When someone decides to consolidate, what are they actually carrying? Published debt statistics describe the whole population. Application data describes the moment of decision: the balance a person reports when they have decided to do something about it. This report covers the year to July 2026, drawn from Smarter Loans personal loan applications.
The debt behind the decision
Across Smarter Loans personal loan applications from August 2025 to July 2026, applicants who reported existing unsecured debt carried an average of $13,410, across more than 44,000 applications. That is credit cards, lines of credit, other loans and outstanding bills combined, and it is the number a consolidation decision starts from.
What they ask for against what they owe
Across the same Smarter Loans personal loan applications from August 2025 to July 2026, applicants citing debt consolidation as their purpose requested an average of $6,659. Set against $13,410 of reported unsecured debt, the typical consolidation request covers roughly half. That gap is not a shortfall. It is how consolidation usually works in practice: borrowers clear the most expensive balances and leave cheaper debt, like a car loan at a promotional rate, where it is.
How it changes with credit band
| Under 560 | $5,529 |
| 560 to 659 | $6,866 |
| 660 to 724 | $10,227 |
| 725 and above | n/a |
Source: Smarter Loans personal loan applications, August 2025 to July 2026.
n/a marks fewer than 100 applications.
Requests rise steeply with credit band, from $5,529 below 560 to $10,227 in the good band, because better credit opens larger loans at rates that make consolidating more of the load worthwhile. Source: Smarter Loans personal loan applications, August 2025 to July 2026; band is the TransUnion score recorded at application.
What this means if you are consolidating
Three things follow from the numbers. Size the request to the expensive debt, not the total; that is what most borrowers do and it is usually right. Expect your credit band to shape what you can consolidate more than your intention does. And treat the remaining balance as a plan rather than a failure, because the cheaper debt you left in place was cheaper for a reason. Our guides to how to consolidate debt with a personal loan and debt consolidation loans compared cover the mechanics, and the debt consolidation loans page compares lenders.
Frequently asked questions
How much debt do Canadians have when they consolidate?
Applicants who reported unsecured debt on Smarter Loans personal loan applications from August 2025 to July 2026 carried an average of $13,410, across more than 44,000 applications.
How much do Canadians borrow to consolidate debt?
Across Smarter Loans personal loan applications from August 2025 to July 2026, the average consolidation request was $6,659, roughly half of the reported unsecured debt, because most borrowers consolidate the expensive balances and leave cheaper debt in place.
Does credit score affect how much you can consolidate?
Sharply. Across Smarter Loans applications from August 2025 to July 2026, requests rose from $5,529 below a 560 score to $10,227 in the 660 to 724 band, because better credit opens larger loans at rates that make consolidating more worthwhile.
About this data
Figures are drawn from Smarter Loans personal loan applications between August 1, 2025 and July 31, 2026. Unsecured debt and requested amounts are self-reported at application, not verified balances or funded amounts. Averages are used throughout; the unsecured-debt figure covers applicants who reported any unsecured debt. Smarter Loans has connected more than 2 million Canadians with financing since 2016.
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The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
