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 worked primarily with Christine, who was very friendly and outgoing. She was quick to help me, and explained everything I needed to know very well. She's quick to answer any questions I may have as well. The other members I spoke with were also very kind and jovial, and were happy to help me with anything they could. They made sure my proposal fit within my budget, and got everything going very quickly. I was happy to work with them, and would highly recommend their very friendly service!
Melissa McAllister
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Very processional and understanding of my situation. Thanks to all your team.
Luc Valade
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Jennifer Norton's exceptional assistance with my consumer proposal was life-changing. Her professionalism, expertise, and dedication were evident from the start. Jennifer's thorough explanations and attention to detail created a tailored proposal that set a clear path to financial freedom. She went above and beyond, advocating for my best interests and providing invaluable support. Thanks to Jennifer, I'm on track to a stress-free financial future. I wholeheartedly recommend her – she's not just a financial expert; she's a life-changer. Thank you, Jennifer!
Thomas
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They made a difficult situation, easy thank you.
Ray Barkley
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I had a great experience with Christine from David Sklar & associates. Very professional, and easy to get through. Thank you
fukinwith doug
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Great customer service and a smooth process to get your finances on track. Informative and thorough.
Adrian Downey
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From the moment I sat down in the office, I felt welcome and at ease. Grace Cuffaro was both friendly and highly informative. She is extremely knowledgeable and answered all of my questions in detail, making sure I understood before moving on. I was reassured throughout the process that I was making the right decision and that it was not uncommon nor anything to be ashamed of. I didn't expect my appointments to be such positive experiences, but that's exactly what they've been!
P Bains
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I was in a tough financial position and found myself searching for relief. I came across David Sklar & Associates page when doing my research on financial advice. The reviews were amazing, but I was concern because I didn’t know what to expect. I made the decision to set up a consultation and had the pleasure to meet with Jennifer Norton. Right from the beginning, she was attentive, knowledgeable, and pleasant to meet with. The experience was painless and very educational. Jennifer made sure I understood my choices, answered my questions, and concerns promptly, in person, over the phone and via email. I’ve been working with Jennifer for a couple months now and I am pleased that Jennifer is the manager handling my file. I would and have recommend Jennifer Norton, David Sklar & Associates to anyone in need of direction regarding finances.
A.L Thompson-Lawrence
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I had my first meeting with Jennifer, she was really understanding and extremely helpful, and got everything done in a timely manner.
Tamas Wint
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Jennifer Norton has been the most helpful throughout this truly embarrassing situation that I find myself in. She is informative, understanding, and there is absolutely no judgment. She has handled everything in a very professional and respectful manner and I am SO glad that I have them on my side. Definitely a huge weight off my shoulders.
Jody T
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