Debt Solutions for Single-Income Households: What Are Your Options?

If you’re holding down the fort on one income, you already know it’s no easy job. You’re covering the bills, keeping food on the table, maybe raising kids — and trying to keep everything from falling apart. When debt gets added to the mix? Things can go from stressful to overwhelming, fast.

Maybe your credit card keeps creeping up no matter how much you pay. Maybe your line of credit went from “just in case” to “everyday essential.” Or maybe you’re making every minimum payment and still can’t catch a break.

Here’s the truth: living in a single-income household doesn’t mean you should have to carry this alone. There are real debt solutions in Canada that can help you save money, lower your monthly payments, and get back on solid financial ground.

The Financial Challenges of a Single-Income Household

Higher Risk, Lower Flexibility

When your household relies on just one income, there’s zero room for surprises. A flat tire, a dental bill, or even a higher grocery run can throw everything off. And without a second paycheque to lean on, many people turn to payday loans or credit cards to fill the gaps — and those come with serious interest rates.

Why Debt Can Build Up Quickly

It doesn’t take long for debt to snowball. You use a credit card to get through the month, but then the next month’s interest makes it even harder to pay off. Add a line of credit or a payday loan to the mix, and suddenly you’re stuck juggling multiple high-interest payments with no end in sight.

Signs It’s Time to Get Help

You don’t need to hit rock bottom to ask for help. If you’re:

• Using credit for basics like groceries or gas
• Only paying the minimum and watching your balances grow
• Feeling anxious every time you check your bank account

…it’s time to look into some debt relief options. You deserve peace of mind—not just survival mode.

Affordable Debt Relief Options in Canada

Credit Counselling and Budget Planning

This is a great starting point. A credit counsellor will walk you through your income, expenses, and debts to help you build a budget that actually works for your life.

They can also help set up a debt management plan if you need more support.

Debt Consolidation Loans

This one can be helpful if you still have decent credit. A debt consolidation loan rolls multiple debts (like credit cards and payday loans) into one monthly payment, often at a lower interest rate. It’s a way to simplify things and potentially save money on interest, but it doesn’t work for everyone. Here’s what to know.

Consumer Proposals for Long-Term Relief

If you feel like you’ll never catch up, this might be your best bet.

A consumer proposal is a formal agreement (through a Licensed Insolvency Trustee) that lets you pay back only a portion of your debt. The rest gets forgiven—giving you room to breathe and rebuild.

Heads-up: It does affect your credit rating, but far less severely than bankruptcy. And once completed, you can start rebuilding your credit right away. You make one affordable monthly payment, keep your stuff, and finally stop the cycle.

How Debt Counselling Works

What to Expect in a Session

You’ll sit down with someone who knows the ropes and listens without judgment. They’ll go through your income, expenses, and debt, then help you figure out a plan. It’s not about making you feel bad, it’s about helping you breathe easier.

Pros and Cons

Here’s what to consider when you’re thinking about giving it a try.

Pros:

• One-on-one support
• A budget that works for your real life
• Can stop things from getting worse

Cons:

• Won’t reduce your total debt
• Won’t help if your debt is already too far gone

When It’s the Right Fit

If you’re falling behind but not drowning, credit counselling can help you get back on track. It’s especially helpful if you just need a plan — and maybe a bit of support — to take back control.

Bankruptcy as a Last Resort

What You Need to Know

Bankruptcy gets a bad rap, but sometimes it’s the right move. It legally wipes out most unsecured debt (like credit cards and payday loans), stops collection calls, and gives you a fresh start.

But it doesn’t come without some consequences. It affects your credit, you’ll have to report your income, and in some cases, give up non-essential assets.

How It Impacts a Single-Income Household

If you’re on one income and your debts are just too much, bankruptcy can bring fast relief. But it’s a big step. That’s why it’s so important to talk to a Licensed Insolvency Trustee first and weigh every option.

Alternatives to Consider First

Before you go that route, look into credit counselling, debt consolidation, or a consumer proposal. Many people discover they don’t need to file for bankruptcy after all.

Talk to a Licensed Insolvency Trustee (LIT)

Not sure what that actually means? Let’s break it down.

Why It’s Free and Confidential

A Licensed Insolvency Trustee isn’t here to sell you something. They’re federally regulated professionals who are legally required to explain all your debt solutions and help you choose what works best for your situation.

And yes, the first meeting is free and private.

How They Help You Weigh Your Options

An LIT will walk you through everything from consumer proposals to bankruptcy to payment plans. They’ll explain what each option means for your credit, your income, and your future.

You Don’t Have to Do This Alone

Living on one income is hard enough. Add debt into the mix, and it can feel like you’re stuck in quicksand. But there’s a way out and you don’t have to figure it out on your own.

There are debt solutions in Canada designed for real people in real situations, like yours. Whether you need to lower your monthly payment, stop the interest, or just breathe again, help is out there.

Book a free consultation with Farber and let’s talk about what’s next: for your budget, your peace of mind, and your financial future.