A recent study reveals a concerning trend for Canadians, particularly in the GTA: rising unsecured debt leading to increased insolvency risk. The Hoyes, Michalos & Associates “Joe Debtor” study found that insolvent Canadians owed an average of $67,496 in unsecured debt in 2025, an 11.2% increase in one year. Credit card balances accounted for 36% of that total, a decade high. Homeowners are also feeling the pressure, with a growing percentage filing for insolvency and facing negative equity. While mortgage renewals and interest rate fluctuations play a role, the underlying issue is the layering of credit to cope with financial strain. Experts warn that personal insolvencies could rise significantly in 2026. Read the full article to understand the factors influencing this trend and what it means for the GTA real estate market.
Source: [mpamag.com](https://www.mpamag.com/ca/mortgage-industry/industry-trends/canadians-filing-insolvency-carry-record-unsecured-debt/564767)
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