Posthaste: Millennials overtake baby boomers on debt for the first time
Millennials are now the largest debt holders in Canada, overtaking baby boomers for the first time, says a quarterly study out today.
TransUnion’s Consumer Pulse for the fourth quarter of 2024 shows this group, aged 29 to 44, hold 27 per cent of credit accounts, the largest share of consumers by age group in Canada’s credit market.
Millennials also hold the most debt at $911 billion, about 38 per cent of all Canadian debt.
TransUnion says this is likely because millennials have reached the age when they are having children and buying homes, but they are not finding the debt an easy burden to bear.
The study found that 26 per cent of Canadians say they expect not to be able to pay at least one of their current bills and loans in full, but that rate rises to 35 per cent among millennials, the highest rate of any age group.
The Bank of Canada has cut its interest rate from 5 per cent to 3.25 per cent since last June, easing the pressure on indebted consumers. But the study shows that Canadians continue to feel the pinch on their personal finances.
“While economic indicators show that consumers are likely to enjoy some relief from their financial pressures in 2025, many are still navigating the challenges caused by the highest interest rates since 2001 we recently experienced,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada.
Despite this, 22 per cent say they intend to take on more debt or refinance in the coming year, a sign that some Canadians are turning to credit to make ends meet.
Another study by insolvency trustee Harris & Partners found over half of Canadians polled have borrowed money in the past two years just to cover essentials like food, rent, or utilities.
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