Most Canadians believe theyвЂ™ll retire and be able to live comfortably. Unfortunately, many of them are wrong.
Most Canadians believe theyвЂ™ll retire and be able to live comfortably thanks to government pensions, company pensions and retirement savings. They believe their homes will be paid for, and they wonвЂ™t have any debt worries. Unfortunately, many of them are wrong.
Hoyes, Michalos & Associates released our latest Joe Debtor report this May. Every two years we analyze our client data to determine emerging trends in debt and insolvency filings. For the past five years, insolvency filings have been declining in Canada, so we werenвЂ™t expecting any revelations in our report. ThatвЂ™s why our discoveries were so disturbing.
People aged 50 and older carried the highest overall debt, and they also had the highest credit card and payday loan debts.
Such folks made up 30% of all insolvency filings during the period under review. This is a marked increase from our 2013 report, when they accounted for 27% of all filings. This percentage has increased with each study since we first analyzed our data almost 10 years ago.
To put the magnitude of the numbers in perspective, debtors 50 and over owed a total unsecured debt of $68,677 eachвЂ”21% higher than the average insolvent debtor and almost four times the average Canadian consumer debt of $18,207 per adult.