Personal insolvencies 'moving up the income curve': study

Consumer insolvencies rose sharply in 2023 as Canadians racked up credit card debt to keep up with the high cost of living, according to the results from a new study.

The annual “Joe Debtor” study from insolvency trustee firm Hoyes, Michalos & Associates, published Monday, found that even higher-income people are now having difficulty managing their debts.

Doug Hoyes, co-founder of the firm that conducted the research, told BNN Bloomberg that the results marked a shift away from people using payday loans and rapid loans to make ends meet.

“Last year, the story was that now they're using credit cards,” Hoyes said in a Monday interview with BNN Bloomberg.