How much debt is normal in Canada? We break it down by age + MORE Jun 22nd

25+ new confirmed Cobalt Multipliers added from Canada and Ireland, Telus quietly drops credit card fee and Porter Airlines set to add Kelowna and Victoria. Check out today’s points & miles updates here:
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As the country re-opens after COVID-related restrictions, Canadians are faced with a worrying financial picture. Many have moved, others are looking to travel, and the cost of living is ballooning with unusual rates of inflation. Meanwhile, the Bank of Canada (BoC) rate hikes designed to curb these forces are adding pressure to those with variable-rate loans and mortgages. Unsurprisingly, many Canadians are using their credit cards to charge their expenses.

How much debt does the average Canadian carry? 

The average credit card balance for Canadians in the first quarter of 2023 was $3,909, according to Transunion. And that is up from average monthly credit card spend of almost $2,447 in the third quarter of 2022, which is above the 17.3% from same time in 2021 and up 21.8% in 2019, according to Equifax. And from another report from the Canadian credit bureau, Canadian consumer debt has risen to $2.32 trillion, with an average debt load of approximately $21,183—excluding mortgages…

Last week we provided details about MBNA converting their grandfathered Alaska Airlines Mastercards to their proprietary Rewards cards products. Alaska cardholders began receiving letters about the switch or unfortunately for some, closure of their accounts instead of conversion. The notice alerted cardholders that their Alaska Airlines World Elite Mastercard will be converted to a MBNA […]
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Debt seems to be a normal thing for Canadians these days. After a brief decline during the pandemic, the Canadian household debt-to-income ratio soared to 184.5% in the first quarter of 2023. That means Canadians owe nearly $1.85 for every dollar of disposable income.

The ballooning debt has been mainly driven by rising mortgage balances as demand pushed home prices to record levels across the country.

Does this mean the average Canadian is up to their eyeballs in debt? Not necessarily.

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What is the average debt for Canadians?

Let’s start by looking at the average consumer balance held across different credit products. This information comes from TransUnion’s Q1 2023 Credit Industry Insights report.

Debt typeAverage owedCredit cards$3,909Installment loans$20,845Auto loans$26,494Lines of credit$34,328Mortgages$349,178

Note, the numbers here represent the average consumer that carries a balance in these categories…