Canadian household debt is the highest in the G7 as a percentage of income. While mortgages make up most of this, credit card debt, lines of credit, and HELOCs (Home Equity Lines of Credit) can be expensive traps.
Canadian debt types and their costs
| Debt type | Typical rate | Priority |
|---|---|---|
| Credit card (standard) | 19.99-22.99% | Highest |
| Retail store card | 24.99-28.99% | Highest |
| Unsecured personal loan | 8-18% | Medium-high |
| Student loan (federal) | Prime rate (no interest since 2023) | Low |
| Line of credit (unsecured) | Prime + 1-5% (~8-12%) | Medium |
| HELOC | Prime + 0.5% (~7.7%) | Lower (secured) |
| Mortgage | 5-6.5% (fixed/variable) | Lowest |
💳 Credit Card Payoff Calculator (CAD)
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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