Learn to break the cycle of credit

Between inflation, housing costs and interest rates, debt is ballooning for many younger Canadians.

- NINA DRAGICEVIC

Scott Terrio sees it all the time. The manager of consumer insolvency at Hoyes, Michalos & Associates Licensed Insolvency Trustees says the average credit card balance in Canada is less than $4,500, but the cases he saw last year averaged more than $12,000 for this young group.

Terrio helps clients cut deals with creditors and avoid bankruptcies, if possible. Looking at his 2023 filings for clients aged 18 to 29 across Ontario, he said average credit card debt was up 34.5 per cent from 2022.

Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada Inc., notices the same trend. The national non-profit organization usually works with Canadians on education and debt restructuring but also sometimes refers clients to insolvency firms if their situation is dire.