Auto Loan Crisis: 1 in 5 Canadians Struggling with Car Debt Rising auto prices, higher interest rates, and longer loan terms have combined to create a growing strain on Canadian households. This summary condenses the main findings from the Talkin Debts article and explains what the auto loan distress means for borrowers, lenders, and the broader economy. 🔍 Key Insights from the Full Article Widespread strain: About one in five Canadians is having trouble keeping up with car payments, driven by higher monthly costs and stretched loan terms. Longer terms, more risk: Extended loan durations (84–96 months) lower monthly payments but increase total interest paid and raise default risk if incomes dip. Interest-rate sensitivity: Rising benchmark rates have pushed variable-rate loan costs higher and made refinancing less attractive for many borrowers. Credit and equity pressure: Negative equity (owing more than the car is worth) is common, limiting options for troubled bo...
Bankruptcy-Mill Lawsuits Are Pushing Debt Buyers’ Costs Higher Class-action and consumer lawsuits against so-called “bankruptcy mills” are increasing legal and operational costs for debt buyers. This summary pulls key points from the full Talkin Debts article and explains how litigation, court scrutiny, and reputational risk are reshaping the debt-buying market and collection economics. 🔍 Key Insights from the Full Article Rising litigation costs: Lawsuits alleging improper filings, robo-signed paperwork, and abusive collection tactics are forcing debt buyers to spend more on legal defense and settlements. Operational strain: Increased discovery, tighter compliance demands, and the need for better documentation raise the cost of buying and servicing portfolios. Credit market impacts: Higher risk and compliance costs can reduce the price buyers are willing to pay for distressed portfolios, shifting losses back up the supply chain. Regulatory and court scrutiny: Jud...