Inflation & Interest Rates: How Will Your Finances Change?

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 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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