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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I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
Hi there! I am very glad to met this company, especially Jackie Stanley. Thanks for her great work and help me to save my money! Very appreciable!
Mehri Agil
02:43 26 Oct 22
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