$24,790 — That is the average Alberta household debt (excluding mortgages) sitting on kitchen tables across the province right now.
If seeing that number makes your stomach drop, take a breath. You aren’t the only one staring at a balance that refuses to budge. At BNA Debt Solutions, we speak with hardworking Albertans every day who earn solid incomes but feel their progress is slipping away. They do everything “right,” yet the debt still feels harder to manage.
Most people assume Alberta’s higher consumer debt is just about groceries or inflation. But the numbers tell a different story. It’s usually far more specific than the price of milk. According to Canada’s 2024 Consumer Debtor Profile, the top drivers of financial hardship include loss of income (45%), medical reasons (20%), and relationship breakdown (11%).
To understand why your own bills feel so heavy, we first need to look at how our province stacks up against the neighbours.
Let’s see how our numbers stack up against the average Canadian
In fact, a recent report confirms that Canada has the highest household debt level among G7 countries, and Alberta’s population is feeling that weight more than most.
It is easy to take this personally. But when you zoom out, you realize it is actually a provincial trend. We are carrying a heavier financial load than most Canadians.
Equifax Canada ranks Alberta second only to Newfoundland regarding insolvency risk and debt loads. We have the highest average debt, and that isn’t just about consumer spending; it’s about the financial situation unique to our economy. High housing, grocery, and vehicle costs often push Alberta households to rely more heavily on credit, increasing financial strain over time.
Here is the reality of the gap:
| Metric | Alberta Average | National Average |
| Average Non-Mortgage Debt | $24,790 | $22,321 |
| Delinquency Rate | 2.00% | 1.63% |
| Debt-to-Income Ratio | 158% | 174.8% |
Data source: Equifax Canada and Statistics Canada.
More Albertans are dealing with higher carrying costs than the average Canadian. We carry more debt, and because of that, rising interest rates hit us harder. When the prime rate jumps, it isn’t just a headline in the Financial Post; it’s a direct hit to the lines of credit and variable-rate loans that so many of our households rely on.
But averages can be deceiving. When we peel back the layers and look at specific cities, we see that some areas are carrying a much heavier load than others.
Why numbers in Fort McMurray look so different from Calgary
You might look at that provincial average of $24,790 and think, “I wish my debt were that low,” or maybe “I don’t owe near that much.” That is because where you live in Alberta changes the financial pressure significantly.
The economic reality in Wood Buffalo is different from that in the Beltline.
The Fort McMurray Outlier
The difference in Fort McMurray is notable. Equifax’s latest Market Pulse data puts average non-mortgage debt there at $37,830, which is far above the national average debt.
Why? It comes down to the energy sector’s volatility. High income allows for high borrowing. You qualify for the boat, the sleds, and the truck when oil prices are high.
But debt payments do not adjust down when the price of oil drops. The payments stay fixed while the income fluctuates. This can create a cycle where credit is used to maintain a standard of living that made sense when incomes were higher
The City Split
Even our major metros are splitting from the national trend.
- Calgary: $24,451
- Edmonton: $23,867
Both major cities are sitting above the average Canadian levels of $22,321.
Recent data shows that consumer debt in Alberta’s northern regions is heavier than the national trends captured in the OSB’s 2024 debtor profile. If you are in these areas, your cost of living and your debt load are likely higher than your cousin in British Columbia or the Atlantic provinces.
So we know we owe more. The next logical question is: what exactly are we buying that puts us so deep in the red?
It is not just groceries driving these numbers up.
When you review your bank statement, it is natural to blame the cost of eggs or the carbon tax. Rising costs and the cost of living are certainly factors. 69% of us rate it as our top concern.
But one of the biggest contributors is often sitting in the driveway.
The “Alberta Vehicle” Factor
We need to talk about auto loans. In Alberta, we drive. We drive to the mountains, we drive to the site, we drive across the city.
Auto loans are a significant component of the province’s total debt. It is not uncommon to see households carrying payments on two high-value vehicles, each costing $80,000 or more.
National insolvency data reinforces this trend. Approximately 64% of insolvent Canadians own vehicles. When interest rates were low, these payments were manageable. You could finance a truck at 0.9% or 1.99%.
Today, interest rates on vehicle financing have surged. If you have to renew a loan or buy a new vehicle, you are looking at 7%, 8%, or even 9%. That jump adds hundreds of dollars to your monthly obligations without improving your quality of life.
The Interest Trap on Lines of Credit
It’s not just trucks. It’s lines of credit and credit card balances that fluctuate with the prime rate.
This is the “lag effect.” With costs rising several cents year over year, we are just now feeling the compounded pain of rate hikes. Even if spending stops, balances can continue to grow due to interest alone.
Credit that felt manageable in 2021 is now expensive. This is why many people feel stuck despite cutting back. More debt accumulates simply because the cost of servicing the old debt has doubled.
Carrying high balances is stressful, but manageable if you have the cash flow. The problem is that for many families, the cash flow has officially run dry.
We are missing payments more than anyone else right now
This is the hardest part of the conversation. It’s one thing to have a lot of total debt; it’s another thing when you have to choose which bill to skip just to keep the lights on.
According to Equifax Canada data, Alberta leads the country in missed payments. This is a separate trend from Canada’s national insolvency profile, where the insolvency rate reached 4.2 per 1,000 adults in 2024.
The Delinquency Spike
Alberta has the highest delinquency rate in Canada at 2.00%.
To put that in perspective, the national average is 1.63%. In British Columbia, it is even lower.
Stats from the second quarter show that challenges persist, and we are missing payments at a higher rate than other provinces. The data is clear: The debt-service ratio in Alberta rose marginally to 14.4%, which is higher than before the Bank of Canada started increasing its policy rate. This indicates the buffer in our finances is gone.
For many families, there is no longer room to shift payments from one bill to another.
The “Heat or Eat” Reality
Research from a recent MNP survey highlights a concerning statistic: nearly half (47%) of Albertans are within $200 or less away from financial insolvency each month. That means if rising costs hit the utility bill, or if the car needs a $300 repair, they cannot pay their debts that month.
This leads to difficult tradeoffs, where households cut back on essentials just to keep debt payments current. It is a stress that affects every age group, from young families to seniors.
It paints a grim picture, but there is actually a really strange contradiction in the data that we need to address before we talk about solutions.
The strange reality of having high debt and high savings
If you’re struggling, it might feel frustrating to hear that Alberta is also near the top when it comes to household savings.
How can we have one of the highest average debt levels, the highest delinquency rate, but also high savings? It is the paradox of the Alberta economy.
Consumer Insolvency Debtors have a median of just $15,142 in assets, which means a large portion of households have very little financial cushion. Yet, aggregate data shows Alberta with strong savings numbers.
The Province of Extremes
We have some of the highest debt, but also one of the highest savings rates in some demographics.
- Group A: High earners in the energy sector or specialized trades who have weathered inflation well. They are saving aggressively, paying down mortgages, and building wealth.
- Group B: Families hit by layoffs, rising costs, or rising interest rates on variable debt. They are under significant financial pressure.
The “average” blends these two groups, masking how challenging the situation is for many households.
If you are in Group B, this explains why your financial reality looks so different from the people around you. You may be watching neighbours buy new RVs or renovate their homes, while your priority is simply keeping up with core bills like utilities.
This means you can’t simply expect the economy to “recover.” Even if we see lower interest rates in the coming year, the drops may be too modest to fix the problem for you. For many households, the numbers no longer work without direct intervention.
If you are on the debt side of this divide, waiting is not a strategy. At this point, the outcome depends on choosing the right debt solution, not on external economic changes.
The next step is understanding which options actually apply to your situation.
Here is what you can actually do about it
We’ve looked at the scary numbers, the city breakdowns, and the causes. Now let’s turn this anxiety into a plan.
Many Canadians feel overwhelmed by their debt, indicating a need for effective management strategies.
Before looking at legal options, it makes sense to start with the basics. Creating a budget is the first step to managing debt. For some, reducing discretionary spending is a common strategy, while building an emergency fund can help manage unexpected expenses and reduce reliance on debt.
However, if you have already cut back and the math still doesn’t work, you have options that average Canadians in other provinces don’t even have access to, or might not be aware of.
1. The Alberta Advantage (OPD)
Alberta is unique. We have access to a program called the Orderly Payment of Debts (OPD). This is a federally backed program, and it’s only available in a few provinces. Including Alberta (and also places like Nova Scotia, Saskatchewan, and Prince Edward Island).
How it works:
- It consolidates your unsecured debts into one payment. The critical advantage is that it creates a fixed 5% interest rate.
- If you are drowning in credit card balances with 22% interest or payday loans that can work out to about 365% annually, dropping that rate to 5% can change the math instantly. It allows you to repay 100% of the principal, but without the crushing weight of high interest rates.
This is often a good fit for those who can afford to pay back everything they owe, but just need the interest to stop growing.
However, OPD is not the right solution if your debt payments already exceed your available income, if you have significant arrears you cannot catch up on, or if paying back 100% of the debt is no longer realistic. In those cases, a legal restructuring option may be more appropriate.
2. The Legal Reset (Consumer Proposal)
If paying back 100% of the debt is mathematically impossible and your debt payments exceed your available income, then you might want to consider a Consumer Proposal.
This is where a Licensed Insolvency Trustee (LIT) comes in.
A Consumer Proposal is not bankruptcy. It is a legally binding offer to your creditors to pay back a percentage of what you owe. After a Consumer Proposal is officially filed, the following protections take effect:
- Stops Interest: Interest stops immediately (0%).
- Stops Collections: It creates a “Stay of Proceedings” that legally stops wage garnishments and collection calls.
- Asset Protection: Unlike bankruptcy, you generally keep your assets (like your home and vehicle), provided you keep making the payments on secured debts.
3. Personal Bankruptcy
Sometimes, the hole is too deep. If you have lost your income entirely or the debt load is massive compared to your earning potential, bankruptcy might be the best way to reset.
In Alberta, bankruptcy is a legal process that discharges you from most of your debts. It is a more complex legal step than a proposal, but it can provide major legal relief from most debts, subject to rules and exceptions.
Why are Consumer proposals back above pre-pandemic levels?
Consumer Proposal filings are back above pre-pandemic levels, specifically because they work for this specific type of non-mortgage debt.
If you have $24,790 in unsecured or consumer debt and your take-home pay has stayed flat while inflation has risen, paying that debt off at 19.99% interest will take decades. A proposal treats the debt as a math problem: what can you actually afford to pay?
Example:
Imagine a client in Red Deer with $30,000 in unsecured debt.
- Minimum Payments: ~$900/month (mostly interest). Time to pay off: 20+ years.
- Consumer Proposal: Negotiated payment of ~$300/month for 5 years. Total paid: $18,000. Debt gone in 60 months.
This is not a loophole or a shortcut. It is federal law designed to help honest but unfortunate debtors move forward.
You are more than just a debt statistic
We started this article with a single number: $24,790. But that number is a snapshot — just one part of the story.
Rising costs and interest rates are outside your control. But the decision to deal with the debt is not. Whether you are in Fort McMurray, Red Deer, or Calgary, getting clear, professional advice is the practical first step toward changing the outcome.
You do not have to accept the “average” as your outcome.
If you want to understand what these numbers mean for your situation, a conversation is the first step.
