The issue of increasing debt levels is of great importance in Canada today. The International Monetary Fund report shows that Canada’s debt has risen to very high levels.
The major reason for Canada’s high debt levels is the decrease of intertest rate. The original purpose of decreasing interest rate is to let people purchase houses with lower interest cost. The lower interest rates can also reduce the pressure on people who have to pay back their mortgage. However, it turns out to be really risky for Canadians to have such high debt levels that even average Canadian household do not have the ability to pay down those debts. The potential threat behind this issue is that it may lead to economic depression. 
Since last year, BC government has brought down the barrier of buying houses which provides consumer confidence to purchase houses at this time period. As a result, household debt shows a significant growth. It is mentioned in Canadian’s household debt burden hits record, “for every dollar of household disposable income there was $1.68 in credit market debt. “ The high debt levels indicate the unsustainable market and the potential threats of the market. The demand will be much more than supply in the future. In order to adjust the market, the interest rate will be increased. At that point, some people who have the mortgage will not be able to pay back, and this will lead to economic depression.
Furthermore, the decrease in supply and increase in demand are two of the major reasons of causing inflation. In my opinion, in order to control inflation and debt levels, the Bank of Canada should lower bond price and slowly increase interest rates. These two methods can help reduce money spending as people will be more cautious. When spending decreases, prices decrease, so inflation will slow down. On the other hand, people are no longer as likely to borrow money from banks because of the high-interest rate. Therefore, the debt levels is going to decrease in the long-term.
References
http://qualicuminstitute.ca/federal-debt/
https://www.romania-insider.com/romanias-public-debt-reaches-new-record-high/