New report reveals the segment that is labouring under the worst financial struggles
Millennials accounted for nearly half (49%) of all insolvencies in Canada last year, according to a new study by Hoyes, Michalos and Associates Inc.
Canadian millennials owed an average of $47,283 in unsecured debt in 2022, despite the demographic currently accounting for less than 27% of all Canadians aged 18 and over.
“Millennials were the only age group to see a rise in their unsecured debt obligations last year,” said Doug Hoyes, licensed insolvency trustee.
Credit card debt was the most common financial accountability for the demographic, with 87% of millennials owing an average of $13,948. More than half (55%) also held at least one extremely high-cost loan with an average balance of $11,940, while 46% had tax debts averaging $12,137.
As much as 35% of millennials carried student loan debt, with an average balance of $16,725 in 2022.
“The average insolvent millennial is just 33 years old, yet they are 1.7 times more likely than baby boomers and 1.4 times as likely as Generation X to file insolvency, relative to the population,” said Ted Michalos, licensed insolvency trustee.
“We’ve noticed an overall trend since 2016 that the average insolvent borrower continues to get younger, with student loan debt and extremely high-cost loans being the main drivers of their insolvency.”
