Canadian Households Face Mounting Debt and Rising Delinquencies Amid Economic Pressures

KCJ Media Group Ltd.

As of late 2024, Canadian households are grappling with escalating financial pressures, marked by a surge in consumer debt and rising delinquency rates. Total consumer debt soared to $2.56 trillion, a 4.6% increase from the previous year, driven largely by non-bank auto loans and credit card balances . The average non-mortgage debt per consumer reached $21,931, surpassing pre-pandemic levels. Everything Mortgages

Mortgage holders, particularly in Ontario and British Columbia, are experiencing significant strain. In Ontario, over 11,000 mortgages recorded missed payments in Q4 2024, nearly triple the number from 2022, with the 90+ day mortgage delinquency rate surging by 90.2% year-over-year to 0.22% . This trend is attributed to the renewal of mortgages at higher interest rates, leading to increased monthly payments. Approximately one million mortgages are set for renewal in 2025, posing potential payment shocks for many homeowners 

Credit card debt also reached unprecedented levels, with balances hitting $124 billion—a 9.2% year-over-year increase. The average credit card debt per person climbed to $4,562, reflecting a 6.97% rise from 2024 . Younger Canadians, especially millennials, are disproportionately affected, with many relying on credit cards for everyday expenses.Canadian Debt Relief

Despite recent interest rate cuts, over a quarter of Canadians anticipate being unable to pay at least one of their current bills or loans in full, and more than one in five plan to take on additional debt to manage basic living expenses . The Bank of Canada notes that while most mortgage holders are positioned to manage higher payments due to prior stress testing and income growth, financial stress remains concentrated among households without mortgages .