Millennials Dominate Insolvencies as Credit Card, Student Loan, CERB Tax Debts Add Up

As the COVID-19 pandemic continues to ravage economies around the world, young people are feeling the pinch more than other demographics. According to a recent report, millennials (those born between 1981 and 1996) are dominating insolvencies in Canada, with credit card debt, student loans, and CERB tax debts leading the way.

The report shows that the number of millennials filing for insolvency was up by 3.5% compared to the same period last year. In contrast, bankruptcies filed by baby boomers (those born between 1946 and 1964) and Generation X (those born between 1965 and 1980) were down. This suggests that millennials are feeling the greatest financial stress resulting from the pandemic.

One of the major culprits is credit card debt, with many young people turning to their cards to make ends meet during the pandemic. This puts them at risk of falling into a cycle of high-interest payments and spiralling debt. Student loan debt, which is already a problem for many millennials, has also been exacerbated by the pandemic. Many graduates are finding it difficult to secure jobs that pay enough to service their debt, and this is pushing them towards insolvency.

Finally, the report highlights the role played by the Canada Emergency Response Benefit (CERB) in driving up insolvencies. Many millennials received the benefit to help them cope with the pandemic, but some of them are now struggling to repay it.

In conclusion, the pandemic has hit young people hard, and this is evident in the rising number of millennial insolvencies in Canada. While credit card, student loan, and CERB tax debts are the main drivers of insolvency, they are symptomatic of a broader problem: a generation that is struggling to make ends meet in an uncertain world. This is an issue that deserves urgent attention from policymakers and society as a whole, as it has implications for the financial well-being of millions of Canadians.