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Millennials in Canada fastest growing cohort filing insolvency

Staff Writer |
Updated research by Licensed Insolvency Trustee firm Hoyes, Michalos & Associates reveals that 37% of Ontario insolvencies in 2018 involved Millennials, up from 35% in 2017.

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On average, Millennial debtors owed $35,733 in unsecured debt, less than any other cohort, yet still an overwhelming burden that is causing Millennials to file insolvency at a faster rate than any other age group.

More than three in ten (31%) Millennial debtors carried student debt, up from 26% in 2017 while their average unpaid student loan balances increased 4.2% to $14,311.

In 2018, 46% of all Millennial debtors had at least one payday-style loan, up from 40% in 2017. Those using payday loans owed, on average,

4,792 on 4.1 loans or almost two times their average monthly net-in come.

Millennial debtors with credit cards saw their average credit card debt increase 6.9% to $11,716 while personal loans among Millennial debtors increased 3.8% to $14,370.

While 88% of Millennials debtors are employed when they file insolvency, their average take-home pay of $2,431 is 3.9% less than the average Joe Debtor and 10.3% less than a Generation X debtor filing insolvency.

In 2018, just under 3% of all Millennial debtors owned a home at the time of filing. Having been largely locked out of homeownership, they are unable to refinance their debt at lower rates through any rising equity in their home.

Millennial debtors are defined as insolvent debtors aged 22 to 37 in 2018.

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