Man vs Debt
Debt is a common aspect of modern life, and Canadians are no strangers to debt. Ever wonder how your debt stacks up against the rest of Canada?
We’ve all been there, staring at a credit card statement, overdraft alert, or loan balance, and wondering if we’re drowning.
What’s then the average debt of Canadians? How much debt is normal, and how do you compare to others?
While pinpointing an exact “average” can be tricky due to varying circumstances, we can look at some general benchmarks.
Canadian consumer debt has risen to $2.4 trillion. According to Equifax, at the end of 2020, the average Canadian owed $72,95, excluding mortgage debt. The full breakdown of other credit products include:
- Credit Cards: The average credit card debt is approximately $3,909.
- Installment Loans: Canadians owe an average of $20,845 in installment loans.
- Auto Loans: The average auto loan debt stands at $26,494.
- Lines of Credit: Canadians carry an average balance of $34,328 on lines of credit.
- Mortgages: The average mortgage debt is around $350,00
Canadian debt across age groups
The average debt number doesn’t tell the whole story. Debt can vary greatly depending on your age, income, and lifestyle. Here’s a breakdown of how debt can differ across age groups:
Young Adults (18-34):
This age group is often saddled with student loan debt and might also have credit card debt for living expenses or car payments. The average debt in this category is around $16,832
Middle-Aged Canadians (35-54):
This group might have paid down some student loans but may also have mortgages, car loans, and potentially debt related to raising a family. The average debt for this age range is $31,442
Nearing Retirement (55-64):
People in this age group might still be paying off a mortgage or car loan, but they may have made significant progress on student loans. The average debt here dips slightly to $26,165
Retirement and Beyond (65+):
Debt tends to decrease in retirement as mortgages are often paid off. The average debt for Canadians over 65 drops to $14,386
Remember:
Debt isn’t inherently bad, especially for things like investments or education. However, it’s crucial to manage it effectively to avoid financial strain.
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