Will Credit Card Deals Lead Canada to the Financial Crisis?

The United States is not the only country that has a massive credit card debt. Another country in big financial crisis due to the lack of financial education is Canada. More and more Canadians are getting new credit card deals, but unfortunately, are not aware how to use them wisely.

Canadians have much less credit card deals, than Americans, but still, credit card owners are worried about their growing credit card debt. The latest financial survey showed horrible results!

More and more credit card deals appear on Canadian market. All the deals issued by the major credit card companies like Visa, Discover, MasterCard or American Express are available for Canadian consumers today.

The spending power of Canadian consumers is growing every day and many of them prefer credit cards to cash now. They can use their cards freely as their cash back, hotel rewards, business credit cards and all other types of cards are widely accepted by Canadian retailers.

The latest study, released in October, 2007 by Canadian credit companies and banks, showed that Canadians have much less credit cards than Americans do (an average American carries from 7 to 10 credit cards in his or her wallet), they also carry the lower debt on their cards and seem to be more responsible in paying balance in full every month, still the credit card debt in Canada is growing fast! The number of credit cards used in Canada increased by 7% in the last three years!

According to the latest financial studies, thousands of Canadian credit card users struggle with huge credit card debt. 90% of surveyed admitted that they feel they have a bigger debt today than they had 5 years ago.

And there is a reason for this debt: 4,000 of Canadians were surveyed last month and the result was simply frightening! 28% of respondents had no clue what the interest rate on their credit cards was! Americans, for example, are much more concerned about such an important credit card feature as interest rate. Most of Americans admit that they prefer low interest credit cards.

53% of Canadian responded that they had no budget for their monthly income. And because of that 25% of respondents said that their consumer debt was somewhere between $10,000 and $40,000. These figures are really alarming! They appear to be dangerous for the financial status of the Canadians, that's why there appear many new nonprofit credit counseling organizations that help Canadians to plan their budget. It is really necessary and not only for the Canadians to manage their finances today in order to build strong financial future.

There are many well-known ways to stay out of credit card debt:

• Don't get too many credit cards.
• Pay your balance in full every month.
• Study the terms and conditions of your credit card offer.
• Don't ever miss the payments!

Using these simple rules you will be able to benefit from the credit cards you use no matter if you are a Canadian or an American or anyone else!