Managing debt to build wealth + MORE Aug 21st

If you’ve ever looked at your credit card statement and thought, “How am I ever going to pay this off?” you’re not alone. Many Canadians are dealing with high-interest debt and, on top of that, worrying about how to boost their credit score. It can feel especially tough if your credit isn’t great right now. 

The reality is that more and more Canadians are falling behind on credit payments. Thanks to the spike in inflation that occurred after the pandemic lockdowns were lifted, the cost of living across the country has ballooned. And credit card interest rates? They’re sitting at around 20% or more, which means even a small balance can turn into a monster rather quickly. In a recent Ratehub.ca survey, 50% of respondents said they had taken out a loan (student, auto or personal), and 41% carried debt over $1,000. (Ratehub.ca and MoneySense.ca are both owned by Ratehub Inc.)

Even if you keep up with your minimum monthly payments, credit card interest charges will eat into your progress; it’s like financial quicksand…

Rui Alves and Fedele Colucci will not be charged by Ontario’s real estate regulator in the wake of a multi-million dollar shortfall in the company’s trust accounts, RECO told the Star by email.

Air Canada reschedules 2 unaccompanied minors’ flight a full week from when they were to fly home  CTV NewsThe Air Canada strike wasn’t just a win for workers. It was also a wrench in Mark Carney’s plans  Toronto StarBarrie, Ont. couple’s dream vacation turns costly after Air Canada strike  CTV NewsAir Canada flight attendants to vote on deal next week as flights resume  Global NewsAs Air Canada resumes service, analysts see contained long-term financial damage  The Globe and Mail

It’s an eyebrow-raising trend: non-mortgage delinquencies have reached levels not seen since 2009, according to a report by Equifax, one of the three largest consumer credit reporting agencies. Specifically, 1.4 million people in Canada have recently missed a credit payment. 

But it’s not all bad news behind the dire headline—and there is an opportunity to help young people, in particular, understand the difference between good debt and bad debt.  

So, where’s the good news? 

Total consumer debt in Canada was $2.55 trillion at the end of the first quarter (Q1) of 2025, up 4% year-over-year. That’s a huge number—and interestingly, almost twice the federal government’s record-setting debt of just over $1.4 trillion. 

Still, that consumer debt number is down more than $6 billion from the end of 2024. While average non-mortgage debt rose to $21,859 per person in Q1 2025, there may be some valid reasons for it. 

Age is a factor in debt acquisition

Debt, statistically, is a recurring issue for younger people…