ONTARIO – A research from Hoyes, Michalos & Associates has highlighted that the Ontario millennials in 2018 filed 37% of insolvencies. This value is more than the previous year as the last year insolvencies stood at 35%. It is quite surprising as this age group of people doesn’t really face the problem of debt but it the available data shows that millennials debtors owe $35,733 in unsecured debt. And about 50% of Ontario millennials debtors rely on Payday loans to deal with this issue.
In comparison to the previous generations, student debt has increased which has contributed to an increment in the number of millennials debtors on a large scale. In a press release, Doug Hoyce, the co-founder of Hoyce has found that there is a rise in student debt insolvencies as more millennials are passing the 7-year limitation for student debt forgiveness in a bankruptcy. There is an increment in the student debt from the previous year. In 2017, about 26% had a student debt which rose to 31% in the year 2018. Also, the value of an average student loan balance has risen by 4.2% to $14,311. And this figure is expected to shoot in the coming time. The presence of many online loan websites, such as paskolins.lt has made it easier to take a payday loan for millennials.
The alarming fact is that about half of the millennial debtors use easy to access, low-interest payday loans. After student debt, this is the second largest debt epidemic faced by millennials. 46% of millennial debtors were having at least one payday loan and this number was 40% in the year 2017. And the amount they owed is twice their average monthly net-income. But the thing to worry is that these credits are taken to meet the daily needs of living.