As of early 2025, total Canadian household debt sits at roughly $2.9 trillion CAD, with the average consumer carrying about $21,000 in non-mortgage debt. That is a high figure relative to income, and it reflects years of rising costs and heavy reliance on credit.
If you searched this question, you are likely comparing debt loads across borders, or you may have cross-border financial ties. Perhaps you are a U.S. resident with Canadian debt, a dual citizen, or someone considering a move. The core issue is usually the same: credit card balances, auto loans, or personal lines of credit that have become difficult to manage. The risk level here is moderate to high. Canadian lenders report to Equifax Canada and TransUnion Canada, and missed payments can harm your credit score just as they do in the United States. If you are falling behind, the hardship is real, and it can affect your ability to rent, borrow, or even work in certain roles.
A professional review makes sense if your total unsecured debt exceeds half your annual income, or if you are making only minimum payments. In Canada, options include consumer proposals, credit counseling, and debt management plans. Bankruptcy is a last resort. The tradeoff is that a consumer proposal stops interest and reduces what you owe, but it stays on your credit report for three years after completion. Credit counseling can help with budgeting but does not reduce principal.
Before you speak with anyone, gather your statements for each account, your monthly income, and your essential expenses. Note which accounts are current and which are past due. This information will let you see your full picture.
Debt relief availability depends on your state or province, the type of debt, your hardship level, account status, and partner criteria. No single solution fits everyone.
If you want a clear, private first look at your options, use the DebtSense AI assessment on the homepage. It is a quick, no-obligation review that can help you understand what might work for your situation before you commit to any path.
Debt question guide