Every year we at @HoyesMichalos publish a comprehensive study of our filings for that year. We are required by law to collect pretty detailed financial information from our clients in order to present that info to the creditors in the insolvency proceeding. 1/

Our #JoeDebtor study is intended to provoke thought on the Canadian consumer generally based on the insolvency data.
One of the most striking findings is always the gap between homeowners and renters in the levels of their unsecured debt: credit cards, lines of credit, 2/

personal loans, payday loans, tax debt and student debt.
For 2020, the trend was the same, but widening:
Unsecured debt homeowners $86, 427.
Unsecured debt non-homeowner $46,987.
Counterintuitive, right? Homeowners are substantially more indebted in their unsecured debt than 3/

renters. But how can this be? Aren’t renters generally worse off financially than homeowners?
A lot comes with home ownership. Trappings. Unexpected or unforeseen expenses. None of them cheap. @Frank_McG refers to the “thousand dollar weekends” spent on home fixes. 4/

And then we compare. Do you want to have the crappiest house on your street? How’s your yard? Your windows? Your back patio set? Your garage? Your kitchen?
At the park, all you hear is talk of comparisons. Vacations, kids’ activities, cars, boats.
But there is also the 5/

credit factor: banks love homeowners, so they tend to lend them more unsecured debt than renters. The very home itself raises their creditworthiness. So combine all the tempting spending with willing lending partners, and that is why unsecured debt is nearly double that for 6/

renters in our dataset. The risk profiles are completely different.

The psychology of money.
-FIN