Debt: The New Normal? Comparing Boomer and Millennial Mindsets

·31 min·2 clips

Millennials now account for over 50% of insolvency filings, with credit card debt surging 35% in just one year.

Host Doug Hoyes and co-host Ted Michalos, both licensed insolvency trustees over 60, examine the generational divide in financial attitudes and realities. They specifically contrast the experiences and debt burdens of baby boomers with those of millennials. The episode uses their annual Joe Debtor Bankruptcy Study to ground the discussion in data. The 2024 study reveals millennials, aged 28-43, now constitute 50.1% of all insolvency filings. For this group, secured debt climbed 16.4% to an average of $60,148, while credit card debt saw a staggering 35% annual increase. Counterintuitively, the data shows that among insolvent clients, credit card debt actually increases with age, with those over 60 averaging $27,000 compared to $20,000 for those in their 30s. The hosts note that, when adjusted for inflation, millennials have higher household incomes than boomers did at the same age, citing a 2016 example of $44,000 versus $33,000 in 1984. They attribute part of this income gap to "credential creep," where advanced degrees are now required for jobs that previously didn't need them. A major focus is housing, illustrating that a 20% down payment on a million-dollar home is $200,000, a sum nearly impossible to save given current costs. Using an Ontario example, they calculate that someone earning $85,000 has only about $20,000 annually left for savings after essential expenses, assuming a perfect financial life. A key insight is that the core divide isn't age but asset ownership, particularly benefiting those who bought real estate decades ago. The hosts argue debt is now a "normal" starting condition for younger generations, unlike the boomer view of debt as a specific tool for major purchases. They link this shift to the decline of cash, the ease of digital payments, and the necessity of student loans. The discussion covers the erosion of traditional job security and benefits, contrasting past stable employment with today's gig economy. They explore new credit "flavors" like buy-now-pay-later plans, which psychologically encourage more spending. A surprising political observation notes the 2025 federal election showed a stark voting split along age lines regarding economic policies. The hosts conclude that wealth accumulation fundamentally requires spending less than you earn, but acknowledge this is increasingly difficult for younger people facing high fixed costs. The tone is conversational and educational, blending data analysis with personal anecdotes and light generational ribbing. The style is practical, focusing on explaining financial realities rather than assigning pure blame. This episode is ideal for millennials seeking to understand their financial pressures or boomers wanting perspective on younger generations' economic challenges. Listeners interested in personal finance, generational economics, or debt trends would find it valuable. Those seeking highly technical investment advice or political commentary might want to skip it.

As heard by us

A blunt reminder that assets, not age, do most of the talking.

Doug Hoyes and Ted frame a familiar boomer-versus-millennial debate as a clear look at money, starting points, and the uneven weight of debt. The useful turn comes when the discussion moves away from age as a catchall and toward the practical realities of houses, stocks, student…

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If you want a blunt take on why the first million is the hardest.

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