Hit new highs in debt load
Financial strain, new study reveals
A new study from Hoyes, Michalos & Associates Inc. analyzes individuals seeking formal debt relief and shows that the average unsecured debt among insolvent filers in 2025 climbed to $67,496. That is the highest level recorded since tracking began in 2011, reflecting sharp year-over-year growth and a significant increase over the past three years. The findings point to escalating financial pressure on households.
Debtors are entering insolvency later in their debt cycle, carrying more active accounts and larger balances when they finally file. This suggests many Canadians are attempting to manage mounting obligations on their own for longer periods before turning to formal solutions.
The report is just the latest in a line of red flags for the financial state of many Canadian households.
A recent report from Spergel found shows that more than half of Canadians (51%) carried new holiday debt into January, while 29% report starting the year with over $6,000 in fresh holiday-related balances. Three quarters say they feel more financially stressed than in previous years.
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