Most of Canada's household debt comes in the form of mortgages, but Canadians also owed $779.4 billion on things like credit cards at the end of June. As daycares shut down and parents moved to work from home en masse, "all of a sudden, people weren't paying $2,000 a month in daycare for five months," Terrio said. Insolvency trustee Scott Terrio is expecting a wave of bankruptcies and insolvencies to start this fall and winter. Those in the top 20 per cent, meanwhile, owed just $1.38 for every dollar of disposable income they had. Those imbalances are part of why Terrio predicts that insolvencies are going to come back "with a vengeance " in the coming months.

Source: CBC News September 11, 2020 17:48 UTC