Canada’s rising debt crisis and record delinquency rates
Fact checked by Cory Santos
Updated Jul 7, 2025
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Fact checked by Cory Santos
Updated Jul 7, 2025
11M
Readers
150+
Reviews
1,000+
Metrics
Partners on this page may provide us earnings.
Over the past year, average debt levels have grown modestly, reflecting increased reliance on credit to meet basic living costs. Delinquency rates—an indicator of financial distress—have surged dramatically, signaling a growing inability among many to manage their financial obligations. This study analyzes key trends shaping the financial landscape of Canada, offering a comprehensive analysis of how debt and delinquency vary across provinces, cities, and generations. It also explores Canadians’ shifting behaviors through Google search trends, highlighting the rising demand for financial solutions as economic uncertainties persist.
Canadian households are grappling with rising debt and escalating delinquency rates, painting a concerning picture of financial instability. Between Q3 2023 and Q3 2024, while average debt levels increased modestly, delinquency rates surged at a much higher pace. These trends underscore the mounting economic pressures affecting Canadians nationwide.
The average non-mortgage debt per Canadian consumer grew by 3.79%, reaching $21,810 in Q3 2024. This steady rise reflects Canadians’ increasing reliance on credit to navigate rising living costs, driven by inflation and stagnant wage growth.
This modest increase in borrowing is outpaced by rising delinquency rates, suggesting that more Canadians are struggling to meet their financial obligations even as they rely more heavily on credit.
Delinquency rates surged by 19.14% YoY, climbing from 1.20% in Q3 2023 to 1.43% in Q3 2024. This sharp rise reflects the growing number of Canadians defaulting on debt payments, a trend exacerbated by high interest rates and persistent economic pressures.
The disconnect between slower debt growth and sharply increasing delinquencies underscores a critical issue: many Canadians are reaching the limits of their financial resilience.
Economic conditions and shifting consumer behaviors provide key context for these findings:
As financial pressures mount, Canadians are turning to search engines to seek solutions for their growing economic struggles. Google Trends data from Q3 2023 to Q3 2024 highlights shifts in search behavior, reflecting the diverse ways Canadians are attempting to navigate their financial challenges. From severe financial crises to proactive debt management strategies, the data reveals how digital behavior mirrors real-world anxieties.
Searches for terms associated with severe financial distress showed the most striking increases, indicating that more Canadians are exploring last-resort measures.
Key observations include:
Searches related to high-stress financial terms reveal that Canadians are actively seeking ways to reduce or restructure their debt. These terms show the urgency with which individuals are attempting to regain financial stability:
On a more optimistic note, Canadians are increasingly seeking proactive strategies to manage debt and improve financial literacy. The data reflects a growing interest in tools that promote long-term financial health:
This section provides a digital snapshot of Canadians’ financial concerns, highlighting the growing reliance on online tools and resources to address both immediate and long-term economic challenges. Let me know if further refinements are needed!
Across Canada, debt and delinquency trends reveal significant regional disparities, shaped by economic conditions unique to each province. While some regions have managed to stabilize delinquency rates despite rising debt, others face sharper increases, underscoring the diverse financial realities Canadians are experiencing.
Ontario’s average debt increased by 4.38%, reaching $22,423 by Q3 2024, while delinquency rates surged by 23.78%, rising to 1.50%. The sharp increase in delinquencies reflects growing financial strain in urban centers like Toronto, where housing affordability issues and high costs of living dominate. Ontario’s challenges underscore the need for targeted financial interventions to support residents.
While Quebec’s debt rose by a modest 2.68%, reaching $19,027, the province experienced the largest YoY increase in delinquency rates, surging by 24.16% to 1.04%. These figures highlight growing repayment challenges for Quebecers, particularly among lower-income households. Rising living costs and limited financial flexibility are key contributors to the province's worsening financial situation.
Nova Scotia’s average debt grew by 3.85%, reaching $21,323, while delinquency rates rose modestly by 6.65%. Compared to other provinces, Nova Scotia demonstrates relative stability, with residents managing rising debts without significant increases in delinquency. This suggests that local economic conditions or financial support systems are helping mitigate financial stress.
New Brunswick’s debt rose by 3.24%, reaching $21,491, while delinquency rates remained steady at 1.53%, increasing by just 0.42%. The province’s ability to stabilize delinquency rates despite rising debt reflects careful financial management among residents and possibly stronger access to financial education or support resources.
In Prince Edward Island, debt levels increased by 5.47%, reaching $23,464, while delinquency rates rose by 5.94%, remaining below the national average. This trend suggests that while borrowing is rising, residents are maintaining reasonable repayment behavior. PEI’s story highlights a cautious optimism amid growing financial pressures.
Newfoundland experienced the highest debt growth among provinces, with a 7.78% increase to $24,771. Delinquency rates decreased slightly by 0.46%, indicating that residents are managing higher debt loads effectively. This unique trend may reflect local economic factors, such as stable incomes from specific industries or government initiatives supporting repayment.
Alberta’s average debt rose modestly by 1.44%, reaching $24,555, the highest in Canada. Delinquency rates surged by 17.39%, reflecting growing financial strain. Economic challenges, such as volatility in the energy sector, likely play a significant role in the province’s financial struggles, impacting household income stability.
Manitoba’s average debt grew by 4.45%, reaching $18,086, while delinquency rates climbed by 11.69%. This combination of debt and delinquency growth suggests rising financial pressures for Manitobans, particularly in balancing debt repayment with everyday expenses.
Saskatchewan saw a 5.92% increase in average debt, reaching $23,405, while delinquency rates rose by 12.44%. The province faces growing financial pressures, with its delinquency rate increase pointing to challenges in managing rising debt levels. This trend underscores the need for targeted financial education or debt management programs.
British Columbia’s average debt grew by 4.26%, reaching $22,438, while delinquency rates increased by 15.33%. With high housing costs in cities like Vancouver, many residents are facing mounting financial pressures. Rising delinquency rates point to the growing difficulty of managing debt in an environment of persistent affordability challenges.
Examining debt and delinquency rates at the city level reveals significant financial disparities across urban centers in Canada. From the resource-dependent economy of Fort McMurray to the high cost-of-living pressures in Toronto and Vancouver, this city-level analysis uncovers how local economic conditions shape household financial health.
Calgary’s average debt grew by a modest 0.77% to $23,999, but delinquency rates surged by 17.23%, reaching 1.59%. These trends suggest that while borrowing has stabilized, financial strain among middle-income households is increasing. Calgary’s economy, tied closely to Alberta’s resource sector, may be facing ripple effects from broader economic volatility.
In Edmonton, debt levels rose by 0.71%, reaching $23,744, while delinquency rates jumped significantly by 18.88%, hitting 2.04%. This sharp rise indicates a growing number of residents are struggling with repayment. Edmonton’s trend mirrors Alberta’s overall financial pressures, where income volatility impacts financial stability.
Halifax’s debt rose by 2.37%, reaching $21,265, with a modest delinquency rate increase of 11.60%. These figures suggest that Halifax residents are navigating financial challenges more effectively than in other urban centers. The city’s economic diversification and moderate cost of living may be contributing to this relative stability.
Montreal saw average debt rise by 2.98% to $16,894, while delinquency rates soared by 27.06%, the largest increase among major Canadian cities. These numbers reflect significant financial strain in the city, where many households face rising costs but limited wage growth. Montreal’s sharp delinquency rise may indicate systemic challenges that need urgent attention.
Ottawa’s debt increased by 2.76%, reaching $19,570, while delinquency rates climbed by 19.29%. As Canada’s capital city, Ottawa’s financial trends likely reflect broader national pressures, including rising living costs and economic uncertainty. The notable delinquency rate growth suggests that even households with traditionally stable incomes are beginning to feel the strain.
In Toronto, debt rose by 4.66% to $20,872, while delinquency rates surged by 24.16%, reaching 1.90%. As Canada’s largest city, Toronto’s challenges are closely tied to its unaffordable housing market and high living costs. The significant increase in delinquency rates underscores the financial toll these pressures are placing on residents.
Vancouver’s debt increased by 4.53%, reaching $23,002, while delinquency rates grew by 19.00%. These trends highlight the mounting financial pressure in one of Canada’s most expensive cities. Rising costs of living and housing affordability challenges are likely driving this sharp rise in delinquency.
St. John’s experienced a 2.41% debt increase, reaching $23,938, with a nearly flat delinquency rate growth of just 0.73%. This stability contrasts with national trends, suggesting that St. John’s residents are managing debt more effectively. The city’s relatively low cost of living and resilient local economy contribute to this positive trend.
Fort McMurray maintains the highest average debt in Canada at $37,915, with a modest 1.21% increase YoY. Despite its significant debt burden, delinquency rates rose by only 6.60%, reaching 2.25%. This unique trend reflects the city’s resource-heavy economy, where high wages often come with high levels of borrowing. Fort McMurray’s relatively controlled delinquency increase suggests resilience among its residents.
Debt and delinquency trends across Canadian age groups reveal how financial challenges vary at different stages of life. From young adults navigating financial independence to retirees managing fixed incomes, this generational analysis highlights unique pressures faced by each cohort. These trends underscore the importance of targeted financial support and education tailored to life-stage needs.
Young adults aged 18–25 experienced a 4.72% increase in average debt, reaching $8,267, alongside a 17.02% rise in delinquency rates, reaching 1.81%. These figures reflect the financial growing pains of early adulthood, as this group takes on new responsibilities such as student loans, first credit cards, and entry-level wages. The significant delinquency increase highlights challenges in managing debt due to limited financial experience and precarious income sources.
Debt for the 26–35 age group grew by 1.90%, reaching $17,485, with delinquency rates increasing by 19.33% to 2.04%. This stage of life is marked by key milestones such as homeownership, family planning, and career advancement. The rising delinquency rates indicate that these financial commitments are straining household budgets, as many in this cohort struggle to balance long-term investments with short-term cash flow needs.
The 36–45 age group saw a 3.17% increase in debt, reaching $26,984, while delinquency rates jumped by 24.40%, the largest YoY increase among all groups. Often managing mortgages, childcare, and other significant expenses, this group faces peak financial obligations. The sharp rise in delinquencies signals growing challenges in maintaining financial stability, particularly amid rising costs and stagnant income growth.
Average debt for the 46–55 age group increased by 4.75%, reaching $34,317, the highest among all cohorts. Delinquency rates also rose by 21.43%, reaching 1.25%. This group represents individuals in their prime earning years, often managing ongoing mortgage payments, education expenses for children, and saving for retirement. The increase in delinquency rates suggests that even with higher incomes, many are struggling to keep pace with rising debt.
Among retirees aged 65 and older, average debt rose by 3.61% to $14,575, while delinquency rates increased modestly by 8.12% to 1.08%. This group has the lowest debt levels, reflecting more cautious borrowing behaviors, but the data suggests that rising living and healthcare costs are stretching fixed incomes. The moderate delinquency increase highlights the difficulties some retirees face in maintaining financial stability.
This age-based analysis underscores the importance of generationally tailored financial solutions. Younger Canadians may benefit from targeted financial literacy programs, while pre-retirees and retirees require accessible tools for managing debt and planning for fixed incomes. Policymakers and financial institutions must address these diverse needs to build a more financially resilient population.
Canada’s rising debt and delinquency rates reveal a nation grappling with significant financial challenges. From modest debt growth to surging delinquencies, this study underscores the fragility of household financial health in the face of persistent inflation, stagnant wages, and high borrowing costs.
To mitigate these challenges, coordinated action is critical:
A comprehensive response to these issues will not only aid individual households but also contribute to broader economic resilience.
This study draws on multiple data sources and methodologies to provide a thorough analysis of debt and delinquency trends across Canada. Key aspects of the methodology include:
Nicholas Rizzo is an expert in data-driven research and digital PR, with eight years of experience specializing in crafting original data studies and research for brands by turning complex datasets into compelling, data-centric narratives that are thee authoritative source to speak to the questions, topics, trends, and news that are core to their industry and target audiences.
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