The Debt Burden
According to various sources, the overall debt burden for many Canadians remains on the rise – compounded by ongoing costs of living. Prices over time, just keep going up.
In this post, I am curious to know from readers:
- What is your debt burden? or
- If you have no debt at all, when and how did you get rid of your debt burden?
The Debt Burden
Here are some recent selected articles on this subject:
From CMHC, fall 2024: @CMHC_ca
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Mortgage debt: Canada’s mortgage debt reached $2.2 trillion as of July 2024, growing 3.5% year-over-year. Despite lower interest rates, high borrowing costs and elevated home prices continue to limit buyer activity.
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Borrower behavior: Canadians are increasingly opting for shorter-term fixed-rate mortgages, with 3- to 4-year terms dominating the market. Five-year fixed mortgages account for only 12% of new loans.
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Delinquency rates: Mortgage delinquency rates have risen slightly to 0.2%, though they remain below pre-pandemic levels. Auto loan delinquencies, at 2.42%, pose a risk for further increases.
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Renewal challenges: Over 2.2 million Canadian homeowners face higher payments when their mortgages, signed during historically low rates, come up for renewal in 2025-2026.
From LoansCanada, summer 2024: @LoansCanada
Maybe not surprisingly, Canadians aged 35-44 who are busy establishing their careers; acquiring real estate to call home; potentially raising a family; carry the highest average debt burden in Canada: reaching a whopping $541,851.
Source/Attribution: https://loanscanada.ca/debt/average-debt-by-age-canada/
More recently, from February 2025, I read Canadians carry thousands in credit card debt: @MoneySense
“The average credit card balance for Canadians in the third quarter of 2024 was $4,562, according to TransUnion. This is up 6.97% from the previous year, putting credit card debt as the fastest-growing type of consumer debt….”
And…from CBC, February 2025:
“The number of Canadians in debt is on the rise across the country and, according to a new report, there’s a growing gap between those who have benefited from declining interest rates, and those who have fallen behind from the higher costs.”
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“Meanwhile, missed payments on credit cards, credit lines and auto loans are on the rise among non-homeowners who are young, lower-income, or renting or living with family.”
Ouch.
On a personal note, my debt burden existed until late-December 2023, after our final mortgage payment was confirmed in early January 2024 but that was a multi-year journey for sure.
We paid off over $350,000 in mortgage and borrowing costs.
Anyone struggling with debt could consider one or more of the following approaches:
- Take time to define your debt. Analyze who you owe, for what and by when, in detail.
- Take time to create and practice a budget. Analyze your income and expenses to create a realistic budget – where money needs to go; identify all needs vs. all wants.
- Explore financial management opportunities. Explore ways to a. increase your income and/or, b. cut back expenses and/or c. use debt consolidation approaches including access to professional help for guidance.
Curious, readers: what is your debt load? If so, how much do you have if you don’t mind me asking? If you are out of debt, when and how did you accomplish that? Have you gone back into debt since?
Could I help in any way via this site?
Mark
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Mark
My name is Mark Seed – the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I’m looking to start semi-retirement soon, sooner than most. Find out what I did and how I realized Financial Independence to tailor your own path. Join the newsletter read by thousands. Always free.
