Canada’s rate of personal insolvencies has fallen, but some groups continue to struggle with debt, finds a new study by bankruptcy firm Hoyes, Michalos & Associates.

Those groups include single parents, students and seniors. In fact, the study says people over the age of 60 carry the most debt (and have the highest payday loan debts of all age groups), while 13% of younger debtors have student loans.
Read: Are student loans the next big threat to markets?

Further, vehicle financing is bogging down more Canadians than in previous years.

On the upside, total unsecured debt levels across the country have decreased by 2% over the last two years—credit card debt has declined steadily since 2010.

“For many Canadians, much of their debt is incurred to service [existing] debt and ongoing interest payments,” says Douglas Hoyes, trustee with Hoyes, Michalos & Associates. “This cycle ultimately leads to insolvency.”


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