A report on insolvencies in Ontario reveals that most of those who have become insolvent have done so just trying to make ends meet.

Insolvency practitioners Hoyes Michalos and Associates have reported their two-yearly survey which reveals that ‘Joe Debtor’ is not financially irresponsible but is using debt to pay everyday living expenses.

The average debtor has an income below the provincial median and the household is likely to be experiencing financial problems even before the debt is included.

"The typical insolvent person in Ontario has just $302 left each month after paying their living expenses to repay debt that carries an estimated monthly interest of $960. The math just doesn’t work,” said Ted Michalos, Licensed Insolvency Trustee and co-founder of Hoyes Michalos.

In the last two years, the proportion of those becoming insolvent who are under 30 has risen 2 percentage points to 14 per cent with a third of those carrying student debt and 38 per cent having payday loans.

Seniors though are catching up fast, the report shows, with over 60s making up 12 per cent of all insolvencies in Ontario. Payday loans are an issue for this group too.

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