5 Tips For Living Debt Free In Toronto

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Do you lose sleep over the amount of debt you’ve accumulated and can’t see a way out? Do you dream about living debt free in Toronto and finally start saving for your retirement?

Living debt free in Toronto is a realistic goal, but how you get there depends a lot on how much debt you have and what kind.

At David Sklar & Associates, we help people who are in over their heads. We file Consumer Debt Proposals and bankruptcies for individuals and businesses who can’t keep up with their payments.

#1 Pay The Full Balance On Credit Cards

Credit card debt is one of the quickest ways to find yourself in trouble with unsecured debt, as credit cards come with high interest. When you pay the full balance on your credit card, you’re not paying any interest, and it effectively works like a debit card that helps you build your credit score, rather than hurting it.

#2 Never Use Payday Loans

As Licensed Insolvency Trustees, here at David Sklar & Associates we often encounter individuals who have gotten into trouble with debt by relying on payday loans. Payday loan usage among Canadians has doubled in the last five years, and Canadians’ debt loads have likewise increased to alarming amounts. Even more troubling, just under half of people who use payday loans don’t understand the interest rate they’re being charged. You may feel like you need the money, but stop for a minute and calculate the actual interest rate before you borrow. It will only put you in a tougher financial situation later on.

#3 Never Borrow For Living Expenses

Living expenses are predictable costs, and cutting them down can be painful. If you find yourself relying on credit cards or payday loans to cover everyday expenses, you need to trim down your lifestyle. For some, that may be as easy as controlling impulse shopping or heading to the No Frills instead of Loblaw’s, but for others, it may mean downgrading from your home to a condo or a rental, or trading in your car for a subway pass or the GO train. Given the average of cost of operating a car, and the high cost of parking in downtown Toronto, if you commute 20 km 5 days a week, you could save $300 a month by switching to public transit.

#4 Don’t Use Debt Consolidation

Debt consolidation lenders advertise aggressively to “help” people buried under debt. Here’s how it works: a lender like a bank or debt consolidation company lends you a lump sum to pay down all your credit card bills, payday loans, and other unsecured debts. But, debt consolidation can get you into even more trouble down the road, with interest rates as high as 30 percent. You can quickly find yourself buried, and you may need debt consolidation loan help. A better alternative that we can help with at David Sklar & Associates is a Consumer Proposal: a legally binding renegotiation of your debt with all your unsecured creditors.

#5 Save For Your Retirement

The secret to long-term financial success is saving for your retirement, something only half of working Canadians do. Once you leave debt behind, you can start investing in your retirement by opening an RRSP or investing in property.

If you’re ready to start living debt free in Toronto, check out our blogs for advice on handling debt of all kinds, including payday loans, CRA debt, mortgages, and more. Debt consolidation may be the answer, while a Consumer Proposal can help get you out of dire circumstances. The answer might be as easy as curbing your spending. Ask us about Consumer Proposals and credit counselling to restart your financial future.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The team at David Sklar and Associates Inc are very professional and are willing to help you get out of debt. Highly recommended.
Melissa MacKenzie
12:35 29 Mar 23
I would like to thank the team at David Sklar and associates inc. for all the time and effort they put in to support this process for me. This topic can be challenging to disclose but a big thank you to Christine for going above and beyond in guiding me through all my options and supporting me through the decisions. I cannot recommend this group enough , as they have shown me compassion , knowledge , and understanding throughout the entire process. I look forward to the next step of this process and learning how the proper way of becoming financially educated through the support of their financial counselling team. For anyone who is struggling , just know that there is a wonderful group of educated professionals at David Sklar who are available to help!
Michelle Plouffe
18:45 14 Mar 23
It took me awhile to get up the courage to contact David Sklar but I’m so glad I did. Trina walked through my options with me and provided the knowledge I needed to make a decision to help turn my financial situation around. She is patient and empathetic and answered any and every question that I had. Trina provided me the reassurance I needed that I was making the best decisions for me and my family. I’m so happy that I reached out and now have a plan to get back on track.
M. Mackenzie
19:59 12 Mar 23
Trina was very helpful and thorough.
Sam M
15:26 12 Mar 23
Christine was very helpful, kind, and understanding. She explained everything thoroughly, answered any questions I had, and was responsive to any concerns I had. 100% would recommend
Katherine Campbell
17:29 08 Mar 23
Jackie Stanley is excellent she took the time to explain everything to me and I am so grateful to her for giving me a fresh financial start so if you have any doubts don’t and go see her if you want to achieve financial freedom!
Heather Helfield
21:24 06 Mar 23
Amazing friendly staff that knows what they are going. They make a difficult situation not so bad. Would give 10 stars if I could.
alie Balan
22:37 25 Feb 23
Very helpful and kind and gave me all the available options before helping me decide which one was best for me. I would definitely recommend Jackie
Alison Rivard
01:01 21 Feb 23
Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
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