The latest Canadian Joe Debtor study finds that the average insolvent debtor owed $60,678 in unsecured debt in 2024, an increase of 12.2% from 2023—the largest annual rise since the study began in 2011.
Driving the surge was a sharp rise in average credit card balances, which increased by 25.9% to $20,398 and accounted for 34% of total unsecured debt.
While balances rose across all age groups, millennials experienced the steepest increase, with credit card debt climbing by 35.0%. Senior debtors (aged 60+) carried the highest average balances at $27,543.
Insolvent homeowners faced a significant erosion of home equity in 2024, with average equity falling from 21% to 10% and 14% of homeowners experiencing negative equity. Vehicle loan shortfalls also re-emerged, with 31% of financed vehicles now underwater—a level not seen since 2016.
“Looking ahead, we expect consumer insolvencies in Canada to rise by 20–30% in 2025, driven by rising unemployment, record-high credit card debt, financial stress from elevated mortgage renewal rates, and challenges in the pre-construction condo market.”
Canada’s national unemployment rate was 6.6% in January and 8.7% in Toronto, the nation’s largest city. The latest Statistics Canada data shows that nearly 1 in 11 Toronto region workers are now unemployed and seeking work—a rate rarely seen outside the worst recessions. See, Toronto’s unemployed population hits 357k.
The threat of U.S. tariffs adds uncertainty to an already delicate economy and over-valued real estate market. RBC Economics notes, “The significant risk that tariffs pose to Canada’s economy casts a potentially dark shadow over the housing market.”
Bankruptcy Trustees Doug Hoyes and Ted Michalos discuss the latest data in the segment below and why they think financial strains will worsen in 2025.
Canadians are being crushed by debt—and we have the data to prove it. In this exclusive episode, we break down the findings from the 2024 Joe Debtor study, Canada’s leading consumer insolvency report. Our research reveals how rising debt levels are impacting Canadians like never before. From millennials facing record-high debt to homeowners running out of options, we analyze the trends, why they matter, and what the average insolvent Canadian looks like in 2024. You won’t hear this anywhere else—tune in for expert insights from Canada’s leading Licensed Insolvency Trustees. Here is a direct video link.