“I don’t think it’s in trouble,” he said, noting most consumers aren’t overexposed. In areas where employment levels remain high (such as Alberta, which Statistics Canada reports has Canada’s highest per-capita consumer debt level), debt loads are “probably not such a big deal.” And so long as interest rates don’t rise past historically average levels, it would be “a bit of a squeeze, but that’s kind of manageable.”
One tool to slow rising debt levels could be changing the rules around qualifying for a mortgage. “Maybe they should be a little bit tighter at the moment,” Mr. Dodge said.