How Much Debt is Too Much Debt and When It’s Time to Find Help

Recent studies have shown that 2/3 of Canadian households hold some form of debt (Dojchinovska, Reviewlution). Are you included in this statistic? If so, now might be the right time to look at your current debt burden to make beneficial decisions going forward. Analyzing quantitative and qualitative factors are critical to determine if your current debt burden is too much.

Quantitative Factors

Quantitative factors include examining the financial side of your debt situation. The first quantitative factor to consider is your debt to income ratio. This calculation takes each source of income you are currently receiving and compares it to your loans outstanding. Loans outstanding include credit cards, auto loans, mortgages, student loans, and any other amount owed to creditors. An ideal ratio for the average Canadian is between 41-45%. 

In addition to weighing your debt to income, you should also consider your monthly payment. The debt to income ratio gives you an overall picture of your financial situation while analyzing your payments on a monthly basis can dive deeper into your current situation. If your monthly payment outweighs your income, you have too much debt on your hands. Your monthly loan payments should leave you with enough for savings and other miscellaneous expenses. 

Qualitative Factors

Qualitative factors are those that don’t include financial data but are still useful when determining if your debt burden is too much. When you look at your monthly expenses, do you have enough to cover everything? What about if you are constantly worried about bills? If you answered yes to either of these questions, odds are your debt burden is too high. Another qualitative factor to consider is your financial goals in the present and for the future. If you are struggling to meet your financial goals, your debt burden may be to blame. Spending high amounts of money each month paying off debt with interest cuts into the money you have leftover to put towards your goals. 

Resources for Help

Debt can be overbearing for many Canadians, leading to the need for effective resources to help tackle the mounting burden. The first resource to get in contact with is a qualified insolvency and accounting expert, like Faber Inc. Having an independent third-party analyze your current financial situation can lead to innovative strategies to tackle your debt. Furthermore, working with a qualified professional gives you the needed push to continue working towards your financial goals. Consistent reassurance and tracking of your progress will be key to attaining the proper help. 

Next Steps

The first step to understanding if your debt burden is too high is to analyze the quantitative and qualitative factors surrounding your situation. Once you have come to a conclusion, reach out to Faber In. Faber Inc is an expert at all things debt, making them your trusted expert when it’s time to bring in additional help. 


Dojchinovska, Anastasija. “17 Canadian Household Debt Statistics to Consider in 2021.” Reviewlution, 2022, Accessed 16 April 2022.