Paying Off Debt in Canada
Payoff order, debt vs investing, and options when debt is unmanageable.
Debt payoff is a math problem with a human side. This hub is for Canadians who want a plan: which debt to pay first, whether to invest instead, and what the options are when debt has become unmanageable.
Start with debt payoff versus investing, which makes the comparison fair, then the consumer proposal versus bankruptcy guide if you need formal relief. Rules for insolvency link to the Office of the Superintendent of Bankruptcy, and examples use labelled illustration balances.
Balance transfer cards are compared in the Credit Cards hub; credit scores are covered there too.
What this hub helps you decide:
- Should I pay off debt or invest?
- Which debt should I pay first?
- Would consolidation help?
- Consumer proposal or bankruptcy?
Updated November 2026 · 2 guides by Andrew
Start here
- Debt Payoff vs Investing: The Comparison That Is Actually Fair
- Consumer Proposal vs Bankruptcy in Canada
New to budgeting & saving? Read the overview first: A High-Performance Cash Flow System for Canadian Households.
All Debt Payoff & Credit Repair guides
Consumer Proposal vs Bankruptcy in Canada
A consumer proposal covers debts up to $250,000, excluding a home mortgage, and lasts at most five years. A first bankruptcy runs 9 or 21 months.
Debt Payoff vs Investing: The Comparison That Is Actually Fair
Match a risk-free after-tax debt rate against an investment you might abandon. Employer matches and RRSP brackets are exceptions. Mortgages are a different species.