Getting out of debt on a low income

Get Out of Debt

Advise on getting out of debt and saving money

Growing debt for anyone can become more of a concern if that amount just keeps on piling up and there seems to be no end in sight with being debt free. At any income level, if your spending habits get out of hand, and you are living beyond your means, then you can easily have debt that is out of control.

Budgeting!

At any income level, you need to have a budget so you know exactly how much is coming in and how much you are spending on your fixed expenses, and most importantly your variable spending. Not keeping track of these for all parties in your family can potentially lead to a debt disaster.

Options for Reducing your Expenses

We designed a money management series to specially help people in these types of situations. Taking control of your financial statements is the first step towards lessening your debt levels. http://davidsklar.com/blog/budget-basics-overview/

Reviewing your currently monthly expenses is a good place to start to have an idea of exactly what is happening with your finances.

Fixed expenses

Your fixed expenses such as rent/mortgage for example will not be an easy change in the short term for many.

Mortgage / Rent – take note of your monthly rent or mortgage payments. For your mortgage payments, take note of your interest rate, if your mortgage term is coming up, you can look to shopping around for a better rate. If you are Renting, then look at getting a smaller place at a lower cost to help keep your overall monthly costs down.

Credit Card Payment – For all of your credit cards, this includes store credit cards as well. Take note of the amounts owning on each card and their interest rates. The interest rates for some cards could be much higher than others. The interest rates on some of your cards could surprise you. Try sticking to one credit card. Try to avoid having credit cards from your favourite stores, many times their interest rates are high, and if you keep a balance on them, all that savings you thought you were getting are now gone.

Loans (Auto Loans Etc) – for every loan that you have, take note of the time left on the loan, the interest rate and amount owed.

Variable Expenses

Your variable expenses will be one of the main areas that you may discover you are spending more that you thought you were, and there can be areas where you will need to curb your spending habits. You can expand the main categories below depending on your spending habits so you can get a better idea of your approximate spending in each area. You could discover you are spending too much each week/month on fast food, coffee or restaurants.

  • Heat
  • Electricity
  • Cable
  • Phone
  • Internet
  • Clothing
  • Child Care
  • Transportation expenses
  • Entertainment/Restaurants
  • Other Variable expenses

Other Expenses

There are always expenses in other areas that can pop up that can help pile up your debt.

If you are a home owner, then setting aside emergency money for possible unforeseen expenses is advised.

  • Home Insurance
  • Taxes – Property (for home owners)
  • Auto Insurance
  • Life Insurance
  • Taxes – Income
  • Expenses for Holidays and Birthdays

See our Setting up Your Budget from our budgeting basic series

http://davidsklar.com/blog/budget-basics-step-3-setting-budget/ for more detailed information and spreadsheet examples.

Tally up all of your monthly expenses. Add up all of your fixed, variable and other expenses. For some of the other expanses these may be a yearly/quarterly expense. In these cases, take an average.

Next you need to determine your average income per month (after tax income). This can be per person or per household depending on your current situation.

Tallying up all your expenses and sources of income into one spreadsheet can really be eye opening. If your expenses are consistently higher than your income per month, then your debt level will continue to rise. Look to areas where you could be overspending or areas that can be reduced.

Call the licensed professionals at David Sklar & Associates at 416-498-9200 for a Free, confidential consultation. During your consultation, we will review your financial situation, and discuss the options you have for getting out of debt and getting on with your life.

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?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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