Can you use An RRSP to pay off Debt?

Using RRSP  to Pay off Debts

If you have a sizeable debt load and are looking for some ways to have that debt reduced or paid off, you may be wondering if you could use your RRSP to pay off your debt. You may also be thinking, should I really use my RRSP to pay my debt?

Before Cashing in

Before you rush into cashing in your RRSPs, you need to consider all of your options available. You need to see if you are insolvent or not. If you are insolvent, you then may qualify for a government program. Getting the full facts before making this big decision can help you make a better informed decision for you and your family.

Avoiding Bankruptcy

This government program can help you avoid bankruptcy. Avoiding bankruptcy lets you keep your assets such as your home (mortgage payments) and car (auto payments), providing you keep up on the payments for each of these. Your unsecured debts are paid at a reduced rate into a monthly payments that is more controllable. Note, only contributions that have been made to RRSPs/RIFFs 12 months before filing, may be clawed back.

Consumer Proposals

This government program is call a consumer proposal. With a consumer proposal, your unsecured creditors are paid at a reduced amount. A proposal cannot be longer than five years. After this is completed, the individual is then released from the unsecured debt that was covered in the accepted proposal.

The Bankruptcy and Insolvency Act (which governs proposals) is designed to help protect people that are in financial distress, and helps people keep their RRSP and RIFFS. RRSPs/RIFFs 12 months before filing, may be clawed back.

Find Out More

Consider all your options before cashing in your RRSP to pay down your Debts. If you live in the Toronto Area, call us at 416-498-9200 to book a free consultation. During your consultation, we will review your finances in detail and go over all of your options for getting out of debt – in a professional and supportive environment.

 

 

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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