A recent report found that 49 per cent of all personal insolvencies last year were filed by millennials, even though they make up only 27 per cent of adult Canadians.
For many, federal CERB debt was the "final straw" pushing them into bankruptcy.
Ted Michalos is an insolvency trustee and co-founder of the firm that conducts the annual "Joe Debtor" study. During a recent appearance on Inside the Village, a weekly podcast produced by Village Media, Michalos said a lot of young Canadians — already saddled with student loans, mounting credit card debt and other high-interest loans — collected CERB during the pandemic without fully appreciating the eventual tax liabilities.
"I understood the need for the CERB benefits and certainly it helped a great number of Canadians, there is no denying that," Michalos said. "But the only way to do it very efficiently and quickly was to just make it a blanket benefit — and now there are an awful lot of people that are paying the price. Millennials aren't traditionally high tax debtors but now half of them have some sort of tax liability, and you account most of that to being paid a CERB benefit they probably shouldn't have applied for or been entitled to."
You can watch the full episde HERE.
Hosted by Scott Sexsmith and Michael Friscolanti, the Editor-in-Chief of Village Media, Inside the Village is a news and current affairs podcast that provides a weekly window into some of the best local journalism from across our chain of Ontario newsrooms. Produced by Derek Turner, the program also explores bigger-picture issues that impact people across the province.
Every episode is available on this news site /insidethevillage. If you prefer the audio version, it is available wherever you find your favourite podcasts.
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