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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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!
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18:45 05 Dec 21
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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.
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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.
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17:02 11 Nov 21
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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.
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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.
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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:)
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15:17 09 Sep 21
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