Zombie debt will haunt Canadians

Zombie debt will haunt more Canadians as scourge of indebtedness rises: experts

Source: CBC News
Author: Ross Marowits

Canadians with old debts beware: a momentary slip or lack of knowledge of your legal rights could result in past debts rising from the dead and coming back to haunt you.

Zombie debt — old accounts that may have been written off as “uncollectable” and which have passed the statute of limitations — is expected to increase due to Canada’s high level of consumer indebtedness, say insolvency experts.

Canadians have taken advantage of cheap money, with total debt per consumer surging to $71,979 in the second quarter, up from about $57,000 five years earlier, according to credit monitoring service Equifax.

Delinquencies are expected to rise once interest rates eventually climb and put stress on the ability of some borrowers to make payments.

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