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If you are wondering what the current situation is regarding Canadian debt, then you are about to find out.  Like the average consumer, the Canadian government is also responsible for paying off their debt.

The current Canadian federal-provincial debt amounts to approximately 1.4 trillion dollars. This is a major increase from 833 billion dollars of Canadian debt that was established in 2008 as a result of the recession.

To get a better idea of the situation, the current Canadian debt is equal to about 67.5 percent of Canada’s economy. If every Canadian were to help pay off the debt, the amount would be around 37,476 dollars for each person.

As a result of accumulating debt, you have the responsibility of paying interest on that debt. The interest that Canadian debt has accumulated between federal, provincial, and municipal sectors, amounts to around 64 billion dollars.

That is approximately the same amount that the government spent on public, primary, and secondary education by the end of 2014. If everyone were to help pay the interest on Canada’s debt, the amount would be around 1,752 dollars per person. For an average family of 4, that would equal to over 7000 dollars.

The Affects of Canadian Debt

Canadian debt is a noteworthy issue. As a result of the Canada’s debt, a majority of our finances are going towards paying off the interest on this debt. This means that there will be less money available for the government to fund public priorities.

Public priorities can include funding towards health care, education, public transit or tax relief.  With out any money going towards public priorities, Canada will lose its edge in economic competitiveness.

We should look at the Canadian debt situation as an example to keep our finances under control. If you can’t properly pay off your debt, how can you expect to pay for anything else. With the current state of Canada’s economy, it’s time to start getting your finances under control.

We are Licensed Insolvency Trustees that have extensive experience in addressing financial issues and challenges such as those noted above as well as all the questions you may have, including managing credit.

Feel free to email us at info@dodicklandau.ca, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no-obligation consultation with one of our debt solutions’ experts.

Make an appointment today, and we will provide some solutions specifically tailored to your situation. We look forward to assisting.