The unemployment rate dramatically increased, debt levels continue to grow, and yet the personal insolvency rate in Canada dropped to 20-year lows when the COVID-19 lockdowns started in the spring.  How long will insolvency rates remain low? Doug Hoyes and Ted Michalos review the unprecedented events of 2020, and offer their predictions on what will happen with debt and bankruptcy and consumer proposal filings in 2021, in one of our most anticipated podcasts of the year.  Enjoy!

Full details of everything discussed:

https://www.hoyes.com/blog/how-covid-19-affected-household-debt-in-2020/

 

Time Stamps

0:20 A review of Doug and Ted's predictions for 2020

2:12 With high debt and high unemployment, why insolvencies didn't skyrocket

2:50 The personal savings rate hit an all-time high; why?

3:48 The impact of CERB on household income

4:49 The problem with statistics

5:32 COVID-19 impact on high, middle and low income earners

9:00 An example of a middle income earner most impacted by the lock down

10:40 The impact of deferrals

13:40 What will happen with debt in 2021?

16:06 The psychology of spending; why some of us will not increase out spending early in 2021

16:41 Comments on the real estate market

18:53 Prediction time!

19:17 Ted's prediction

19:51 Doug's predictions

24:55 The impact of an economic recovery on insolvency filings