Nate and Shelley

Nate & Shelley's Story

Real People, Real Debt, Real Solutions

Credit Card Debt Spiral

Nate and Shelly (not their real names) were a pleasant Toronto couple raising two teenage children on a limited income. Although Shelly was sometimes able to supplement their income with a part-time job, it was still challenging for them to make ends meet.

Like many people living in Toronto, they got trapped in a debt spiral to sustain their lifestyle and ensure the bills got paid. They turned to a line of credit to pay off their credit cards. And when they ran their credit cards back up, they opened a second line of credit to pay their new balances. They then ran their credit cards back up a third time.

Nate and Shelley were falling further and further into debt, with less and less disposable income to cover their payments.

Seeking a way to escape their credit card and line of credit debt cycle, they sought help from David Sklar & Associates.

Credit Card Debt Spiral

How David Sklar & Associates were able to help Nate and Shelley reign in their debts

During their initial meeting, Richard Sklar, an Estate Administrator, reviewed their financial situation in detail. Shelly explained that she had to make several lengthy visits to her ailing mother in Saskatoon over the past few years, which was why they had used their credit cards so much. It was also why Shelly could not get a full-time job to help with the family’s income.

Nate and Shelley were renting, did not own a home, and their few possessions were exempt from bankruptcy.

At the time of their meeting, the Toronto couple was responsible for the following debts:

Richard Sklar, Licensed Insolvency Trustee

Richard Sklar

Licensed Insolvency Trustee

Lines of Credit$35,000
Credit Cards$32,000
Bank Overdraft$4,000
Total Unsecured Debts$71,000

Although bankruptcy was a real option, Nate and Shelly were adamant in their desire to pay back as much as they could to their creditors.

After discussing all of their options with Richard, they decided to file a consumer proposal, which would reduce their debt load and allow them to pay manageable monthly payments.

Here's how much Nate and Shelley were able to save by filing a consumer proposal

With guidance from Richard,

Nate and Shelley created a proposal for their creditors where they would repay $22,800 of their existing debts of $71,000. Once David Sklar & Associated submitted the proposal, the creditors happily accepted the terms.

Under the proposal, Nate and Shelley would pay $380 monthly for the next 60 months. Based on Nate’s monthly net income of $2,700 (Shelly did not have a job at the time of filing), $380 was a monthly amount they could afford. 

The couple would make these payments directly to David Sklar & Associates, who would, in turn, distribute the funds to their creditors.

As a result of filing the consumer proposal, Nate and Shelley will have eliminated over 68% of their unsecured debts.

We fully expect that Nate and Shelley will complete their consumer and honour all the agreement terms. In many ways, they epitomize the “honest but unfortunate” debtor that Canadian laws are in place to help.

To protect our client’s privacy, aspects of this case study have been altered.

Photo by Elina Fairytale from Pexels, Photo by Karolina Grabowska

debt calculator

Find out how much you can save with our Consumer Proposal Debt Calculator

Use the slider below to tell us how much you owe and we will show you how much you can save!

*This calculator simply provides an estimate of the total savings you could receive filing a consumer proposal. Actual results may vary as each financial situation is unique. Your actual payments will be based on your income, assets, and debts.

Do Not Include Mortgage or Car Loan Debt.

$10,000 $250,000

With a consumer proposal at 0% interest, you will only have to pay back:

$3,480/$58 per month

*This calculator is for demonstration purposes only. Your results may vary based on your unique financial situation.

David Sklar & Associates is here to support your financial recovery

Learn how we can help you find debt relief with a consumer proposal or personal bankruptcy. Our passionate and experienced team at David Sklar and Associates has helped thousands of individuals break free from crippling debt payments. Our experts can answer any questions about your debts and recommend a solution based on your unique needs and goals. 

Let us help you pave the way for a brighter financial future, starting with a free, no-obligation consultation

Kelly Silke
Kelly Silke
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Trina Powell is an excellent listener and completely non judgmental. She truly cares for her clients and goes out of her way to be available and to help even when that means she has to accommodate last minute life changes. She is incredibly smart and kind and takes the time needed to explain everything from start to finish. She is an incredible human being and only wants the absolute best for everyone she helps. The work she does is life changing and improving. I highly recommend her services and support to anyone else who is struggling with their debt loads to seek out her help. Trina will absolutely be there for you too and help you just as excellently as she did for me. I cannot say enough good things about her or the amazing work she does. Her patience, empathy, understanding, and dedication make her the absolute best. You should absolutely trust her with your life on the road to moving forward. Don’t be afraid you’re not alone and Trina will help you too.
Sheri Stevens
Sheri Stevens
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I am so grateful to Jackie Stanley with David Sklar & Associates. She has listened and worked with me to come to a reasonable solution. Jackie has provided so much information, walking me through everything. I couldn’t ask for a more patient, kind and understanding person to help me. I look forward to working with her through my time with David Sklar & Associates.
Bob Irvine
Bob Irvine
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Jackie Stanley is an extremely personable, friendly and professional representative with David Sklar & Associates. Her customer service skills are exemplary and her knowledge with regards to my situation and helping me with getting my life back on track was just amazing. She was very understanding of my issues, and took her time to make sure that I understood everything. At the end of my meeting with her I left feeling emotional but relieved to know now that my life can finally move forward. Jackie, you have been a great asset in my life and I will never forget your kindness. Mr. Sklar I would just like to say that you have a 5 Star representative in your associate Jackie Stanley. Respectfully, Bob
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After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
Christopher Rakobowchuk
Christopher Rakobowchuk
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Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services. Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.

Getting into debt is easy. Getting out is a different story.

But it's still possible!

Did you know there is a Canadian debt relief program federally regulated by the Canadian Government, designed to help citizens avoid claiming bankruptcy? This amazing program can only be administered by a Licensed Insolvency Trustee (LIT).

If you’re struggling to make your payments every month and creditors won’t stop calling, we can help.

What our clients are saying.

Based on 1045 reviews
Danny Gottshalk
the service was excellent, Grace Cuffaro and Serena Sklar was very helpful and knowledgeable.
Martin Obrien
Trina was Very pleasant and professional to deal with made the process absolutely easy no stress at all explained everything simplified it down so I could understand it would definitely recommend it
Jordan Clarke
This place is great! Grace answered all my questions, very welcoming and I never felt judged! So far everyone I have dealt with was super polite, thorough and treated me with respect! 10/10 recommend!
Praise_Hymn P
They are very accommodating and very respectful. They do very professional and make sure your worries are being addressed. Excellent job Samycha thanks for the help.
Arci Olvez
Very helpful with all the inquiries and satisfied with their service!. Great company to work work with.
Sharon Baltzer
Treated very well. They showed me a great deal of respect. Felt a load had been taken off my shoulders. Would highly recommend.
Ken Burgess
Your staff was all very helpful and kind. They did not make you feel like a lesser person. We are so happy we went to see you to get us out of debt.
Lawrence Wolfe
My experience working with Trina and then the rest of the team was great. They listened to all my concerns and addressed them.
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