Inflation & Interest Rates: How Will Your Finances Change?

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Interest rates in Canada are set to continue as inflation creeps up.

In late August, the governor of the Bank of Canada, Stephen Poloz, said that he will continue to raise interest rates in order to stay ahead of the inflation curve. With inflation reaching 3% in Canada, there’s pressure for key interest rates to rise and keep inflation from growing out of control.

Keeping inflation under control is one way the Bank of Canada keeps the cost of living down for consumers, but rising interest rates can make your life more expensive as well, especially if you have debt.

When key interest rates rise, it can impact your mortgage, your credit card interest rates, and the interest rate you will have to pay on future car loans and lines of credit. For most Canadians, the impact on their mortgage will be the most deeply felt, especially homeowners who bought at low-interest rates and high prices in recent years. Rising interest rates threaten to eat up many Canadians’ disposable income and push many into insolvency.

What can a bankruptcy trustee, now known as a Licensed Insolvency Trustee, do about mortgages squeezing your budget? Bankruptcy trustees don’t deal with secured debt like mortgages and car loans. Banks can foreclose on houses and repossess vehicles if you stop making payments.

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But for many Canadian households, as interest rates rise, they have to choose between making mortgage payments and paying off credit card debt. At David Sklar & Associates, we can help you find the breathing room in your budget to keep up with more expensive mortgage payments.

When you’re already carrying multiple credit card balances, a rise in your mortgage payments can put you over the edge and make you insolvent. You can find out if you are insolvent, and therefore eligible for a consumer proposal or bankruptcy, by booking a consultation.

A bankruptcy trustee will look at your financial situation and suggest a way out of debt. You can book a free, no-obligation consultation at any David Sklar & Associates office in Toronto and the GTA.

From there, we will discuss your options, including bankruptcy and a consumer proposal. These are two tools that can provide debt relief for your unsecured debts, i.e., credit cards and bills. A bankruptcy trustee will explain the differences between consumer proposal and bankruptcy, and help you decide which one is right for you.

Choosing between bills to pay or struggling to find enough money at the end of the month to meet all your obligations is a sign that you’re under financial stress. A bankruptcy trustee will answer the question, what is a consumer proposal, and how a consumer proposal can reduce your credit card debt.

Beyond your mortgage, rising interest rates may also mean higher credit card interest rates. If your credit card company raises interest rates on you, you may be able to negotiate with them or find a better deal with another credit card provider. After years of low interest, the financial landscape in Canada is about to change. Don’t debt let your debt hold you back.

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 had a great experience with Jerry Janiec and his team at David Sklar and associates. Within a week I was already accepted and filed for bankruptcy and in a few months I will be debt free! It feels like a lot of stress is off my shoulders. Jerry and his team are very friendly, helped me along the way and was there to explain every detail of the process with me. He gave my his card and is just an email/call away if I need any help with paperwork and completing my duties. He is a very patient and kind professional and I am so glad I chose him and this company to help me fix my financial problems. If you need help with a consumer proposal or bankruptcy (like I did) I highly recommend Jerry Janiec and David Sklar and associates!
Lisa Gomez
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Very professional and caring. Cori, explain everything and listened to my situation. If I didn't understand, she will explain it again. I'm glad that I went to David Sklar and Associates for my financial difficulties.
Richard Hong
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Great experience with this company . Especially Jennifer N. communication was amazing and really helped out my situation. Highly recommended her and David S .
Jay Mil
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Everything went well. I will update in 5 years
Trisha C
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My experience with Cori was phenomenal. Cori took the time to explain the process thoroughly, listened to my concerns and reassured me. Cori has exceptional people skills and cares about the people she is helping. The experience throughout was professional, kind, warming and inviting.
Angie
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A huge thank you to Jackie S and to the David Sklar and Associates team. Steps made easy , Jackie S has been there during the entire process , whether it was through emails or phone calls . I felt acknowledged and respected . I’d recommend David Sklar and Associate at a heart beat !! Cheers , Dennis
Dennis Armstrong
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Very happy to talk with grace and she explained my options.Grace is very knowledgeable,friendly,and helpful. She made feel very comfortable,with her help I am on the road to be debt free. She relieved so much stress. I highly recommend them.
Kelley Roberts
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David Sklar & associates is the place to be if you’re looking for help on your debt consolidation. Kudos on their staff Miss Grace Cuffaro who were very patient guiding me on complying all required documents.
Nhie GU
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Reduced my stress and gave me a second life. Sincere heartfelt thanks to the team.
Selvaraj Dhanagopal
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I am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
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