Articles & Insights – Spergel https://www.spergel.ca Licensed Insolvency Trustees Fri, 24 Apr 2026 15:30:38 +0000 en-CA hourly 1 https://wordpress.org/?v=6.9.4 https://www.spergel.ca/wp-content/uploads/2025/07/Spergel_Favicon.webp Articles & Insights – Spergel https://www.spergel.ca 32 32 Is Spergel legit? What you need to know before choosing a debt help company https://www.spergel.ca/learning-centre/is-spergel-legit/ Fri, 24 Apr 2026 15:03:00 +0000 https://www.spergel.ca/?p=17187

Spergel is a Licensed Insolvency Trustee firm in Canada, regulated by the federal government.

This means that Spergel is legally authorized to help Canadians reduce or eliminate debt through formal solutions like consumer proposals and bankruptcies – and is required to follow strict federal rules designed to protect you. If you’re asking this question, you’re not alone. When it comes to your finances, taking time to check who you can trust is not only normal – it’s the right thing to do.

Why people ask “Is Spergel legit?”

Searching for phrases like “is this company legit” is often part of making a careful, informed decision.

That’s especially true in the debt space, where:

  • Some companies charge high fees without delivering real solutions
  • Others are not licensed or regulated
  • The process can feel overwhelming or unfamiliar

Being cautious doesn’t mean something is wrong. It simply means you’re protecting yourself.

What makes Spergel a legitimate debt help provider?

Spergel is a Licensed Insolvency Trustee (LIT) firm.

Licensed Insolvency Trustees are the only professionals in Canada legally authorised to administer consumer proposals and bankruptcies.

Spergel is regulated by the Office of the Superintendent of Bankruptcy Canada (OSB), which oversees all insolvency proceedings in the country.

This means:

  • We are licensed and monitored by the federal government of Canada
  • We must follow strict legal and ethical standards
  • We are required to act in your best interest
  • Our fees are regulated and built into formal programs

For more than 35 years, Spergel has helped over 100,000 Canadians navigate debt safely, with clear, structured solutions designed to give people a fresh financial start.

Expert support you can trust

At Spergel, you’ll be supported by experienced Licensed Insolvency Trustees who are recognised leaders in their field.

“Our role is to provide clear, honest advice so people can move forward with confidence.”
 — Alan Spergel, Licensed Insolvency Trustee

Learn more about our team and their experience.

Licensed Insolvency Trustee vs debt consultant: what’s the difference?

Not all debt help services are the same – and this is where many people get caught out.

Licensed Insolvency Trustee (LIT)Unlicensed debt consultant
Government regulatedNot government regulated
Legally authorised to reduce or eliminate debtCannot legally file insolvency solutions
Can file consumer proposals and bankruptciesCannot file formal debt solutions
Fees are structured and controlledMay charge high upfront fees

If a company isn’t a Licensed Insolvency Trustee, they cannot legally provide the solutions many people are actually looking for.

How to tell if a debt company is legit

Before working with any debt help provider, it’s important to ask the right questions.

Look for:

  • Are they a Licensed Insolvency Trustee?
  • Are they regulated by the Canadian government?
    • Are fees clearly explained? A legitimate provider will always be transparent about how fees work. With a Licensed Insolvency Trustee, fees are regulated by the Canadian government and built into formal solutions like consumer proposals – meaning no large upfront costs and no hidden charges. If anything feels unclear – especially around fees – it’s always worth asking for a full explanation before moving forward.
  • Do they offer a free consultation? 

Watch out for:

  • Pressure to sign quickly
  • Large upfront fees
  • Vague or unclear explanations
  • Claims that sound too good to be true

 

A legitimate provider will always:

  • Be transparent
  • Take time to explain your options
  • Give you space to make the right decision

What real clients say about Spergel

Spergel has helped thousands of Canadians navigate debt with confidence – and that’s reflected in the feedback we receive every day.

  • 4,000+ reviews across platforms including Google and Trustpilot
  • Real client success stories from people across Canada
  • A long track record of helping individuals and families regain financial stability

 

“I would like to express my sincere thanks to the Spergel team for their excellent service, professionalism, and strong ethical standards throughout the process.”

Read real client stories and experiences.

What you can expect from Spergel

At Spergel, the approach is simple:

  • No judgment
  • No pressure
  • Clear, honest advice

We take the time to understand your situation and walk you through your options so you can make the right decision for you.

Still unsure? That’s completely okay

You don’t need to have all the answers before reaching out.

Spergel offers a free, confidential consultation where you can:

  • Ask questions
  • Understand your options
  • Get clarity without obligation

You’re in control the entire time.

Book your free consultation today

FAQs

No. Spergel is a private firm, but it is licensed and regulated by the federal government.

Yes, we’re proudly Canadian owned and operated.

Yes – these fees are regulated by the Canadian government and built into all formal debt solutions, such as consumer proposals.

This means:

  • There are no hidden upfront charges
  • Fees are standardized and controlled by law
  • Payments are included in one affordable monthly amount

 

You’ll always know exactly what to expect before making any decision.

Yes, insolvency solutions can impact your credit score. If, however, you’re already struggling with debt, your credit may already be affected. Working with a Licensed Insolvency Trustee can provide a structured path to reduce your debt, stop further damage, and begin rebuilding your financial future.

Yes – consumer proposals are a legal, government-regulated process designed to help Canadians reduce debt and avoid bankruptcy where possible.

]]> Why are groceries so expensive in Canada? (2026 update) https://www.spergel.ca/learning-centre/why-are-groceries-so-expensive/ Thu, 16 Apr 2026 17:02:32 +0000 https://www.spergel.ca/learning-centre/why-are-groceries-so-expensive/

Grocery prices in Canada are high due to inflation, supply chain costs, climate impacts, and limited competition – all of which are pushing food prices higher across the country. Canadians are continuing to face rising grocery costs in 2026, with food prices increasing faster than many other everyday expenses.

According to Canada’s Food Price Report, a typical family of four now spends over $17,500 per year on groceries – an increase of nearly $1,000 compared to the previous year.

For many households, this is making it harder to afford basic essentials – and in some cases, forcing people to rely on credit or cut back on other necessities.

Quick answer: why groceries are so expensive in Canada

Grocery prices in Canada are high due to a combination of:

  • Inflation driving up costs across the supply chain
  • Ongoing supply chain disruptions
  • Climate-related impacts on food production
  • A weaker Canadian dollar increasing import costs
  • Limited competition among major grocery retailers

These factors together are pushing food prices higher – and keeping them elevated.

Inflation and food prices in Canada

One of the biggest drivers of high grocery prices in Canada is inflation.

According to Statistics Canada, food prices have increased at a faster rate than overall inflation in recent years – particularly for essentials like:

  • Meat
  • Dairy
  • Fresh produce

Inflation affects every stage of the food system, from farming and processing to transportation and retail – ultimately increasing the price consumers pay at checkout.

Supply chain disruptions and transportation costs

Global supply chain disruptions continue to impact grocery prices.

While conditions have improved since COVID-19, challenges remain:

  • Higher fuel and shipping costs
  • Labour shortages in logistics and agriculture
  • Delays in importing goods

Because Canada imports a large portion of its food – especially fresh produce – these disruptions directly increase grocery costs.

Climate and agricultural challenges

Extreme weather is another major factor driving food prices.

Events such as droughts, floods, and wildfires have:

  • Reduced crop yields
  • Disrupted livestock production
  • Increased farming costs

At the same time, rising costs for fertilizer, animal feed, and fuel are putting additional pressure on producers – costs that are ultimately passed on to consumers.

Weak Canadian dollar and import reliance

Canada relies heavily on imported food, particularly fruits and vegetables.

When the Canadian dollar weakens, it becomes more expensive to import goods – increasing grocery prices nationwide.

Even domestically produced food can be affected, as many inputs (like equipment and feed) are imported.

Lack of competition in Canada’s grocery sector

Canada’s grocery industry is highly concentrated.

A small number of major players – including Loblaw, Sobeys (Empire), and Metro – control a large share of the market.

Limited competition can:

  • Reduce pricing pressure
  • Allow higher profit margins
  • Limit consumer choice

This has led to increased scrutiny from regulators and growing frustration among Canadians.

How rising grocery costs are affecting Canadians

Rising grocery costs are putting increasing pressure on household budgets across Canada.

Insights from Spergel’s upcoming 2026 version of our Debt Load Study highlight just how significant this issue has become. In the survey, groceries were the most common essential expense respondents reported using credit to cover – cited by around 60% of respondents, ahead of costs like rent, utilities, and transportation.

While this data reflects regional findings, it points to a broader national trend: for many Canadians, food is no longer a flexible expense – it’s a financial pressure point.

Across the country, people are:

  • Cutting back on food quality or quantity
  • Delaying other essential expenses
  • Relying on credit to cover basic needs
  • Turning to food banks for support

Real experiences from Canadians in the study highlight the human impact behind the data:

“Not being able to get the groceries needed.”

“Basic necessities of life, housing and groceries for example, aren’t met and people suffer the consequences in their physical and mental health.”

These insights reinforce what we’re seeing more broadly: grocery inflation isn’t just a cost issue – it’s affecting people’s wellbeing, stability, and ability to get ahead financially.

Food Banks Canada reports record demand, highlighting how widespread the issue has become.

For those already managing debt, rising grocery costs can quickly push budgets beyond breaking point – turning a manageable situation into something much harder to control.

What you can do to reduce grocery costs

While prices remain high, there are ways to manage your spending:

  • Plan meals and shop with a list
  • Use apps like Flipp or Checkout 51
  • Buy store brands or bulk items
  • Reduce food waste
  • Choose local or seasonal products where possible

Even small changes can help offset rising costs over time.

Struggling to afford groceries?

If rising grocery bills are forcing you to rely on credit or fall behind on other expenses, it may be time to explore your options.

Spergel’s Licensed Insolvency Trustees can help you:

Book a free consultation today and take the first step toward financial relief.

FAQs: Grocery costs in Canada

What is the average grocery bill in Canada?

A family of four spends approximately $17,500+ per year on groceries, according to Canada’s Food Price Report.

Why is food more expensive in Canada than the US?

Food costs in Canada are often higher due to:

  • Smaller market size
  • Higher transportation costs
  • Weaker competition
  • Currency differences

Will grocery prices go down in Canada?

Prices may stabilise, but significant decreases are unlikely in the short term due to ongoing structural challenges like supply chains and climate impacts.

What to read next

]]> The cost of living in British Columbia (2026): monthly expenses, cities, and income needed https://www.spergel.ca/learning-centre/the-cost-of-living-in-bc/ Mon, 13 Apr 2026 13:48:59 +0000 https://www.spergel.ca/learning-centre/the-cost-of-living-in-bc/

Living in British Columbia offers stunning scenery and a high quality of life – but it also comes with some of the highest living costs in Canada.

In 2026, rising housing prices, grocery bills, and transportation costs are putting increasing pressure on household budgets across the province.

Whether you live in Vancouver, Victoria, Kelowna, or a smaller community, understanding the true cost of living in BC – and how it varies by city – is essential for staying financially secure. In this guide, we break down average monthly expenses, living wage benchmarks, and what it really costs to live in British Columbia in 2026.

Quick answer: cost of living in BC (2026)

Household type Monthly cost (2026) Annual income needed
Single adult $3,500 – $4,200 $50,000 – $58,000
Couple $5,700 – $6,800 $80,000 – $95,000
Family of four $7,400 – $8,800 $95,000 – $115,000

Estimates based on data from Statistics Canada, CMHC, and cost-of-living aggregators such as Numbeo (2025-2026). Actual costs vary by location and lifestyle.

Struggling to keep up with rising costs? Explore your debt relief options.

What is the average cost of living in BC in 2026?

The cost of living refers to the total amount needed to cover essential expenses such as housing, food, transportation, utilities, and healthcare.

In British Columbia, average monthly costs in 2026 range from $3,500 to over $8,800, depending on household size and location. Costs tend to be highest in urban centres like Vancouver and Victoria.

Is British Columbia expensive to live in?

Yes – BC is consistently ranked among the most expensive provinces in Canada.

Compared to other provinces:

  • Housing costs are among the highest in the country
  • Fuel and transportation costs are above the national average
  • Groceries and utilities are more expensive than in many regions
  • Provincial sales tax (7% PST + 5% GST) adds to everyday spending

Despite this, BC continues to attract residents due to its job opportunities, healthcare access, and lifestyle appeal.

What are the biggest living expenses in BC?

The cost of living in BC is driven by a handful of major expenses – with housing by far the largest, followed by groceries, transportation, and utilities.

Expense category Monthly cost (2026)
Housing $2,000 – $3,200+
Groceries $500 – $600
Transportation $200 – $700
Utilities & internet $300 – $450
Insurance & healthcare $75 – $200

Ranges based on a combination of national datasets and regional cost variations in BC.

Housing costs in BC

Housing continues to be the largest expense for most British Columbians.

  • Average rent (1-bed, Vancouver): ~$2,300–$2,600/month (source: Rentals.ca)
  • Average rent (Victoria): ~$2,100–$2,300/month (source: Zumper)
  • Average home price (BC): ~$940,000 (source: WOWA)

Even in smaller cities, affordability remains a challenge – particularly for first-time buyers.

Grocery costs in BC

Food prices continue to rise in 2026.

  • Monthly groceries (single adult): $500 – $600 (source: Canada Food Price Report)
  • Family of four: ~$1,200 – $1,400/month
  • Food inflation remains elevated year-over-year

Families and those in remote areas often face higher costs due to transport and access.

Transportation costs

  • Gas: ~$1.80/litre (average) (source: CBC)
  • Car insurance: ~$1,900–$2,000/year (source: Rates.ca)
  • Vancouver transit pass: ~$201/month (source: TransLink)

Living outside major cities often means relying on a vehicle – increasing monthly costs.

Utilities and internet

Monthly average: $300 – $450 (source: MovingWaldo)

While BC Hydro rates are relatively stable, total utility costs can still add up – particularly during colder months.

Healthcare and insurance

While MSP premiums are no longer required in BC, many residents still pay for:

  • Dental care
  • Prescriptions
  • Mental health services

Private insurance can add $75–$200/month, depending on coverage.

Cost of living in major BC cities (2026)

City Rent (1-bed) Overall affordability Notes
Vancouver ~$2,500+ Low Highest costs
Victoria ~$2,200 Moderate High demand
Kelowna ~$1,800 Moderate Growing city
Kamloops ~$1,600 Moderate Smaller market
Northern BC ~$1,200–$1,600 Mixed Lower rent, higher groceries

Vancouver

The most expensive city in BC, driven by housing demand and strong job opportunities.

Victoria

High demand and limited housing supply keep costs elevated.

Kelowna & Kamloops

More affordable than coastal cities, but rising quickly.

Northern BC

Lower housing costs, but higher food and transportation expenses.

What is the living wage in BC in 2026?

City Living wage
Metro Vancouver ~$27/hour
Victoria ~$26–$27/hour
Kamloops ~$23–$24/hour

Living wage figures are based on calculations from regional living wage initiatives and reflect the income needed to cover basic expenses.

A single adult typically needs $50,000+ per year, while families often require $95,000+, depending on location.

Why the cost of living in BC is pushing people into debt

According to Statistics Canada, Canadian households owe approximately $1.77 in credit market debt for every $1 of disposable income, while the household debt service ratio remains elevated at around 14–15%.

With essential costs continuing to rise, many households are increasingly relying on credit to manage everyday expenses such as housing and groceries.

Recent findings from Spergel’s 2026 Debt Load & Psychological Wellbeing Study (British Columbia) highlight just how widespread this pressure has become:

  • Over 70% of British Columbians say rising grocery costs have increased their reliance on credit.
  • 85%+ report that housing costs have made it harder to stay current on bills or debt.
  • The increase in the cost of living is the most common reason people are going deeper into debt.
  • A significant proportion of British Columbians report using credit to cover everyday living expenses.
  • Many say their income is not keeping up with the rising cost of living, falling behind on payments, including credit cards, rent, and utilities.
  • Financial stress is now closely linked to mental health challenges, including anxiety and sleep disruption.

Financial pressure is also taking a toll beyond money:

  • Over 50% report feeling extremely stressed by their current debt or financial situation.
  • Almost 70% say their mental health has suffered as a result of debt or financial strain.

As a result, at Spergel we’re seeing more British Columbians struggling with:

Signs the cost of living may be becoming unmanageable

For many people, financial pressure builds gradually. These are some of the most common warning signs:

  • Only making minimum payments
  • Using credit for groceries or everyday essentials
  • Falling behind on rent, utilities, or bills
  • Watching balances stay the same despite making payments

Beyond finances, many British Columbians report that rising living costs and debt are contributing to stress, anxiety, and sleep disruption.

Many people delay getting help because they feel embarrassed, think they can manage on their own, or believe their situation isn’t “bad enough” yet.

“All my income goes to debt and bills, leaving almost nothing for basic living.”

If this sounds familiar, you’re not alone – and there are options available to help you regain control.

How to reduce your cost of living in BC

  • Track your spending for one full week
  • Use grocery apps like Flipp and Checkout 51
  • Review subscriptions and recurring bills
  • Compare insurance options annually
  • Apply for BC benefits and rebates where eligible

Download Spergel’s FREE Budget Tracker to get started.

Struggling with debt?

If rising costs are forcing you to rely on credit, it may be time to explore your options.

Spergel’s Licensed Insolvency Trustees can help you understand:

Speak to a Licensed Insolvency Trustee in BC today.
Free consultation. No judgment. Real solutions.

FAQs: cost of living in BC

What income do you need to live in BC?

A single adult typically needs $50,000+, while families often require $95,000+ depending on location.

What is the biggest expense in BC?

Housing is the largest cost, followed by groceries and transportation.

Is BC more expensive than Ontario?

BC is generally more expensive for housing and fuel, while other costs are comparable.

Are smaller cities in BC more affordable?

Yes – cities like Kamloops and Prince George offer lower housing costs than Vancouver or Victoria.

Get support today

The cost of living in BC in 2026 is putting real pressure on households – but you don’t have to manage it alone.

Spergel has Licensed Insolvency Trustees across British Columbia who can help you take control of your finances and explore your options.

Book your free consultation today.

What to read next

]]> The cost of living in Ontario in 2026: monthly expenses, cities, and salary needed https://www.spergel.ca/learning-centre/the-cost-of-living-in-ontario/ Wed, 25 Mar 2026 13:47:22 +0000 https://www.spergel.ca/learning-centre/the-cost-of-living-in-ontario/

Quick answer: Cost of living in Ontario (2026)

  • Single adult: $3,300 – $4,000/month
  • Couple: $5,400 – $6,500/month
  • Family of four: $6,800 – $8,200/month
  • Biggest expense: Housing
  • Most affordable regions: Northern Ontario, Windsor, smaller cities

Costs vary significantly depending on where you live, your lifestyle, and whether you rent or own.

Estimates based on data from Statistics Canada, CMHC, and cost-of-living aggregators such as Numbeo (2025–2026). Actual costs vary by city, lifestyle, and housing situation.

What is the average cost of living in Ontario per month?

The cost of living refers to the total amount needed to cover essential expenses such as housing, food, transportation, utilities, and healthcare.

In Ontario, average monthly costs in 2026 are estimated at:

Household typeMonthly cost (2026)
Single adult$3,300 – $4,000
Couple$5,400 – $6,500
Family of four$6,800 – $8,200

These figures are based on recent data from Statistics Canada, CMHC, and consumer cost tracking platforms, and reflect ongoing inflation in key categories like food and housing.

Is Ontario expensive to live in compared to other provinces?

Yes – Ontario remains one of the most expensive provinces in Canada.

Compared to other regions:

  • Housing costs are significantly higher than Alberta and the Maritimes
  • HST (13%) increases everyday spending
  • Insurance and electricity are among the highest in Canada

However, Ontario still offers:

  • Strong job markets (especially in Toronto and Ottawa)
  • Access to healthcare and infrastructure
  • Higher average wages in many sectors

What are the biggest living expenses in Ontario?

The cost of living in Ontario is made up of several key expenses, with housing, groceries, and transportation accounting for the largest share of monthly spending. The table below gives a snapshot of average monthly costs in 2026, before we break each category down in more detail.

Expense categoryMonthly cost (2026)
Housing$1,800 – $2,800+
Groceries$500 – $600
Transportation$150 – $600
Utilities & internet$320 – $480
Insurance & healthcare$75 – $200

Housing costs in Ontario (2026)

Housing continues to be the largest expense for most Ontarians.

  • Average rent (1-bed, Toronto): ~$2,500/month (source: Rentals.ca)
  • Average rent (Ottawa): ~$1,950/month (source: Zumper)
  • Average home price (Ontario): ~$890,000 (CREA, March 2026)

Even in smaller cities, affordability remains a challenge – particularly for first-time buyers.

Grocery costs in Ontario

Food prices continue to rise in 2026.

  • Monthly groceries (single adult): $500 – $600
  • Food inflation remains elevated year-over-year

Families and those in remote areas often face even higher costs due to transport and access.

Transportation costs

Living outside major cities often means relying on a vehicle – increasing monthly costs.

Utilities and internet

Ontario continues to have some of the highest electricity costs in Canada, especially during winter months.

Healthcare and insurance

While OHIP covers essential services, many Ontarians still pay for:

  • Dental care
  • Prescriptions
  • Mental health services

Private insurance can add $75–$200/month.

Cost of living in major Ontario cities (2026)

Cost of living in Toronto

  • Highest housing costs in the province
  • Strong salaries but high competition
  • Best transit access

Overall: Least affordable

Cost of living in Ottawa

  • Slightly lower housing costs than Toronto
  • Stable government job market

Overall: Moderate affordability

Cost of living in Hamilton

  • More affordable housing than Toronto
  • Good commuter access

Overall: Moderate

Cost of living in Northern Ontario (Sudbury, Thunder Bay)

  • Lower housing costs
  • Higher groceries and utilities
  • Limited transit

Overall: Mixed affordability

What is the living wage in Ontario in 2026?

Living wage estimates vary by region:

  • Toronto: ~$25–$26/hour
  • Ottawa: ~$22–$23/hour
  • Windsor: ~$18–$19/hour

A single adult typically needs $48,000–$55,000/year to cover basic expenses, while families often require $85,000+ depending on location.

What are the cheapest places to live in Ontario?

If affordability is your priority, consider:

  • Windsor
  • London
  • Kingston
  • Sudbury
  • Thunder Bay

These areas tend to offer lower housing costs, though trade-offs may include fewer job opportunities or higher transportation costs.

Why the cost of living is pushing Ontarians into debt

For many households, rising costs aren’t just a budgeting issue – they’re leading to increased reliance on credit.

Recent data shows:

  • Canadians owe ~$1.74 for every $1 of disposable income
  • Debt service ratios remain elevated
  • More households are using credit to cover essentials

At Spergel, we’re seeing more Ontarians struggling with:

If this sounds familiar, you’re not alone – and there are options available.

How to reduce your cost of living in Ontario

Here are practical ways to regain control:

  • Track your spending for one full week using our free Budget Tracker
  • Use tools like Flipp or Checkout 51 for groceries, and learn how to coupon
  • Review subscriptions and recurring bills
  • Compare insurance and utility providers annually
  • Check eligibility for benefits (e.g. Trillium Benefit, OESP)

Struggling with debt due to rising costs?

If the cost of living is forcing you to rely on credit, it may be time to explore your options.

Spergel’s Licensed Insolvency Trustees can help you understand:

  • Consumer proposals – reduce debt by up to 80% with one payment
  • Debt consolidation – simplify payments if your credit is still strong
  • Bankruptcy – a legal reset when no other options work

Speak to a Licensed Insolvency Trustee in Ontario today. Free consultation. No judgment. Real solutions.

What to read next

FAQs

 A single adult typically needs $48,000–$55,000/year, while families often need $85,000+ depending on location

 Housing is the largest cost, followed by groceries and utilities.

 Ontario is one of the most expensive provinces, but affordability varies widely by city and lifestyle.

 Yes – cities like Windsor, Kingston, and Sudbury offer significantly lower housing costs

]]> Why you should never pay a collection agency https://www.spergel.ca/learning-centre/why-you-should-never-pay-a-collection-agency/ Fri, 20 Mar 2026 13:46:11 +0000 https://www.spergel.ca/learning-centre/why-you-should-never-pay-a-collection-agency/

Collection agencies are hired to recover unpaid debts. They may contact you through phone calls, letters, emails, or other methods in an attempt to collect payment.

When this happens, many people’s first instinct is to pay the collection agency immediately just to stop the calls. Paying a collection agency, however, is not always the best move – and in some situations it can actually make your financial situation worse. Before making a payment, it’s important to understand how collections work in Canada and what your options are.

How do collections affect your credit report in Canada?

By the time a debt is sent to collections, the damage to your credit score has usually already occurred.

Late or missed payments are reported to Canada’s two main credit bureaus:

  • Equifax
  • TransUnion

These missed payments can lower your credit score and remain on your credit report for several years.

Once an account is sent to collections:

  • a collection account appears on your credit report
  • the negative payment history remains
  • your credit score may drop further

Collection accounts can make it harder to:

  • qualify for loans
  • obtain a mortgage
  • rent an apartment
  • finance a vehicle

This damage happens whether you pay the collection agency or not.

Do collections disappear after 6 years in Canada?

In most cases, a collection account will remain on your credit report for six years from the date of last activity or last payment. After this period, the collection account typically drops off your credit report automatically.

However, there are two important things to understand:

  • The debt itself may still legally exist even after it disappears from your credit report.
  • Making a payment may reset the last activity date, which can extend how long the collection remains on your credit report.

Because of this, many people choose to review their situation carefully before making a payment to a collection agency.

Why paying a collection agency doesn’t always help

Many people believe paying a collection agency will immediately improve their credit score.

In reality, this is usually not the case.

Even if you pay the debt in full:

  • the collection entry may remain on your credit report
  • the record of missed payments still exists
  • the damage to your credit score may remain for years

In some cases, making a payment can even extend how long the collection account appears on your credit report.

This is one of the main reasons why it’s important to fully understand your situation before making a payment.

Paying a collection agency can restart the statute of limitations

Another important factor to understand is the statute of limitations on debt. In many Canadian provinces, creditors only have a limited amount of time to pursue legal action for unsecured debts.

In Ontario, for example, the limitation period is typically two years from the last payment or acknowledgment of the debt. If you make a payment to the collection agency, that limitation period may restart.

This means the creditor could once again have the legal right to pursue collection through the courts.

What happens if you don’t pay a collection agency?

If you choose not to pay a collection agency, several things may happen depending on the debt and your situation.

Continued collection calls

Collection agencies may continue calling or sending letters in an attempt to collect the debt.

Possible legal action

For larger debts, creditors may pursue legal action that could lead to:

For smaller debts, however, legal action is often unlikely due to the cost involved.

The debt may become legally unenforceable

If the statute of limitations expires, creditors may still attempt to collect the debt, but they may no longer be able to successfully sue you.

Because these rules vary by province, it’s important to confirm the timeline where you live.

When it might make sense not to pay a collection agency

There are situations where paying a collection agency may not be the best option.

For example:

  • the debt is very old
  • the statute of limitations has expired
  • the collection agency cannot prove the debt belongs to you
  • you plan to settle the debt for less
  • you have no income or assets creditors could collect

Before ignoring collection calls, it is important to confirm your legal situation with a professional like a Licensed Insolvency Trustee.

When paying the debt might make sense

There are also cases where resolving the debt could be the best option.

For example:

  • you want to avoid possible legal action
  • you have the financial ability to settle the debt
  • you want to resolve the issue quickly
  • you are preparing to apply for a mortgage or financing

In some cases, it may be possible to negotiate a settlement for less than the full balance owed.

Alternatives to paying a collection agency

If you cannot afford to repay your debts, there are other options that may help resolve collection issues.

Negotiating a settlement

You may be able to negotiate a reduced lump-sum payment.

Debt management plan

A credit counsellor can help arrange structured payments over time.

Consumer proposal

A consumer proposal is a legal process that can:

  • reduce unsecured debts by up to 80%
  • stop collection calls
  • stop wage garnishments
  • consolidate debts into one monthly payment

Once a consumer proposal is filed, a stay of proceedings legally stops creditors and collection agencies from contacting you.

Bankruptcy

Bankruptcy may eliminate most unsecured debts and immediately stop collection activity.

What should you do if a collection agency contacts you?

If a collection agency reaches out to you, consider taking these steps before making any payments:

  1. Confirm the debt actually belongs to you
  2. Request written proof of the debt
  3. Check the date of last payment
  4. Determine whether the statute of limitations has expired
  5. Speak with a Licensed Insolvency Trustee about your options

Making a quick payment without understanding the situation can sometimes create bigger problems later.

Struggling with collection calls?

Collection calls can be stressful, especially if you’re unsure what your rights are or what options you have.

Spergel’s Licensed Insolvency Trustees can review your situation and help you understand whether a settlement, consumer proposal, or another debt solution may be the best path forward.

Consultations are free, confidential, and judgment-free – book yours now.

What to read next

  • What happens if you don’t pay your debts in Canada?
  • Does owing taxes affect your credit score?
  • Consumer proposal vs bankruptcy: what’s the difference?
  • How to stop collection calls in Canada

 

]]> Surplus income limits in Canada – updated for 2026 https://www.spergel.ca/learning-centre/surplus-income-limits/ Wed, 04 Mar 2026 14:51:10 +0000 https://www.spergel.ca/?p=11887

Surplus income refers to the portion of household net income that exceeds a government-set threshold based on family size. If your income is above this limit, you are required to contribute 50% of the excess toward your bankruptcy payments.

These limits help ensure individuals and families filing bankruptcy can maintain a reasonable standard of living while still contributing fairly to their creditors.

Below are the most recent surplus income limits for 2025.

Current surplus income limits – monthly thresholds (2025)

Household size Threshold (CAD)
1 $2,666
2 $3,318
3 $4,080
4 $4,953
5 $5,618
6 $6,336
7 $7,054

The Office of the Superintendent of Bankruptcy typically updates surplus income limits annually. These limits apply across Canada, regardless of province. The 2026 thresholds have not yet been released, so the table above reflects the most recent limits (2025). We will update this page as soon as the new figures are published.

When will the 2026 surplus income limits be released?

The Office of the Superintendent of Bankruptcy usually updates surplus income limits once per year to reflect changes in income levels and the cost of living in Canada.

New limits are typically announced in early April. Once the 2026 thresholds are released, we will update this page with the latest figures.

How surplus income limits have changed in recent years

Household Size 2024 2025
1 $2,610 $2,666
2 $3,249 $3,318
3 $3,995 $4,080
4 $4,850 $4,953
5 $5,501 $5,618
6 $6,204 $6,336
7 $6,907 $7,054

These 2025 numbers match the official surplus income standards used by Licensed Insolvency Trustees across Canada. The increase reflects adjustments made by the Office of the Superintendent of Bankruptcy to account for inflation and changes in the cost of living.

Surplus income limits: key facts

    • Surplus income is based on household net income after taxes.
    • Payments equal 50% of income above the threshold.
    • Calculations are based on average monthly income during bankruptcy.
    • Higher surplus income can extend the length of bankruptcy.

Put simply: if you earn more, you pay more during bankruptcy.

What is surplus income in bankruptcy?

Surplus income is calculated by comparing your household’s net monthly income to the government threshold for your family size.

Surplus income formula

Monthly household net income − OSB surplus income threshold = Surplus income

You must then pay half of that surplus into your bankruptcy estate.

Example: How surplus income is calculated

Imagine you live with your partner and your household size is two people.

Household net income: $3,800
2025 threshold for two people: $3,318

Step 1
$3,800 − $3,318 = $482 surplus

Step 2
50% × $482 = $241 monthly surplus payment

This payment would continue during the bankruptcy period.

How surplus income affects the length of bankruptcy

Surplus income can also affect how long your bankruptcy lasts.

For first-time bankruptcies:

Situation Bankruptcy Length
No surplus income 9 months
Surplus under $200/month (average) 9 months
Surplus over $200/month (average) 21 months

For second bankruptcies:

Situation Bankruptcy Length
No surplus income 24 months
Surplus over $200/month 36 months

At Spergel, many clients are surprised to learn that even moderate income increases can extend bankruptcy by an additional 12 months.

Why surplus income limits increase each year

The OSB adjusts surplus income thresholds annually to reflect:

    • Inflation
    • Changes in average Canadian income
    • Rising living costs

These updates ensure bankruptcy rules continue to allow individuals and families to maintain a reasonable standard of living.

What if your income changes during bankruptcy?

Surplus income payments are based on average income throughout your bankruptcy, not just one month.

If your income increases: surplus income payments will increase.

If your income decreases: surplus income payments may decrease.

This is particularly relevant for people who are:

    • Self-employed
    • Commission-based
    • Receiving bonuses or overtime
    • Working irregular hours

Even temporary increases in income can affect your average surplus income calculation and may extend your bankruptcy.

Why surplus income can make bankruptcy more expensive

Many people assume bankruptcy is the lowest-cost debt solution.

However, if your income is above the surplus threshold, bankruptcy payments can increase significantly – and the bankruptcy period may also be extended.For individuals whose income is close to the threshold, even small income increases can make bankruptcy more expensive than alternative debt solutions.

Consumer proposal vs bankruptcy: why surplus income matters

A consumer proposal is a common alternative to bankruptcy.

One key difference is that consumer proposal payments are fixed.

This means:

    • Your payment amount is negotiated upfront with creditors
    • Increases in income do not increase your monthly payment
    • Your payment schedule does not extend due to income increases

Consumer proposals can also reduce debt by up to 80%, depending on the circumstances.

At Spergel, 99% of consumer proposals we file are accepted by creditors.

How to estimate your bankruptcy payment

To estimate whether surplus income may apply:

  1. Determine your household size
  2. Calculate your average monthly net income
  3. Subtract the OSB surplus income threshold
  4. Divide the result by two

If your average surplus exceeds $200 per month, your bankruptcy may be extended by an additional year.

Because calculations can vary depending on allowable expenses and household income structure, it’s important to review your situation with a Licensed Insolvency Trustee.

Struggling with bankruptcy payments or surplus income?

Surplus income rules can make bankruptcy more expensive than many Canadians expect.

If you’re unsure whether bankruptcy or a consumer proposal is the better option, Spergel’s Licensed Insolvency Trustees offer free, confidential consultations to review your income, household size, and debt.

We’ve been helping Canadians find debt relief for over 35 years, and we’ll help you understand your options clearly before you make a decision.

What to read next

FAQs

Yes. Surplus income limits are set federally under the Bankruptcy and Insolvency Act and apply across Canada.

Surplus income is calculated using net household income, meaning income after taxes and statutory deductions.

Certain allowable expenses may be considered when calculating surplus income, including:

  • Childcare expenses
  • Medical costs
  • Court-ordered support payments

A Licensed Insolvency Trustee reviews these when determining your payments.

Yes. If your income changes during bankruptcy, your required payments may also change because the calculation is based on average income over the bankruptcy period.

No. Consumer proposal payments are fixed and do not increase if your income increases.

]]> Tax Stress Survey 2026: A cash-flow stress test for Canadians https://www.spergel.ca/learning-centre/spergel-canadian-tax-stress-survey-2026/ Tue, 24 Feb 2026 14:37:33 +0000 https://www.spergel.ca/?p=16442

To understand the tax stress Canadians are experiencing, Spergel ran the Canadian Tax Stress Survey 2026. With 210 responses, the story is clear: many Canadians are bracing to owe money, a meaningful share are feeling real anxiety, and a growing number expect they’ll need a payment plan to manage what they owe.

The big takeaway: “I’m worried I’ll owe, and I can’t afford it”. Instead of confusion or paperwork, the top driver of stress was affordability. Over half of respondents selected “Worried I’ll owe money or can’t afford to pay” as a key reason tax season feels stressful. In other words, absorbing the cost is a bigger fear than owing. Many expect to owe and some expect the bill to be significant. In this survey, about 1/3rd of respondents said they expect they’ll owe money when they file. Among those expecting to owe, a meaningful portion estimate balances in the $1,000+ range, with a smaller but important group expecting $2,500+, $5,000+, and even $10,000+.

Some respondents said tax stress is affecting daily decisions and wellbeing. A portion reported cutting back on essentials like groceries, rent, or utilities due to tax stress. Others reported lost sleep or persistent worry. When Canadians think they’ll owe, the most common answer is a payment arrangement. Nearly as many respondents said they don’t know yet, another signal that uncertainty and cash-flow instability are central to the tax stress experience.

What Canadians say would actually help next year

When asked what would reduce tax stress, respondents were remarkably consistent: they want clarity and predictability. The top request was a simple way to estimate whether they’ll owe or get a refund. Other high-demand supports included: someone to talk to, payment-arrangement guidance, and a straightforward checklist.

Comparative table: the headline stats

What we asked What Canadians told us
Expect to owe money when they file ~1 in 3
Not sure what will happen when they file ~1 in 5
Average tax stress score (1–5) 3.15
Worried they’ll owe money or can’t afford to pay 53% (111 of 210)
Cut back on essentials due to tax stress 24% (51 of 210)
Lost sleep or persistent worry due to tax stress 21% (45 of 210)
If they owe, most common plan is a payment arrangement 27%
“I don’t know yet” how they’ll cover a tax bill 21%

(All figures come from the survey results export of 210 respondents. Multi-select questions are reported here as “% of respondents” for clarity.)

“Behind tax stress is often a cash-flow reality, Canadians are worried about a bill they can’t absorb. The earlier someone seeks clarity, the more options they typically have.” Gillian Goldblatt, Partner, Licensed Insolvency Trustee, msi Spergel Inc.

A real client’s story: Jordan

Jordan, a former client, described the turning point simply: “Finding Spergel was a turning point for me.”

In Jordan’s case, Spergel helped reduce his tax debt through reassessment and appeals, and put a manageable plan in place so the stress finally eased.

Click here to read more.

What to do if tax season is causing stress

If any of this sounds familiar, you are not alone. It can help to understand your options early, even if you are not ready to take action.

Depending on your situation, solutions may include:

    • A quick “tax check” before you file: what you owe today, what you expect to owe, and what you can realistically afford monthly.
    • Getting clarity on CRA payment arrangements (how they work, what payments might look like, and what to do if you can’t pay in full).
    • Catching up on unfiled returns so you can reduce uncertainty and avoid compounding penalties and interest.
    • A consumer proposal (can reduce monthly payments and stop interest), in cases where tax debt and other debts have become unmanageable.
    • Support tools like checklists and budgeting trackers to plan for a balance owing and avoid surprises next year.

Spergel offers free, confidential 30-minute consultations to help Canadians understand their options and next steps, without judgment.

]]> 2026 Canada tax deadline: when to file and when to pay https://www.spergel.ca/learning-centre/canada-tax-deadline/ Wed, 18 Feb 2026 17:14:07 +0000 https://www.spergel.ca/learning-centre/canada-tax-deadline/

Missing a Canada Revenue Agency (CRA) deadline can result in late-filing penalties, daily compound interest, frozen benefits and credits or CRA collection action. This guide breaks down 2026 Canada tax deadlines, payment dates, installment dates, and what happens if you miss them.

2026 Canada tax deadlines at a glance

  • Personal tax filing deadline: April 30, 2026
  • Personal tax payment deadline: April 30, 2026
  • Self-employed filing deadline: June 15, 2026
  • RRSP contribution deadline: March 2, 2026
  • Quarterly installment dates: March 15, June 15, September 15, December 15

What is the tax filing deadline in Canada for 2026?

Personal income tax returns (2025 tax year)

  • Filing deadline: April 30, 2026
  • Payment deadline: April 30, 2026

If you owe money, payment must be received by April 30, 2026 to avoid interest – even if you qualify for an extended filing deadline.

Self-employed individuals

  • Filing deadline: June 15, 2026
  • Payment deadline: April 30, 2026

Even though you have until June to file, interest starts accruing after April 30 if you owe taxes.

Corporate income tax

  • Filing deadline: Six months after your fiscal year-end
  • Payment deadline: Generally two months after year-end
  • Canadian-Controlled Private Corporations (CCPCs) claiming the small business deduction may have three months to pay

Trust returns

  • Filing deadline: March 31, 2026 (for trusts with a December 31, 2025 year-end)

Trust reporting rules remain stricter under expanded disclosure requirements, so professional advice is recommended.

When are tax installments due in 2026?

If you’re required to make quarterly installment payments, deadlines are:

  • March 15, 2026
  • June 15, 2026
  • September 15, 2026
  • December 15, 2026

The CRA typically requires installments if you owe more than $3,000 ($1,800 in Quebec) for two consecutive years.

What happens if you file taxes late in Canada?

The CRA penalty is:

  • 5% of the balance owing, plus
  • 1% per month the return is late (up to 12 months)

If you were late in previous years, penalties may double. Interest is calculated daily and compounds until paid in full. At Spergel, our Licensed Insolvency Trustees regularly see tax debts double within a few years due to accumulated penalties and daily compound interest. The CRA sets its prescribed interest rate quarterly. As of early 2026, the rate on overdue taxes is significantly higher than traditional lending rates, making unpaid balances expensive to carry.

What if you miss the tax payment deadline?

If you file on time but don’t pay:

Filing late and paying late increases the financial impact significantly.

How does CRA collect unpaid taxes?

Unlike private creditors, the CRA does not need a court order to begin collection action. They can:

  • Garnish wages directly through your employer
  • Freeze and seize bank accounts
  • Place liens on property
  • Redirect tax refunds and government benefits

Because of these powers, ignoring CRA tax debt is rarely effective.

What if you can’t pay your taxes?

If you can’t afford your tax bill, still file on time to avoid late-filing penalties.

Your options may include:

1. CRA payment arrangement

You may negotiate monthly payments directly with the CRA.

2. Taxpayer relief provisions

You can apply to have penalties or interest reduced due to:

3. Consumer proposal

A legally binding agreement filed through a Licensed Insolvency Trustee that can reduce CRA tax debt.

CRA tax debt is unsecured debt and can be included in a consumer proposal.

4. Bankruptcy

In severe cases, bankruptcy may eliminate tax debt.

If you’re unsure which option is right, speaking to a Licensed Insolvency Trustee is often the safest first step.

GST and HST filing deadlines (2026)

Deadlines depend on your reporting period:

  • Monthly/quarterly filers: Due 1 month after reporting period ends
  • Annual filers: Due 3 months after year-end
  • Annual (calendar year-end): Filing due June 15, payment due April 30

Even if you had no business activity, returns must still be filed.

Other important 2026 tax dates

  • Earliest date to file: Mid-February 2026 (CRA typically opens NETFILE)
  • RRSP contribution deadline (for 2025 tax year): March 2, 2026
  • T4 and T5 slip deadline: February 28, 2026
  • NR4 deadline: March 31, 2026

Contributing to your RRSP before the deadline may reduce your taxable income.

2026 Canada tax deadline: Frequently Asked Questions

What is the last day to file taxes in Canada in 2026?

April 30, 2026 for most individuals. Self-employed individuals have until June 15, 2026 to file, but payment is still due April 30.

Does owing taxes affect your credit score?

The CRA does not report directly to credit bureaus. If, however, your tax debt results in a lien or legal judgment, it may affect your credit.

What happens if you haven’t filed taxes in 5 years?

The CRA can:

  • Issue arbitrary assessments
  • Apply penalties and daily interest
  • Garnish wages
  • Freeze bank accounts
  • Withhold benefits

The longer you wait, the harder it becomes to resolve.

Can tax debt be included in a consumer proposal?

Yes. CRA tax debt is unsecured and can be included in a consumer proposal, which may reduce the total amount owed.

Is there a penalty if you file taxes but don’t pay?

Yes. Filing avoids the 5% late-filing penalty, but interest begins immediately on unpaid balances after April 30.

Can the CRA take money from your bank account without notice?

The CRA can issue a Requirement to Pay to your financial institution, which may result in funds being frozen or seized.

Tips for a smoother 2026 tax season

  • Organize slips early (T4, T5, RRSP receipts)
  • Use CRA My Account to check balances and installment requirements
  • File electronically using NETFILE or EFILE
  • Review prior year carry-forward credits
  • Don’t ignore CRA letters

Struggling with tax debt?

At Spergel, we regularly help Canadians who:

  • Owe back taxes
  • Have unfiled returns
  • Are facing CRA collection action
  • Can’t afford installment payments

If tax debt is keeping you up at night, you’re not alone.

Book a free, no-obligation consultation with a Licensed Insolvency Trustee to explore your options and stop the stress.

What to read next

]]> Grocery Debt: the “New Normal” for Canadians in 2026: What Spergel’s survey reveals https://www.spergel.ca/learning-centre/grocery-debt-the-new-normal-for-canadians-in-2026/ Tue, 17 Feb 2026 15:56:27 +0000 https://www.spergel.ca/?p=16085

If it feels like groceries are eating up more of your budget, you are not imagining it.

In a recent Spergel survey, respondents reported cutting back on food, relying on credit for groceries, and delaying bills to keep food on the table. In a drastic shift from normal shopping habits, respondents demonstrated financial coping behaviors that often show up when household cash flow has no breathing room. These findings are consistent with higher average costs of living we’re seeing across Canada.

Our findings below show how most people are managing their grocery budget across Canada, and what our trustees are noticing through their clients and consultations.

Key findings from the Spergel survey

  • 60.6% said they skipped meals or reduced portions due to financial pressure in the past 6 months.
  • Over half of the respondents used BNPL/line of credit/payday loans to buy groceries in the past 6 months, and 70.3% are in the “credit orbit” (used it or have seriously considered it).
  • 2/5 of Canadians delayed paying a bill so they could buy groceries in the past 6 months.
  • 57.6% worried about grocery money at least sometimes in the past 6 months.
  • 1 in 2 Canadians feel that debt payments made essentials at least somewhat harder (groceries, rent, utilities) in the past 6 months.

Respondents also described common coping behaviours: 55.8% shopped at multiple stores to chase deals, 49.1% bought less meat/protein, 49.1% used coupons or price matching more than before, and 44.2% bought fewer fruits and vegetables.

What does grocery debt and bill juggling look like?

When people hear “food insecurity,” they often think of an extreme situation. In reality, many households first feel it through everyday trade-offs:

  • putting groceries on credit
  • delaying a bill to pay for food
  • cutting back on healthier foods because they cost more
  • worrying at the checkout even when they have a job and are “getting by”

These patterns matter because they can create a cycle. If groceries go on credit, then bills get delayed, then late fees and interest pile up, and debt stress grows. Many people describe constant stress at the checkout and ongoing worry about groceries. 

“For many Canadians, the warning sign is not one big financial event. It is the steady pressure of higher living costs combined with existing debt payments. We are seeing the cost of groceries show up in real household budgets. When budgets do not stretch, people lean on credit or start shuffling payments to get by.” – Rob Kilner, Partner and Licensed Insolvency Trustee, Spergel.

Learn more about how debt affects mental health: Debt Load and the Impact to Psychological Wellbeing Study.

What Canadians told us, and why it matters right now

What we asked Canadians

What the survey found

What it means

Why this matters now in Canada

Are people cutting back on food?

60.6% skipped meals or reduced portions (past 6 months)

Many are eating less because money is tight.

Food insecurity has been rising nationally (10 provinces): 22.9% in 2023. (Statistics Canada)

Are people “financing” groceries?

53.2% used credit/BNPL/LOC/payday loans for groceries (past 6 months)

Groceries are becoming a debt expense, not just a household expense.

Grocery prices are still rising: “food purchased from stores” was +5.0% YoY in Dec 2025. (Statistics Canada)

Are people juggling bills to buy food?

40.5% delayed paying a bill so they could buy groceries

This signals cash-flow strain that can spiral into arrears and deeper debt.

Record food bank demand suggests strain is widespread: nearly 2.2M visits in March 2025. (Food Banks Canada)

Is food stress widespread (even before food bank use)?

57.6% worried about grocery money at least sometimes (past 6 months)

Stress is broad. Even households not using food banks may be one unexpected expense away.

National estimates show food insecurity continued rising: 25.5% in 2024 (10 provinces). (PROOF)

Is debt directly squeezing essentials?

51.7% said debt payments made essentials harder (past 6 months)

Debt is competing with rent, utilities, and groceries.

Rising food insecurity and record food bank usage align with household budget pressure.
(Statistics Canada)

 Note: Our findings are from a survey of 269 Canadians. National figures are measured differently, but they help put these experiences in context.

What to do if groceries are going on credit

If any of this sounds familiar, you are not alone. It can help to understand your options early, even if you are not ready to take action.

Depending on your situation, solutions may include:

  • Budgeting and planning tools like budget trackers to help regain control.
  • Reducing spend on food delivery apps and trying “Pantry-First” meal planning.
  • A consumer proposal (often reduces monthly payments and stops interest), in cases of severe debt load.

Spergel offers free, confidential 30-minute consultations to help Canadians understand their options and next steps, without judgment.

]]> The average cost of living in Canada: a breakdown by province in 2026 https://www.spergel.ca/learning-centre/average-cost-of-living-in-canada/ Thu, 12 Feb 2026 19:53:14 +0000 https://www.spergel.ca/learning-centre/average-cost-of-living-in-canada/

The cost of living in Canada remains a major concern in 2026, as housing, groceries, and transportation continue to pressure household budgets – but how much you pay depends heavily on where you live.

In this updated 2026 guide, we break down the average monthly cost of living by province, explain the key trends driving prices, and show how Canadians can manage rising expenses. Whether you’re planning a move or trying to understand how your spending compares nationally, this guide gives you a clear, data-backed snapshot of living costs across Canada.

Cost of living in Canada in 2026: quick summary

According to aggregated cost-of-living data from Statistics Canada and the national cost-of-living datasets:

    • Average monthly cost for a single person: $3,300–$3,800
    • Average monthly cost for a family of four: $5,900–$6,400
    • Most expensive provinces: British Columbia and Ontario
    • Most affordable provinces: Saskatchewan, Manitoba, Atlantic Canada
    • Housing remains the largest expense nationwide

Food prices are expected to rise 4-6% in 2026, adding nearly $1,000 per year to grocery bills for a typical family, according to the Canada Food Price Report.

 

Struggling with debt and the cost of living? Speak to an advisor today.

What is the cost of living?

The cost of living is the amount of money needed to cover essential expenses such as housing, food, transportation, utilities, healthcare, and insurance. It acts as a benchmark for how affordable it is to live in a particular area.

In Canada, cost of living varies widely between provinces and cities. Major urban centres tend to have higher housing and rental costs, while smaller cities and rural areas often offer more affordable options. Inflation – tracked through Statistics Canada’s Consumer Price Index – changes in interest rates, and regional economic trends all influence how far your income stretches. Understanding cost of living is essential for budgeting, salary planning, and long-term financial stability.

What’s driving the cost of living in Canada in 2026?

Several factors are shaping household expenses across the country:

Food and grocery prices

Food prices rose faster than general inflation through 2025, and the Canada Food Price Report forecasts another 4-6% increase in 2026. For a typical family of four, this could mean nearly $1,000 more per year spent on groceries.

Housing and rent

Shelter remains the single largest expense for most Canadians. While rent growth has slowed compared to earlier spikes, rents and housing costs remain elevated in major cities and continue to consume a significant share of household income.

Interest rates and borrowing costs

Higher borrowing costs affect mortgages, loans, and credit payments, increasing monthly financial obligations for many households.

Energy and transportation

Utility bills, fuel prices, and transportation costs vary by region and climate, especially during winter months.

Average cost of living by province in 2026

These estimates reflect typical monthly expenses including rent, food, and essentials, and are intended as general benchmarks rather than precise budgets.

Province Single (Monthly) Family of 4 Affordability
British Columbia $3,500–$4,100 $6,600–$7,700 High cost
Alberta $3,000–$3,600 $5,800–$6,600 Moderate
Saskatchewan $2,800–$3,300 $5,200–$5,900 Affordable
Manitoba $2,900–$3,400 $5,400–$6,100 Affordable
Ontario $3,800–$4,400 $6,800–$7,900 High cost
Quebec $2,700–$3,300 $5,300–$6,000 Moderate
New Brunswick $2,300–$2,700 $4,300–$4,800 Affordable
Nova Scotia $2,700–$3,100 $4,900–$5,500 Moderate
Prince Edward Island $2,600–$3,100 $5,000–$5,700 Moderate
Newfoundland & Labrador $2,700–$3,100 $5,000–$5,600 Moderate
Northern Territories $3,600–$4,600 $6,800–$7,900 Very high

Cost of living by province: detailed breakdown

British Columbia

BC remains expensive, largely due to Vancouver’s housing market, which consistently ranks among the highest in Canada. High demand and limited supply continue to pressure renters and homebuyers.

Alberta

Alberta offers more affordable housing than BC and Ontario, though transportation costs can be higher due to car dependency. Cities like Calgary and Edmonton remain attractive for affordability.

Saskatchewan

Saskatchewan continues to be one of Canada’s most affordable provinces, with lower housing and utility costs and relatively stable living expenses.

Manitoba

Winnipeg and surrounding areas provide affordable housing and moderate overall expenses, making Manitoba appealing for budget-conscious households.

Ontario

Ontario has some of the highest living costs in Canada. Toronto’s housing market significantly increases average expenses, especially for renters.

Quebec

Quebec offers comparatively affordable housing and utilities. Montreal and Quebec City remain more accessible than many major Canadian cities.

Atlantic provinces

New Brunswick, Nova Scotia, PEI, and Newfoundland and Labrador generally offer lower housing costs, though rising demand has increased prices in some urban areas.

Northern territories

The territories face unique cost challenges due to transportation logistics and limited access to goods, resulting in higher food and utility expenses.

What is the cost of living vs income in Canada?

While headline inflation has moderated, essential expenses such as food and shelter remain a significant burden for many households. Canada Mortgage and Housing Corporation (CMHC) and Statistics Canada use 30% of before-tax household income as a key affordability threshold – households spending 30% or more on shelter are considered to face affordability pressures.

In several major cities, a substantial share of renters exceed this threshold, and higher shelter-cost-to-income brackets (such as 40%+) are more common among lower-income households. Over time, this can increase financial stress and the risk of debt. 

How are Canadians coping with rising living costs?

Many households are adapting by:

    • Creating stricter monthly budgets
    • Reducing discretionary spending
    • Building emergency savings
    • Paying down high-interest debt
    • Seeking professional financial advice

Even small adjustments can improve long-term financial stability.

Signs the cost of living may be affecting your finances

If rising expenses are putting pressure on your budget, you may notice:

    • Increasing credit card balances
    • Difficulty covering essential bills
    • Using credit for groceries or rent
    • Delayed savings or missed payments
    • Persistent financial stress

Recognizing these signs early can help prevent deeper financial problems.

Licensed Insolvency Trustees can help assess your situation and explore solutions tailored to your needs. You can book a free, no-obligation consultation with a Licensed Insolvency Trustee at Spergel.

How can you manage the cost of living and debt?

At Spergel, we understand how rising living costs can create financial strain. If you’re struggling to manage expenses or debt, professional guidance can make a meaningful difference.

Licensed Insolvency Trustees can help you explore options such as:

A free consultation can help you understand your options and take the first step toward financial stability.

Key takeaways

    • Housing remains the largest driver of living costs
    • Provincial differences significantly affect affordability
    • Food prices continue to rise faster than general inflation
    • Early financial planning can prevent long-term debt stress

Sources and methodology

This guide draws on national economic and housing data from:

    • Statistics Canada (Consumer Price Index and housing data)
    • Canada Mortgage and Housing Corporation (CMHC)
    • Canada Food Price Report
    • Aggregated provincial cost-of-living datasets

What to read next

FAQs

Saskatchewan and Manitoba are generally considered among the most affordable provinces due to lower housing costs and moderate living expenses.

British Columbia and Ontario typically rank as the most expensive, largely driven by housing markets in Vancouver and Toronto.

A single person typically needs $3,000–$4,000 per month, while a family of four may require $6,000–$8,000, depending on location and lifestyle.

 It may be sufficient in smaller cities or rural areas, but it can be tight in high-cost urban centres.

Vancouver is widely considered the most expensive city in Canada, mainly due to high housing and rental costs. Toronto ranks close behind, with similarly elevated everyday expenses compared to most other Canadian cities.

Living costs in Canada are broadly comparable to the United States and vary by city. Large Canadian cities like Vancouver and Toronto are similar in cost to major U.S. urban centres, while many mid-sized Canadian cities remain more affordable. Canada’s publicly funded healthcare can also reduce out-of-pocket medical expenses.

The salary needed to live comfortably in Canada depends on location and lifestyle. In general, a single person may need around $55,000-$75,000 per year, while a family of four may require $90,000-$120,000 or more, particularly in higher-cost cities where housing expenses are significant.

]]> Informal Debt Settlement in Canada (2026): How it Works, Risks, and Better Alternatives https://www.spergel.ca/learning-centre/how-to-negotiate-with-your-creditors-in-2026/ Fri, 06 Feb 2026 15:34:47 +0000 https://www.spergel.ca/?p=15953 Many Canadians want to get out of debt without filing anything formal – no bankruptcy, no consumer proposal, no court process, and no trustee involvement. That’s where informal debt settlement comes in.

Informal debt settlement means negotiating directly with your creditors to accept less than the full amount you owe – without filing a formal insolvency process. It can work, especially for older debts or accounts already in collections. But it can also be complicated, risky, and unpredictable – which is why understanding how it works is essential before you try it.

This guide walks you through exactly how informal settlement works in Canada, step-by-step. You’ll learn:

  • Which debts you can settle informally
  • How much creditors typically accept
  • How to contact creditors (with scripts and templates supplied)
  • What to watch out for (legal risks and scam warnings)
  • Case studies showing real outcomes
  • When to consider alternatives like a consumer proposal (a much safer option if DIY negotiations fail)

By the end, you’ll know whether informal settlement is a realistic option for your situation – and what to do next if it isn’t.

What is informal debt settlement?

Informal debt settlement is a private negotiation between you and a creditor where you offer a lump-sum payment that is less than the full amount owing. If accepted, the creditor agrees to close the account and stop collections.

There is:

It’s effectively a DIY negotiation.

For example:

Let’s say you owe $8,000 on a credit card.
You offer $2,800 as a one-time payment.
If your creditor agrees, they mark the debt as settled or “paid for less than full balance.”

Compared to consumer proposals, bankruptcy, or debt consolidation, informal settlement offers far less certainty and protection. For Canadians trying to settle debt without a Licensed Insolvency Trustee, informal settlement is often the first option explored.

OptionLegal ProtectionStops CollectionsReduces PrincipalIncludes CRA DebtPredictabilityCredit Impact
Informal Debt SettlementNoNoSometimesNoLowModerate–High
Consumer ProposalYesYesYesYesHighModerate
Debt ConsolidationNoNoNoNoMediumLow–Moderate
BankruptcyYesYesYesYesHighHigh

How does informal debt settlement work in Canada?

Informal debt settlement follows a predictable pattern. While the outcomes can vary, creditors tend to respond based on the risk, age of debt, and likelihood of repayment.

Step 1: Assess your debt

Start by listing:

  • Each creditor
  • Current balance
  • Type of debt (credit card, loan, collection account)
  • How long the account has been delinquent

Unsecured debts that are six months or more past due are typically more negotiable. According to the Financial Consumer Agency of Canada (FCAC), many lenders charge off accounts after roughly 180 days of non-payment, which is often when settlement discussions become more realistic.

Step 2: Prepare your settlement offer

Most informal settlements are lump-sum offers, not payment plans.

As a general rule:

  • Older, charged-off debts = lower settlement ranges
  • Newer debts = higher resistance

Canadian non-profit credit counselling organizations note that informal settlements may range from 20% to 80% of the original balance, depending on the creditor and the age of the debt. The Credit Counselling Society reports that settlements within this range are possible, with lower percentages typically tied to older accounts or significant financial hardship.

Step 3: Contact creditors (scripts provided in this guide)

Reach out to the original creditor or, if the account has been transferred, the collection agency handling it. Ask whether they are open to a lump-sum settlement and confirm the balance owing. Keep the conversation simple – don’t disclose your assets or banking details, and don’t make promises until terms are agreed in writing. Phone is often fastest, but email provides written proof.

Step 4: Get the agreement in writing

Before paying:

  • Confirm the exact amount
  • Confirm the account will be marked “settled” or “paid for less than full balance”
  • Ensure the agreement is written (email or letter)

Step 5: Keep all documentation

Save:

  • Settlement agreements
  • Proof of payment
  • Correspondence

Documentation is critical if disputes arise later.

What types of debt can be settled informally in Canada?

Debts that may be settled informally

  • Credit cards
  • Personal loans
  • Lines of credit
  • Collection accounts

These are typically unsecured debts, meaning there is no asset tied to them.

Debts that cannot be settled informally

  • CRA tax debt
  • Most government student loans
  • Child support or spousal support

The Canada Revenue Agency (CRA) doesn’t accept informal settlements. Tax debt must be addressed through repayment arrangements or formal insolvency processes such as a consumer proposal.

How much will creditors settle for in Canada?

Many Canadians ask: “how much will creditors actually accept?”

While many settlements fall in the 20–60% range, outcomes can vary more widely depending on the age of the debt, the creditor, and individual circumstances.

Typical settlement ranges

  • 20–30%: older collection accounts, low recoverability
  • 30–50%: charged-off debts, moderate risk
  • 50–60%: newer delinquent accounts

Canadian non-profit credit counselling organizations note that creditors may be more willing to negotiate after a debt has been charged off, since they’ve already recognized the loss.

Factors that affect acceptance

  • Age of the debt
  • Whether the debt is with the original lender or a collection agency
  • Lump-sum availability
  • Province and limitation periods
  • Your financial situation and asset exposure

It’s important to note that there is no guaranteed acceptance, even within typical ranges.

What are the risks of informal debt settlement in Canada?

Statute of Limitations

Most provinces limit how long creditors can sue:

  • Ontario, BC, Alberta: 2 years
  • Several other provinces: up to 6 years

The FCAC clarifies that limitation periods don’t erase the debt, but they often influence creditor willingness to settle. Making a payment or acknowledging the debt can restart the limitation period, depending on the province.

When creditors refuse

Creditors may refuse if:

  • The debt is recent
  • You appear able to repay in full
  • The account is secured
  • Legal action is already underway

Scam avoidance

Be cautious of companies that:

  • Guarantee results
  • Charge large upfront fees
  • Tell you to stop communicating with creditors
  • Claim they can “erase” debt

Spergel regularly sees clients harmed by failed settlement attempts.

How does informal debt settlement affect your credit score in Canada?

Settled accounts typically appear as:

  • “Settled”
  • “Paid for less than full balance”

Under Canadian reporting rules, negative information – including settled accounts – typically remains on your credit report for up to six years.

Short-term credit scores often drop, but many Canadians rebuild over time – especially when settlement prevents further delinquencies.

Real examples of informal debt settlement in Canada

Scenario 1: Single credit card settled for 30%

Alex, in Ontario, had a $7,500 credit card that had been unpaid for over a year and sent to collections. With help from family, Alex offered a lump sum and the collection agency accepted 30% to close the account.
Outcome: settled notation; collections stopped.

Why it worked: old, unsecured debt already charged off.

Scenario 2: Partial settlements and proposal

Maya, in BC, owed $28,000 across three unsecured debts. She settled two accounts at reduced amounts but one major creditor refused.
Outcome: she filed a consumer proposal to legally resolve the remaining balance.

Why: informal settlements are not guaranteed with all creditors.

Scenario 3: CRA debt required formal solution

Samir owed $18,000 in taxes and tried to negotiate directly. The CRA does not accept informal settlements, so private negotiation wasn’t possible.
Outcome: a consumer proposal allowed him to include the tax debt and stop collections.

Key point: government debt often requires formal processes.

Scenario 4: Recent delinquency resulted in consolidation instead

Riley was only 60 days behind on $12,000 of debt. The creditor declined a reduced lump-sum because the debt was recent.
Outcome: a debt consolidation loan lowered his interest and made repayment manageable.

Lesson: informal settlement works best with older or charged-off debts.

What are the alternatives to informal debt settlement in Canada?

Informal debt settlement isn’t always successful, and it isn’t suitable for every type of debt. If negotiations fail – or if you need more certainty, legal protection, or the ability to deal with multiple creditors at once – it’s important to understand the formal debt relief options available in Canada. These alternatives can provide clearer timelines, stronger protection, and more predictable outcomes.

Consumer proposal

A consumer proposal is a legally binding solution administered by a Licensed Insolvency Trustee. According to the Office of the Superintendent of Bankruptcy, consumer proposals account for nearly 80% of consumer insolvency filings in Canada, representing 78.8% in 2024.

They:

  • Stop collections and lawsuits
  • Can reduce debts by up to 80%
  • Include CRA debt
  • Offer predictable payments

Debt consolidation

Consolidating multiple debts into a single loan combines several balances into one repayment, often with a lower interest rate or fixed schedule. While it can simplify payments and reduce interest costs, it does not reduce the total amount owed and typically requires sufficient credit or income to qualify.

Bankruptcy

Filing for bankruptcy in Canada is a legal process administered by a Licensed Insolvency Trustee that can eliminate most unsecured debts when repayment is no longer realistic. It provides immediate protection from creditors, but can have significant and long-lasting impacts on your credit and may involve asset and income reporting requirements.

Debt settlement templates and scripts

Sample letters, emails, and phone scripts you can use

If you decide to attempt an informal debt settlement, having the right wording matters. The templates below are designed to help you open a negotiation clearly and professionally, without admitting fault or making commitments before terms are agreed in writing.

These examples are for unsecured debts only and should be adapted to your situation.

Debt settlement letter template (lump-sum offer)

Use this when writing to a creditor or collection agency by mail or email.

I am currently experiencing financial hardship and am unable to repay the full balance of this account.

I would like to resolve this matter and can offer a one-time lump-sum payment of $____ as full and final settlement of the account, provided the balance is reported as settled or paid for less than the full amount owed.

Please confirm in writing whether this offer is acceptable and that no further balance will be owing once payment is made.

Tip: Do not send payment until you receive written confirmation of the settlement terms.

Phone call script: how to ask about a settlement

Phone calls are often the fastest way to determine whether a creditor is open to negotiation.

“I’m calling to ask whether you’re open to discussing a lump-sum settlement to resolve this account. I’m not able to repay the full balance, but I may be able to make a one-time payment if terms can be agreed in writing.”

If they ask for details you’re not ready to share:

“I’d prefer to review any settlement options in writing before discussing payment.”

Debt settlement email template

This can be used as a first contact or follow-up after a phone call.

I’m writing regarding the balance on my account. Due to financial hardship, I’m unable to repay the full amount.

I may be able to make a one-time lump-sum payment to settle the account, depending on the terms. Please let me know if you’re open to discussing a settlement and what information you require to proceed.

Important reminders before using these templates

  • Always get settlement terms in writing
  • Do not provide banking details until terms are confirmed
  • Keep copies of all correspondence and proof of payment
  • Understand that creditors are not required to accept informal settlements

When templates aren’t enough

If creditors refuse to negotiate, or if you’re dealing with multiple debts, government debt, or ongoing collection pressure, a consumer proposal may provide a more predictable and legally protected solution.

Informal debt settlement in Canada: FAQs

Is informal debt settlement legal in Canada?

Yes. Informal debt settlement is legal in Canada and involves negotiating directly with a creditor to accept less than the full amount owed. It is not, however, legally binding until payment is made, and creditors are not required to accept a settlement offer.

How much will creditors typically settle for in Canada?

Settlement amounts vary widely depending on the age of the debt, the creditor, and whether the account is in collections. Canadian non-profit credit counselling organizations note that informal settlements may range from 20% to 80% of the original balance, with outcomes depending on individual circumstances and creditor willingness.

Can CRA debt be settled informally?

No. Debts owed to the Canada Revenue Agency cannot be settled informally. Tax debt must be addressed through repayment arrangements or included in a formal insolvency process such as a consumer proposal or bankruptcy.

Is a consumer proposal better than informal settlement?

A consumer proposal may be a better option if you have multiple debts, need legal protection from creditors, or are dealing with government debt. Unlike informal settlement, a consumer proposal is legally binding and stops collection activity once filed.

Will settling a debt ruin my credit forever?

No. Settled accounts can negatively affect your credit score in the short term, but they do not stay on your credit report forever. Negative information typically remains for up to six years, after which it is removed, and many people are able to rebuild their credit over time.

Not sure which option is right for you?

Informal debt settlement can work in some situations – but it isn’t the right solution for everyone. If you’re unsure whether informal settlement, a consumer proposal, or another option makes the most sense for your situation, speaking with a Licensed Insolvency Trustee can help you understand your options clearly and without pressure.

At Spergel, consultations are confidential and judgment-free, and there’s no obligation to proceed. Book a free consultation to explore your options.

]]> Spergel’s Financial Hangover Survey & Results https://www.spergel.ca/learning-centre/spergels-financial-hangover-survey-results/ Thu, 15 Jan 2026 15:12:16 +0000 https://www.spergel.ca/?p=15627 New national data shows many Canadians are entering 2026 carrying fresh debt, heightened stress, and a growing tendency to avoid their finances altogether, patterns that echo earlier findings linking debt to anxiety, poor sleep, and declining mental health. The survey highlights the real cost of holiday overspending and why financial stress often peaks during the darkest weeks of winter, underscoring the need for clarity, support, and practical financial solutions.

Below is a snapshot of key findings from the study:

  • 51% of Canadians carried new holiday debt into January
  • 75% feel more financially stressed heading into this January compared to previous years
  • 29% are starting the year with over $6,000 in new holiday debt
  • 1 in 2 Canadians say holiday debt harmed their mental health
  • January credit card stress averages 3.4 out of 5
  • 30% are actively avoiding checking their bank or credit card statements
  • 18% expect to fall behind on credit card payments this month
  • Nearly 1 in 3 Canadians expect it will take six months or longer to recover financially

To explore the full findings, view the complete Financial Hangover survey infographic below.

Download the Infographic

You’re not alone — and you’re not out of options. 

Judgment-free help starts with a conversation.

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