8% higher than a year ago. And one in four consumers told Equifax they expect to make only minimum payments in the coming months. Today, only 4% do.

Black Friday is November 27. If you're paid every two weeks, that leaves about five paydays. What you do with them decides whether this year's holiday spending costs you a few hundred dollars in interest or a few thousand.

What a minimum payment actually buys

Take a $4,000 balance left over from summer and back-to-school, at 20.99%, a typical rate on a standard card. That's about $70 a month in interest before you pay down a cent.

Many cards set the minimum at around 3% of the balance. At that pace:

• It takes about 20 years to clear the $4,000.
• You pay roughly $5,100 in interest, more than the original balance.

Now add $1,000 of holiday spending on top, for a total of $5,000:

• Minimum payments only: about 21 years and $6,400 in interest.
• That $1,000 of gifts ends up costing about $1,300 more in interest on its own.

A minimum payment isn't a repayment plan. It's the amount that keeps the account in good standing while the balance pays for itself many times over.

What a fixed payment does instead

The same $5,000 at 20.99%, paid with a fixed amount every month:

• $200/month: paid off in about 34 months, with $1,630 in interest
• $300/month: about 20 months, $960 in interest
• $500/month: about 12 months, $540 in interest

Moving from the minimum to $300 a month saves more than $5,000 in interest on this example. The biggest lever isn't the rate. It's the payment amount.

Five paydays, in real dollars

An Ontario employee earning $65,000 takes home about $49,375 a year after tax, CPP and EI. That's roughly $1,900 a paycheque on a biweekly schedule. Check your own number with the take-home pay calculator.

Setting aside $300 from each of the next five paydays puts $1,500 toward the balance before Black Friday. That either shrinks the $4,000 to about $2,600 before the holidays, or covers the holiday spending in cash so the balance doesn't grow.

How to use the paydays you have left

• Get the full number. Add up every card and line of credit now. A total is easier to plan around than a vague sense of "some debt."
• Set a holiday ceiling before the sales start. Decide the number in October, not in the checkout line.
• Pay the highest rate first. Put extra money on the 20%+ card before the 8% line of credit, even if the line of credit has the bigger balance.
• Automate a fixed payment. Set it up for payday, so the money is gone before it gets spent.
• Ask about a lower rate. Some issuers will lower your rate or offer a balance transfer if you ask. Read the transfer fee and the end date of the promo rate first.
• Pre-fund January. Property tax, insurance renewals and the first-of-the-year bills don't stop because it's the holidays.

If the balance keeps growing even with a plan, a non-profit credit counselling agency can negotiate with lenders for free or at low cost. The Credit Counselling Society says inquiries rose almost 20% between August 2025 and August 2026.

The takeaway

The national debt picture is mixed. StatCan says household debt fell as a share of income last quarter, while credit card balances and delinquencies rose. Your own picture comes down to one decision: whether this year's balance gets a plan before the holidays add to it, or after. Five paydays is enough time to make that plan, and to see what your cost of living really leaves room for.

Sources: Equifax Canada Q2 2026 consumer credit data and Credit Counselling Society figures as reported by Money.ca, Canadians now carry $134.2 billion in credit card debt (September 26, 2026). Repayment scenarios are Metrestick calculations assuming 20.99% annual interest compounded monthly and no new spending. The minimum payment is modelled as 3% of the balance (with a $10 floor), so check your own card's formula. Take-home pay computed with Metrestick (2026 federal and Ontario tax, CPP, EI).