Around half of all insolvencies filed in 2022 were by millennials, despite only accounting for less than 27 per cent of the Canadian population aged 18 and older, according to a new study.
A study conducted by licensed insolvency trustees Hoyes, Michalos and Associates Inc. released Monday, revealed that 49 per cent of insolvencies in 2022 were filed by millennials. The study also found millennials were the only age group to see a rise in unsecured debt obligations during the year.“The average insolvent millennial is just 33 years old, yet they are 1.7 times more likely than Baby Boomers and 1.
“And when you're starting off in the hole, it makes it difficult to buy a house, get married, have kids and so you end up resorting to things like credit cards to make ends meet [or] high-cost loans,” he said, adding that factors related to the pandemic have put millennials back even further. Credit card debt was held by 87 per cent of millennials involved in the study in 2022. Average credit card debts held by the age group increased by 1.5 per cent year-over-year to $13,948.
“We are seeing not just an increased use of traditional payday loans, but a much more dramatic rise in the use of larger, longer-term high-cost loans,” Doug Hoyes, a licensed insolvency trustee and co-founder at Hoyes, Michalos and Associates, said in the release.
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