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What's the average debt in Canada and how do you compare?
September 29, 2026
By Jillian Stinson
Got debt? Chances are you do and that’s ok. Here’s how your total debt compares to other Canadians and what can help if yours feels like too much.
Key takeaways
- The average Canadian carries about $22,300 in non-mortgage debt (Equifax, 2025).
- Canadians now owe about $1.77 in total debt for every dollar of take-home income, the highest ratio in the G7.
If you have debt, you’re not alone. In fact, Canada has the highest household debt-to-GDP (Gross Domestic Product) ratio among G7 countries.
Yes, our country’s debt level makes the threat of recession and inflation much risker in general. However, as an individual, not all debt is bad. Let’s explore the average debt in Canada, and what to do if your own number is higher than average.
"Debt is a normal part of most Canadians' financial lives, and there's no need to feel ashamed if you're carrying a balance,” according to Angela Fennelow, a Sun Life advisor and Certified Financial Planner. “What matters is understanding where you stand and taking intentional steps to manage it."
What is the average debt level in Canada?
According to Equifax, the average Canadian owed $22,321 in debt in 2025, excluding mortgages. This included:
- credit card debt,
- lines of credit,
- car loans, and
- personal loans.
Credit card debt is the most common type of debt in Canada. The average Canadian owes $4,562 on their credit cards (TransUnion, 2024). That’s a concerning number, since credit cards often have high-interest rates that make a balance hard to pay off.
Learn smart ways to protect yourself from credit card debt.
What’s causing the rise in consumer debt?
Canadians now owe nearly $1.77 in credit market debt for every dollar of disposable income, according to a report published earlier this year. That’s the highest debt burden among G7 nations.
The increasing debt is due to two main factors:
- Inflation has pushed up everyday costs, leaving less left over each month. The Consumer Debt Index shows that almost half of Canadians say they’re only $200 or less away from paying their bills. This results in the increasing reliance on credit cards to cover daily costs. Learn about inflation.
- High interest rates on credit balances might mean overall debt increases for those unable to pay their credit card statements in full.
How debt varies by province
Within Canada, the level of debt also varies across provinces. The highest average debt levels (excluding mortgages) are Newfoundland, Alberta and Prince Edward Island. The lowest are Nova Scotia, Quebec and Manitoba. This could be due to variations in income levels and cost of living in different provinces.
| Province | Average debt* excluding mortgages |
|---|---|
| Ontario | $23,289 |
| Quebec | $19,923 |
| Nova Scotia | $22,236 |
| New Brunswick | $23,509 |
| PEI | $24,827 |
| Newfoundland | $25,436 |
| Alberta | $25,082 |
| Manitoba | $18,887 |
| Saskatchewan | $23,764 |
| British Columbia | $23,558 |
| Canada average | $22,699 |
What is the average debt by age group in Canada?
Here’s a breakdown of debt by age group, excluding mortgages, according to Equifax:
| Age group | Amount of debt (Q2 2026) excluding mortgages |
|---|---|
| 18-25 | $8,746 |
| 26-35 | $17,632 |
| 36-45 | $27,509 |
| 46-55 | $35,379 |
| 56-65 | $30,718 |
| 65+ | $15,567 |
NOTE: The total debt measured includes: lines of credit, credit card debt, student loans, vehicle loans and other debt (doesn’t fit in a category).
What kind of debt is common by age in Canada?
The type of debt you have tends to shift with age and life stage.
- Priya, 24, is paying down a student loan and carries a small credit card balance.
- Marcus, 34, has a mortgage, a car loan, a line of credit and a credit card balance. This is a common combination for Canadians in their 30s.
- Devon, 45, carries a large mortgage balance and a line of credit. But he also has a higher income and the most expensive childcare years are behind him.
- Fatima, 55, is paying down debt faster than she used to. She’s also putting more toward her retirement savings.
- Hélène, 65, is close to being mortgage-free. However, it’s increasingly common for retirees to carry a mortgage.
- Walter, 72, uses a line of credit to help stay in his home longer.
What can you do if your debt is too high?
Is your level of debt higher than the average? Don't panic. A few concrete steps can help.
“I've worked with clients at every debt level, and the ones who succeed are those who face their situation head-on, rather than avoid it," says Fennelow.
1. Create a budget
The first step to managing your debt is to create a budget. This will help you:
- track your income and expenses, and
- identify areas where you can cut back and save money.
Be sure to include all your debt payments in your budget. Put any extra funds towards paying off debt down faster.
Want to know what you’re spending on and saving now?
2. Prioritize repayment
If you’re juggling multiple debts, it's important to select which ones to pay off first. Make the debt with the highest interest rate your top priority, as it will cost you more in the long run. Consider consolidating your debts into one payment with a lower interest rate to make it more manageable.
3. Cut back on expenses
Reducing your expenses can free up extra money to put towards paying off your debts. Consider cutting back on non-essential items like restaurant meals, subscription services and entertainment. You can also try negotiating with your service providers for a better deal or switching to a more affordable option.
4. Avoid taking on more debt
It may be tempting to take out more loans or use credit cards to cover expenses. However, this will only add to your debt burden. Instead, focus on reducing your current debt. Then, start building a solid financial plan to avoid taking on more debt in the future.
5. Get help from a professional
If you find that you're struggling to manage your debt, don't be afraid to seek professional help. An advisor can help you:
- find ways to reduce your debt and save more,
- review your current financial situation,
- build a plan for your short- and long-term goals,
- revise your plan as your needs change,
- avoid emotionally driven decisions.
"If you're feeling overwhelmed by debt, that's a sign to reach out, and not something to worry about,” says Fennelow. “A personalized strategy addressing your specific circumstances, income, and goals can make a real difference. Together, we can look at the full picture and create a manageable path forward that works for your life."
Remember, everyone's financial situation is different. Don't compare yourself too closely to others. Focus on improving your own financial health and seek help when you need it. A Sun Life advisor won’t judge you. They want to help.
Enter your postal code to find an advisor near you.
This article is for general informational purposes only. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.
