5 Tips For Living Debt Free In Toronto

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 and live in the Toronto area, call us at 416-498-9200 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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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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