Posted On: January 18, 2019

There are many things you can do in Toronto for free or almost free. If you’re climbing out of a difficult debt situation – making lifestyle sacrifices is necessary. You need to tighten your budget and settle into a new lifestyle with a monthly budget that’s been drastically cut back. It’s just one of the things you have to do to get a good grip on your finances.

However, don’t forget to have fun along the way. You deserve to have some fun, especially on some days when it will be really rough, and you will be stressing out, and you’ll feel pretty much like a zombie. You’ll need to take a break, and you’ll benefit a lot if you take it easy once in a while.

I know you’re thinking that it’s going to be impossible to still have a life while you are focused on paying off debt. However, it’s not impossible. It can be done. You can definitely still have a fun and healthy lifestyle even when you need to tighten your budget. You just need to be smart with the resources you have.

Let’s start off with some of the things you can do in Toronto for free, or for cheap, to help you take your mind off your debt problems even just for a little while — and have some fun, enjoy life and simply live in the moment.

FOOD AND EATS

For many of us, life is food. We feel we are living well if we eat well. Luckily in Toronto, there are many places you can dine on delicious meals that cost $10 or less without having to sacrifice quality or taste.

Groupon

The best place to find great food at cheap prices is on the Toronto Food & Drink Groupon page.

Groupon is a popular money-saving website that features local discounts in over 150 cities. If You’ll find the latest food and drink deals in Toronto to have breakfast, dinner, lunch or to celebrate birthdays and other special occasions that offer great savings from 40% and up. New deals get added many times daily and weekly so keep checking back, so you don’t miss out.

ART AND MUSEUMS

These are some great places you can check out if you are a person who has a great love of art:

Bata Shoe Museum

If you love shoes but can’t afford to buy any yet, you can still stare open-mouthed in wonder and amazement at over 10,000 items of footwear in Toronto’s unusual and unique shoe museum. The four galleries housed within the four-storey structure regularly organizes exhibitions, so there are always some new shoes for you to see. On Thursdays from 5 – 8 PM, you only have to shell out $5 for admission.

Art Gallery of Ontario

Admission is free at the AGO on Wednesday nights from 6 to 9 PM. You can take a look at close to 95,000 pieces of art: everything such as contemporary art, prints and drawings, photography, and art collections from around the world. Make sure you don’t miss out on unique events that any art fan will enjoy.

MUSIC

Some of us need the sound of music to help us relax, so here are some fantastic places to enjoy.

Free Concert Series by the Canadian Opera Company, Richard Bradshaw Amphitheatre

For this season, the COC has organized a variety of worldwide performances for free until May 2019. However, you have to check out their website regularly for upcoming events in their 2019/2020 lineup as they hit their 1,000th concert. Free concerts are mostly on Tuesdays and Thursdays at noon, and at times on Wednesdays at noon or 5:30 PM. Admission is free, however, seating is limited, so plan your visit ahead and come early.

Canadian Music Festival

This is an annual event that happens every first week of May where you can get to listen to over 1,000 live bands and musicians from a wide range of genres held at numerous venues across downtown Toronto. Get ready to get your groove on with so much music and so much fun for very little cost!

SHOPPING

Kensington Market

This place is a charming, pleasantly old-world neighbourhood right next to Chinatown. You’ll find lots of unusual vintage or surplus clothing, shoes, jewelry, bags, and one-of-a-kind gifts and arty-crafty home accessories and creative artworks in many retro furniture shops. There are also plenty of coffee shops and restaurants to pick up a cup of good & cheap coffee or tea and affordable breakfast and lunch specials for take out. It’s so diverse you can spend a whole afternoon or evening just strolling around and window shopping.

GARDENS AND PARKS

Toronto has over 1,500 parks and gardens that are free all year round. You can walk the dog, stroll around, explore on a bicycle, picnic with the family, play with the kids, lounge in the grass or simply sit all day on the benches and people watch. No matter what you do, a visit to one of Toronto’s parks and gardens are a great way for you to get outside and have some fresh air.

Here are some you’ll want to visit soon:

Trinity Bellwoods Park

A beautiful oasis in the west end of Toronto that’s well-suited for you if you like traditional green spaces with lots of greenery and century-old trees. The park organizes lots of special events, such as art installations, plays, book fairs, drum circles, meditation clubs so you can meet lots of new friends there. And you don’t have to go far to eat and dine as there are also plenty of incredible and affordable places to eat and drink within and outside the park.

Allan Gardens Conservatory

If you are a fan of exotic plants and floral displays a visit to Allan Gardens Conservatory is a must. It’s a botanical haven of unusual flora, tropical plants, spiny cacti, and exotic palms from all over the world.

PASTIME FUN

Graffiti Alley is getting to be a really popular attraction in Toronto, so if you suffer from FOMO or the fear of missing out, it’s one of the things you can’t miss to experience. You can stroll around with friends or a significant other and admire wall after wall of fantastic street art and take lots and lots of selfies to post on your social media accounts. The murals can keep changing as artists regularly paint over old works and replace them with new creations, so there’s always something new to see and photograph the next time you visit. There’s also often something going on in nearby areas, such as outdoor ice skating in the winter and live music, outdoor movies and cultural festivals during the summer months.

Paying off debt does not mean you can’t have a life. There are tons of things you can do in Toronto for free or for cheap, whatever mood you’re in. All you really need to do is find the time to get to some of the city’s main attractions and enjoy life.

Posted On: December 18, 2018

If you use credit with good judgment and with a solid plan to pay it off, you stand a good chance of profiting from the funds you borrowed. It’s important to remember that when it comes to taking on debt, you should approach the decision carefully and only take on debts that will grow your financial worth and/or positively affect your life. The best way to know how to control debt — along with most things in our lives — is to look before you leap. Be sure to ask yourself if the credit is necessary, what will it involve, is there a better way to get what you want than by incurring this debt and how fast will you be able to get rid of it. For example, ask yourself:

• What is its purpose, i.e. the long-term goals and benefits you will achieve as a result of taking on the debt?
• How you will pay it back?
• And, where it fits within your cash-flow budget?

One way to ensure that taking on new debt won’t be an issue for you is to understand the difference between good debt and not-so-good debt.

Good debt generally has the following qualities:

• It is taken on for something that will likely not lose value over time
• It will leave us better off in the long-term and provide us with lasting and, with luck, ever-increasing benefits
• The debt will not have negative consequences on our present and near-future overall financial position
• It will help us manage our finances more effectively
• It will help leverage your wealth
• The debt is used in a responsible way, with details carefully thought out and with the long- term view in mind
• There is a clear and specific reason for taking out the debt
• There is a realistic plan for paying back the debt as quickly as possible
• The debt was obtained through the cheapest and most effective borrowing method available, with the most reasonable interest rate, term and charges

Not-so-good debt has the following features:

• It feels like free money
• It often provides some form of instant gratification
• It will not provide some increase in value to us over time
• It reduces your wealth or offers no opportunities to grow wealth
• It keeps growing, because of the interest rate and supplementary charges
• It seems like it will never be paid off
• It may have an unrealistic repayment plan

How to stay out of debt

The fact is that no matter how much our financial life may have jumped the rails, you always have the power to get it back on track, regain control and avoid debt situations like bankruptcy. You’ve also seen how much of a role our attitude plays in grasping that empowerment. Seeing the glass to be half-full rather than half-empty can make all the difference in the world. If you can manage your credit wisely, you can enjoy the many benefits it offers. As you know, it can be a very useful tool by helping you accomplish important life goals, boost your net worth over time and enhance your quality of life, just so long as you remain the one in charge.

The next logical question likely is: “What can I do to make sure that I do remain the one in control of my debt?”  Of course, the short flippant answer is: don’t borrow. But as we’ve already seen, there are times that taking on debt will be necessary. The majority of us may see abstention as too lofty a goal. It can be done, but very few of us will be in the envious financial position of having the money to satisfy all our needs, and our wants, without borrowing. The trick will be to manage it properly and not allow it to take control.

Consider sticking the following reminders to your fridge to help keep you on the straight and narrow in 2019:

1. Best way is to stay out of debt completely, don’t borrow full stop. But some are not avoidable:
   • Mortgages
   • Car loans
   • Student Loans
   • Impulse — clothing, food, entertainment
2. f you actually need to take on some debt, what is it that you are trying to accomplish?
   • Have a plan – this is the goal of how you’ll pay of the debt
   • Develop good habits and stick to positive financial routines
   • Most important, learn to manage your cash flow
   • Create a simple cash flow spreadsheet or table; this can also be done through money management software like Intuit Quicken or MS Money
   • Make tracking your money an automatic process; enter and update your transactions regularly
3. Remember, when it comes to tackling your debt:
   • Be honest with yourself about what went wrong
   • Make a decision to tackle the problem
   • Seek professional advice to understand your options; remember, you’re not alone, keep your pride in check
   • Accept the reality of the situation and stay positive
   • if it becomes too much for you to handle, never be afraid to consult with a debt expert or professional.

Posted On: December 14, 2018

The new year is around the corner, so have you given any thought to the potential financial hangover you may wake up to in early January? Perhaps you spent too much, even though you created a holiday budget. If you think you might have spent more than you planned, here are some helpful tips to get you back on track before the next big holiday.

Assess how you spend money

Are you an emotional spender who needs to spend all the time? Or are you a careless spender, who doesn’t know or care where your money goes? Perhaps you’re somewhere in the middle. Identifying your spending style and taking positive steps to make a change will put you on the right financial path in the coming year.

Watch where your money goes — Understanding your cash flow

Do you have a personal and/or family budget? If yes, then go through it very carefully. You may be able to find extra money by cutting expenses in less important categories. Calculating your monthly income and expenses — your cash flow — is relatively simple. Simply add up all your income from all sources and the amount of expenses you usually have each month. If you have properly listed all your expenses, including things that aren’t paid out on a monthly basis like car insurance premiums, utilities and other bills, then you’ll have a good idea if you have the money to take on another monthly payment.

Here’s an example of the lists you may have:

Monthly net income.

• Take-home pay
• Bonuses
• Pension
• Dividends
• Social security
• Child support and alimony
• Any other main sources of income in our household

Monthly debt expenses:

• Monthly mortgage or rent payment
• Monthly alimony or child support payments
• Student loan payments
• Car loan payments
• Credit card minimum monthly payments
• Monthly payments for personal loans or any co-signed loans
• Monthly payments for real estate taxes and for homeowner’s insurance (only if they are held in escrow)
• Income Tax Remittance if self-employed
• Note: Do not include monthly expenses for groceries, utilities, gas.

Next, divide your total debt payments by your total income and multiply by 100 to get a percentage result. This is your debt-to-income ratio. Now, you’ll have a comparative percentage to help you understand how much of your income is used up paying monthly debt payments. If your ratio is 35% or less, you’re managing your debt well. If your income turns out to be equal to or less than our monthly expenses, then you’d better postpone or cancel taking on new debt. If it’s between 36% to 49%, you’re managing your debt to an acceptable extent, but your finances may not be able to handle unforeseen expenses. If you’re looking to borrow money, lenders may ask us for additional security to make their final decision. If your ratio is 50% and above, you’re at a critical level; you simply have too much debt. If you fall within either of these last two ratio levels, you should seek professional advice before things go too far. Keep in mind that you are not alone as many Canadians carry debt at 50% to 80% of their monthly income. It’s only after they realize that they no longer can meet the payments, that they’ve borrowed too much.

Pay off the debt and start saving

You’ve done the math and maybe things don’t look too bad. You are practically convinced that you can do this. But if you get away from the numbers a bit and reflect on a few other aspects of your situation, you may reconsider taking on additional debt:

• The reasons for taking on the new debt — the good reasons and the not-so- good reasons;
• What the benefits will be from doing so;
• What effect will this new liability have on other members of your household;
• What other costs will arise from the deal, such as the cost of lost future opportunities because of the need to service this new debt;
• The psychological costs to both yourself and others that stem from the existence of the debt and payment burden it creates;
• And whatever other personal, perhaps non-financial effect all this will impose on us and our family.

Based on your answers, you may decide it’s better to use the cash flow wiggle room you identified in your budget and apply it to pay off your current debts and start a savings program. Remember that it’s possible to change bad financial habits. It’s just requires you to make a concerted effort to simplify your life. By changing your consumer mindset now, you’ll find that you’ve made yourself richer. One way to make the change is by making spending harder. For example:

• Set up a pre-authorized payment program every payday to force yourself to save and pay down your debt.
• Limit your ATM withdrawals and bank fees. Plan your spending and always use cash. You may want to consider leaving your debit card at home, too.
• Put your plan in place. The key to financial success is self-discipline. Keep your eye on your goal. It may hurt at first but after a while your program will feel very natural.

The message here is not to encourage anyone to go into additional debt, but rather to tread carefully if that’s the direction you’re headed and avoid debt situations like bankruptcy in Toronto. If you allow yourself to get too comfortable, you may very subtly, perhaps without realizing it, be giving yourself permission to keep piling it on, which will eventually prevent you from reaching your goal of living debt-free. Remember, going into debt is a choice. At the end of the day, the numbers show that a well-researched, unemotional and honest analysis of your financial situation will pay far greater and better dividends to you than all the fancy baubles that you buy.

Posted On: December 5, 2018

As we get closer to the holiday season, there is one thing we can all agree upon: the holidays stress us out. Whether we’re juggling an increased social calendar, rushing to finish work before the end of the year, or trying to grab that last-minute gift, we’re all feeling somewhat overwhelmed. Along with all this rushing around is a tendency to over spend. We know we probably shouldn’t, but we tend to shrug it off and think about the consequences later. But then the first credit card bill arrives in January and we’re hit with one of the most difficult kind of stresses to deal with: debt stress.

Debt stress has an overarching effect on our lives. It affects our credit score, our financial independence, career choices, well-being and standard of living. In October, Equifax Canada announced that consumer debt continues to rise; in fact it’s up 5.4% since last year. But, we have it in our power to avoid the pitfalls and handle debt properly to achieve positive and desirable results. To ensure we don’t let debt control us it’s important to remember the difference between good debt and not-so-good debt. For example, good debt should leave us better off in the long-term and provide us with lasting benefits. By contrast, not-so-good debt will not provide some increase in value to us over time and tends to reduce our wealth.

Also, another way to control our debt at this time of the year is to understand how much we currently owe. Then we should set a holiday spending budget to ensure we don’t continue to overextend ourselves financially.

Calculate how much cash and debt you currently have: On a spreadsheet or paper and pencil, list your assets (what you own) and your liabilities (what you owe). Now calculate your net worth by adding up your assets and then subtracting your liabilities. If your net worth is positive, you’re doing a great job of managing your money. If your net worth is negative — or “in the red” — it’s time to be honest with yourself and not take on any more debt this holiday season.

Make a list, pay in cash and stick to your plan: Consider this list a mini-budget. Itemize what you realistically think you’ll need over the holidays, like modest gifts, food, refreshments and decorations. Based on the calculation you did above to identify how much you can afford and put an affordable spending limit next to each category. Your goal is to stick to this plan. There are often great sales in November and December, so do your research to find the best bargains.

Enjoy the season: It is possible to have a great festive season without spending a lot of money. Besides, it’s the thought that counts, not the expensive price tag. It’s also possible to use credit with good judgment and with a solid plan to pay it off. Happy holidays!

Richard Killen, Licensed Insolvency Trustee in bankruptcy and author of the new eBook The Glass is Half Full which is now available to be downloaded for free on this page.

Posted On: July 6, 2018

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy with offices across Toronto answers the question.
I don’t know how many times I have been asked by somebody during the course of the free consultation we provide to consumers at the beginning. What do you think, should I go bankrupt?

My answer is always the same for people. Its not up to me to tell you to go bankrupt.
Bankruptcy is a personal decision. What might work for one person, might not work for another person. Although what you can get from a trustee is a good idea of what is going to happen if you do a bankruptcy opposed to a consumer proposal.

So to answer the question, should I go bankrupt? My answer is you need to decide that.

Posted On: July 3, 2018

In this video, Richard Killen, a Licensed Insolvency Trustee in Ontario with offices in Durham region (Pickering & Oshawa) talks about whether a person’s income tax debt can be included in a personal bankruptcy in Ontario.

Something that comes as a big surprise to a lot of people is when they find out an income tax debt, an ordinary income tax debt is something that is dischargeable in a bankruptcy or can be taken care of in a consumer proposal. The people of Durham or people from across the Greater Toronto Area ask me that question numerous times. It is not a strange thing as ordinary income tax debt is treated as a debt.

There is nothing special about the fact it is a debt owed to the government. A debt to the government is not anything special in a bankruptcy situation. Therefore, in a bankruptcy in Durham or anywhere in Ontario, a tax debt is dischargeable.

If you are behind on your taxes or are have other debt problems, consider talking to one of our trustees and debt experts. We can help you review all your options for debt relief.

Contact our Durham office us for a fresh start at (905) 420-6565

Posted On: June 30, 2018

In this video, Richard Killen, a Licensed Insolvency Trustee in Ontario with offices in Durham region (Pickering & Oshawa) talks about whether a person’s income tax debt can be included in a personal bankruptcy in Ontario.

Something that comes as a big surprise to a lot of people is when they find out an income tax debt, an ordinary income tax debt is something that is dischargeable in a bankruptcy or can be taken care of in a consumer proposal. The people of Durham or people from across the Greater Toronto Area ask me that question numerous times. It is not a strange thing as ordinary income tax debt is treated as a debt.

There is nothing special about the fact it is a debt owed to the government. A debt to the government is not anything special in a bankruptcy situation. Therefore, in a bankruptcy in Durham or anywhere in Ontario, a tax debt is dischargeable.

If you are behind on your taxes or are have other debt problems, consider talking to one of our trustees. We can help you review all your options for debt relief.

Contact our Durham office us for a fresh start at (905) 420-6565

Posted On: June 14, 2018

Sometimes I get asked by people who have recently filed personal bankruptcy whether or not they can cancel their personal bankruptcy in Ontario. Perhaps they have changed their mind and are wondering if their bankruptcy can be canceled?

The short answer is no, the bankruptcy cannot be canceled once it’s filed in the courts and the federal government has issued a number. It’s an official legal process and it’s not going to be canceled outright.

There are different ways to end a bankruptcy and there are ways that a personal bankruptcy in Ontario can be annulled and canceled in a legal way. However, you cannot just change your mind and decide “I want my bankruptcy canceled”. The legal system in place does not work that way.

One of the main reasons you sit down with a Licensed Insolvency Trustee is to go over all your options for debt relief. Usually, personal bankruptcy is the last option considered for debt relief, however, should bankruptcy option be chosen by the consumer, it was likely the best option at the time considering all factors.

Should your circumstances change after filing and you would like to reconsider your options, one of our Trustees would welcome an opportunity to discuss your options.

We can meet with you during business hours or book after hours appointments if that is more convenient for you. Contact us at (888) 545-5365.

Posted On: July 29, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto talks about, How long a Bankruptcy lasts.

There tends to be some general misunderstanding about how long a bankruptcy lasts. People hear things about this 7 years business, not being able to obtain credit, and things like that. But, essentially a bankruptcy is a legal process, it has a beginning and it has an end. It begins when you file for bankruptcy. It ends when you are discharged from the bankruptcy and therefore from your debts. So, how long will it last? Well, for the majority of people who have gone bankrupt, it’s their first and hopefully only bankruptcy, they are eligible for the discharge to take place in nine months. If they earn above a certain pre-set amount, an amount the Government sets for your monthly income, then if you earn more than that, bankruptcy might be extended by 12 months, from 9 to 21 months. If you have been bankrupt once before, you are going to be eligible to be discharged automatically in 24 months, not nine. And if you earn again, above that amount, then you will get the 12 months tacked onto that too, so you will end up being bankrupt for 36 months. So, generally speaking, a person goes bankrupt, they are bankrupt either 9 or 24, or 21 or 36 depending on the circumstances. Now, there are other factors that come into play, that could extend the bankruptcy, it would result in a person having to go to court to get their discharge and all that. Now, those are the kinds of things a Trustee needs to explain to you. And there are so many different variables.

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.

Posted On: July 7, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Ontario talks about if your job is affected by a bankruptcy.

Generally speaking, a person’s employment is not affected by a bankruptcy and not affected negatively by a bankruptcy. In fact, in may be affected positively by a bankruptcy. This is because you might be able to focus a lot more on your job if you don’t have to worry about your debts. However, in terms of any legal effects of a bankruptcy or proposal, there are some professions where it is effected, chartered accountants, for instance, lawyers, people who operate trust accounts like real estate brokers, things like that. There would be some negative affect of going bankrupt for people in those positions. But, for the vast majority of us, nope, the main effect is often positive. So, to answer the question, don’t be afraid of your job being affected negatively by either a bankruptcy or consumer proposal.

If you have debt problems and are concerned about how it may affect your job, I encourage you to call our office and talk to a trustee.