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Who has the most in debt in Canada?

Over 60% of household debt was held by those under 45 years of age, and nearly one-half was held by couples with children.

Individuals who had a household income of at least $100,000 represented 31% of the population but 37% of those with debt.

In comparison, those who had a household income of at least $50,000 but less than $100,000 represented 38% of debtors but held 31% of household debt

Source: Stats Canada

It looks to me like most of the debt is held by people who have young children, and are more than likely, homeowners paying a mortgage. This makes sense. When you’re young, you have debt from school, and not much in your net worth.

As you age, you get married, maybe start a family, and buy a home.

Once you reach retirement, one hopes that your home is paid in full and you retire with a fully paid mortgage, which is why debt falls after 45.

What I find interesting is the household income of more than $100K, represents 31% of the population but 37% of debtors. This means there is a slight overspending-to-keep-up-a-façade happening.

People who make a high income also find it easier to get into debt because banks are more eager to lend to them based on their salary.

Banks are not so eager to lend to people like me. I don’t make on average, a lot of money for them. I leave it all in the company and I also tend to only take out what I need to live in dividends, so my declared income / salary each year, looks very low to banks.

The only time I got offered a huge loan was on a possible mortgage but only because it was a banker who has known me for a while; she said I qualified to her, for over half a million as a mortgage. Just me. One individual. I decided not to take on a mortgage and paid my home in cash, but basically, if you have lots of assets, banks are eager to lend more money to you than someone who doesn’t look like they have much.

This also (for me) ties true in that if your household income is $50K – $100K, you are 38% of the debt population but holding 31% of the debt. Banks are not likely to give you AS MUCH money as A home that makes at least $100K, so you own less as overall household debt.

The more you make, the more you can borrow, and the more you owe.

Also, this means that if I do the math of 38% of debt + 31% of debt = 69% of debt is held by people who make $50K – over $100K as household incomes.




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