If you’re wondering “how much credit card debt is normal?”, you’re not alone. Credit card use is widespread in Canada, and with inflation and rising interest rates, many Canadians are leaning more heavily on credit just to cover basic needs. But at what point does credit card debt become a problem?In this article, we’ll break down the average credit card debt in Canada, what’s considered ‘normal’, and how to know if your debt level needs attention.
What’s the average credit card debt in Canada?
Recent data from Equifax Canada’s Q1 2025 Consumer Credit Trends Report shows that the average Canadian credit card balance reached $4,185 in early 2025 – an all-time high. This reflects a national trend of increased credit reliance amid high inflation and economic uncertainty. Here’s a snapshot of average credit card debt by age group:
| Age group | Average credit card debt (2025) |
|---|---|
| 18 – 25 | $1,400 |
| 26 – 35 | $3,900 |
| 36 – 45 | $5,200 |
| 46 – 55 | $6,000 |
| 56+ | $4,700 |
These averages may offer perspective – but they don’t define what’s “healthy” for your unique financial situation.
So, how much credit card debt is normal?
“Normal” is relative. While averages are helpful benchmarks, what really matters is whether your debt is sustainable. Most financial experts recommend keeping your credit utilization ratio below 30% – meaning you’re using less than 30% of your available credit limit. If, for example, your credit card has a $5,000 limit, a balance of $1,500 or less is considered manageable.
If your balance is consistently over 50% of your limit – or maxed out – you may be at risk of damaging your credit score and facing mounting interest charges.
Is it okay to carry a balance?
Carrying a credit card balance occasionally isn’t unusual. But credit card interest rates in Canada average between 19% and 24%, which can make carrying debt extremely expensive. Here’s an example:
If you carry a $3,000 balance at 20% APR and only make minimum payments, it could take you more than 10 years to pay it off – and cost you over $3,000 in interest alone.
Warning signs you might have too much credit card debt
Even if your balance is “normal” compared to the national average, that doesn’t mean it’s financially healthy. Watch for these warning signs:
- Making only minimum payments each month
- Maxing out one or more credit cards
- Using one credit card to pay off another
- Avoiding your credit card statements due to stress
- Receiving calls from creditors or collection agencies
If this sounds familiar, it’s a sign your credit card debt may be more than you can manage alone.
What to do if you’re struggling with credit card debt
At Spergel, we understand how overwhelming credit card debt can be – but there are ways to take back control. Here are a few practical steps:
1. Create a debt repayment strategy
Use the debt avalanche method (pay off highest-interest debt first) or debt snowball method (pay off smallest balance first for motivation).
2. Try a balance transfer
Some low-interest or 0% balance transfer credit cards can help consolidate debt temporarily, but read the fine print carefully.
3. Consider a debt consolidation loan
This can simplify multiple credit card balances into one lower-interest payment – but only works if you stop adding new debt.
4. Speak with a Licensed Insolvency Trustee
If your credit card debt has become unmanageable, a Licensed Insolvency Trustee (LIT) is the only federally regulated professional who can offer all forms of debt relief, including solutions like a consumer proposal or bankruptcy.
Emma’s empowering journey to financial recovery
Emma found herself overwhelmed by credit card debt after losing her job during the pandemic. The financial strain led her to withdraw socially, feeling increasingly isolated from her friends and family who were often asking her to join expensive activities or dinners out. “Yes, I have withdrawn socially or isolated myself from friends and family,” she admitted, expressing the depth of her struggle.
Despite the odds, Emma sought help from Spergel. Through budgeting workshops and one-on-one consultations, she learned to manage her finances. Emma’s resilience shone through as she took control of her situation, eventually finding a new job. The relief of her financial burden allowed her to reconnect with her social circle and rebuild her confidence. Today, she uses her experience to encourage others:
“I used to let debt decide my happiness. Asking for help was the best decision I ever made.”
Read more on Emma’s success story.
How Spergel can help
We’ve helped over 100,000 Canadians break free from overwhelming credit card debt. When you work with Spergel, you can expect:
- A FREE, no-obligation consultation
- Guidance from your very own Licensed Insolvency Trustee to walk you through the entire end to end debt relief process
- A personalized debt solution with no judgment
- Offices across Canada and virtual appointments available
Debt may be common, but that doesn’t mean it’s healthy
So, how much credit card debt is normal? The better question might be – is my debt manageable for me? If credit card payments are consuming your budget, causing stress, or keeping you up at night, it’s time to take action. You don’t have to do it alone. Book a free consultation with Spergel today and take the first step toward debt freedom.