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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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!
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20:18 16 Jun 22
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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!!
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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!
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