Credit Cards Create Financial Abyss for "Joe Debtor"

KITCHENER, ON, Feb. 28 /CNW/ - Look in the mirror. It is likely that you have more in common with the average bankrupt than you may think.  

In a new study, Hoyes, Michalos & Associates Inc. reveals that the average bankrupt looks very much like the average Canadian.  "We recently examined approximately 8,000 personal insolvencies filed in 2009 and 2010," said Douglas Hoyes, a trustee with Hoyes, Michalos & Associates Inc.  "We discovered that a typical insolvent person, who we call "Joe Debtor", is a male, 41 years old.  He has one dependent and has a monthly income of around $2,240, close to the Canadian average of just over $2,400.  He is not that different than the average Canadian" say Hoyes.

"Where "Joe Debtor" differs from the average Canadian is in his level of debt," cautioned Ted Michalos, a trustee with Hoyes, Michalos & Associates Inc.  "The average Canadian has consumer credit, excluding mortgages, of $16,399.  "Joe Debtor" owes almost $60,000."

The largest single category of debt for Joe Debtor is credit card debt.  He owes almost $24,400, which is much larger than the average Canadian's total unsecured debt.  More than half of all insolvent debtors owe money on four or more credit cards, and 95% of all debtors owe money on at least one credit card.

"Carrying a balance on one or more credit cards is a recipe for financial disaster.  Owing money on credit cards and other debts leads Joe Debtor to the financial abyss, because he's paying more than he earns each month to service his debt" concludes Hoyes.

More details on Joe Debtor, including detailed financial analysis, and a complete copy of The Face of Bankruptcy research study, can be found at

Hoyes, Michalos & Associates Inc., a consumer proposal and trustee in bankruptcy firm with offices throughout Ontario, helps people in financial difficulty.  Further information is available at

SOURCE Hoyes, Michalos

For further information:


Douglas Hoyes, CA, Trustee in Bankruptcy,
Ted Michalos, CA, Trustee in Bankruptcy,


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