A Canadian network of licensed insolvency trustee firms, Bankruptcy Canada, is raising the alarm about the increasing cost of living, saying Canadian household debt is reaching record highs, the number of consumers missing payments is rising and insolvencies continue to increase.  

The firm says it has conducted research into insolvency statistics and trends which has yielded some startling facts.  

“Canadian household debt reaches a record high of $2.41-trillion, with 26 per cent or $626.6-billion being unsecured debts such as auto loans, credit card debt and installment loans,” they wrote.  

Auto loans 

Auto loan debt in particular is noted for climbing 6.2 per cent in a year. All told, the average debtor currently owes $55,328 in unsecured debt. Those under 30 saw the largest increases in their outstanding credit balances. Credit card balances for all Canadians increased 13.7 per cent over the prior year being studied.  

“As the cost of living continues to rise, more Canadians are turning to credit to make ends meet,” Bankruptcy Canada states. “Consumers missing payments of 90 days or more also continue to rise higher year-over-year.” 

They conclude saying as interest rates remain high, and as the cost of living continues to increase, the network expects to see consumer insolvencies continue to rise in 2024.