Canadians born in the millennial demographic filed half of all insolvencies last year, according to an insolvency trustee.
The “Joe Debtor” study from Hoyes and Michalos (HM) released on Monday said half of Ontario clients that cannot pay debts on time were between the ages of 26 and 41.
While co-founder Douglas Hoyes confirmed this number was specific to HM, he believes the findings are consistent with all cases across Canada.
“Based on my conversations with government and various creditors, our conclusions are representative of the entire insolvent population,” he said.
According to the study, Canadians have a common problem.
“We have seen not just an increased use of traditional payday loans, but a […] dramatic rise in the use of larger, longer-term, ultra high-cost loans,” the report read.
Half of millennial clients carried loans with interest rates typically between 29.99% to 59.99%, the report said. The average balance for these was $11,940.
Notable percentages of millennial insolvency cases also carried student debt (35%), credit card debt (87%) and owed taxes (46%).
Last October, True North reported that a quarter of Canadians reported going into debt to keep up with everyday expenses.
