Dealing with Debt and Financial Problems in Toronto
Are you tired of struggling with debt payments?
It is possible to consolidate and cut your debt by up to 70%.
It’s easy to get into debt, especially in a high cost city like Toronto. Residents of the Greater Toronto Area face unique financial challenges when it comes to managing debt. The average price of a house in Toronto has tripled in just two decades. This has financial implications for both homeowners and renters. High housing prices mean large, and often high-risk mortgages. Landlords pass the costs to tenants in the form of high rents. All of this means that Toronto has a very high cost of living.
And living expenses are rising faster than income. When this happens you borrow, using debt to make ends meet. This might start as a few hundred dollars placed on a credit card, but eventually, it escalates to more expensive forms of debt like payday loans and high-interest financing loans. Eventually, you find yourself paying more interest every month with no expectation that you’ll ever pay off your principal balances.
You are not alone in facing such a heavy consumer debt load. Here is the debt profile of the average person we help in the Toronto area.
Average Unsecured Debt and Typical Savings for Our Toronto Clients
|City of Toronto||$56,564||$19,500||$37,064|
Debt Solutions in Toronto
Hoyes Michalos is one of Toronto’s largest Licensed Insolvency Trustee firms focused solely on helping individuals find a way out of debt.
Why Talk with a Toronto Licensed Insolvency Trustee?
Licensed Insolvency Trustees are the only debt professionals trained and regulated by the Canadian government. We are the most qualified to help you explore a full range of debt solutions and take charge of your debt. If you choose to file a bankruptcy or consumer proposal, this service can only be provided by a Licensed Insolvency Trustee. Your trustee will deal with your creditors for you and can stop collection calls and wage garnishments.
Bankruptcy is always the option of last resort however you do not lose everything if you do need to file bankruptcy. Many assets are exempt from seizure by your trustee including your personal belongings, household items and even a car with a low dollar value.
Our Toronto bankruptcy team will meet with you and review your financial income to see if bankruptcy really is the best solution. In many cases, bankruptcy can be avoided. If however, you need to file bankruptcy, we will be available to answer any questions you have along the way.
Consumer Proposal Services
Bankruptcy is not your only option though. Nine out of ten of our Toronto clients file a consumer proposal as an alternative to bankruptcy. If you do have assets you want to keep, we can guide you in learning how a consumer proposal works.
Consumer proposals in Toronto are a debt option that allows you to make a deal with your creditors to repay less than you owe. Your settlement is based on your income and what you own, but savings of as much as 70% of your debts are possible. If you choose to file a consumer proposal, your trustee will negotiate with your creditors to achieve a reasonable monthly payment that you can afford.
A consumer proposal can help you:
- Consolidate unsecured debt
- Make only one, single, lower monthly payment
- Eliminate interest
- Stop creditor actions
- Keep your assets
Debt Consolidation Options
As a Licensed Insolvency Trustee, Hoyes Michalos has the experience to help you review your debt consolidation options. There are so many Toronto consolidation programs available to people in the Greater Toronto Area, it’s hard to know where to start. We can help you compare the merits of a debt management plan, debt consolidation loan or consumer proposal.
For homeowners, you may be able to use the equity in your home to get out of debt. Even here, you have options. Hoyes Michalos can help you compare the risks and costs of taking on a second mortgage with using the equity in your home to make a repayment plan through a consumer proposal.
Credit Counselling Services
Hoyes Michalos provides Toronto credit counselling services both before and after you file. When you call us, we’ll help you create a plan that is affordable to you. During your free debt assessment, your trustee will ask you a few simple questions. Who do you owe money to? What do you own? What is your income and household budget? With this information, your Toronto trustee will review all possible debt solutions with you including, debt consolidation, bankruptcy, and a consumer proposal.
When you file a consumer proposal or bankruptcy you also receive 2 free credit counselling sessions. This is part of the bankruptcy and consumer proposal process and is designed to help you learn how to budget, manage money and how to rebuild your credit.
When working with Hoyes Michalos you are guaranteed respect, confidentiality, and expert financial advice. At Hoyes Michalos we believe you should always talk with a professional. For over 20 years we’ve focused solely on helping individuals find debt relief.
To reach us, call us at 1-866-747-0660 or contact any of the trustees in any one of our Greater Toronto Area locations below.