Toronto Housing Costs and Debt Relief Options to Consider

If you live in Toronto, you don’t need the headlines to remind you how expensive housing has become. Rent is sky-high, mortgages are harder to afford, and even small apartments eat up a huge part of people’s paycheques.

When so much of your income goes to housing, there isn’t much left for groceries, bills, or paying down debt. That’s why Toronto housing costs are one of the biggest reasons families are falling behind — and why more people are now looking for debt relief options.

Toronto Housing Costs Are Pushing Budgets to the Limit

There’s an old guideline that says no more than 30% of your income should go toward housing. That basically means if you bring in $4,000 a month, about $1,200 of that should be spent on rent or a mortgage.

In Toronto, that number feels impossible. Many families are spending 31% to 50% of their income, and sometimes more. just to keep a roof over their heads.

That leaves very little for the basics, which is why so many people end up relying on credit cards or lines of credit to fill the gaps.

If you’ve been wondering whether you’re spending too much, you’re not alone. Plenty of Torontonians are asking the same questions about rent.

How High Housing Costs Lead to Problem Debt

When housing takes up so much of your budget, everything else gets squeezed. At first, it may feel manageable (like charging groceries here, covering a bill with overdraft there) but debt has a way of creeping up.

Before long, interest makes it harder to catch up, and the stress of keeping up with bills only grows.

Common Warning Signs in Toronto Households

Some of the clearest signs your debt is becoming a problem include:

• Only making the minimum payment on credit cards
• Using one credit source to cover another
• Putting off savings or retirement because there’s no money left
• Feeling anxious or guilty every time a bill arrives

When Debt Starts to Snowball

The hardest part about debt is how quickly it grows. Once interest kicks in, it can feel like you’re running as fast as you can and still not moving forward.

Add high housing costs to the mix, and it’s no wonder so many Toronto households feel like they’re drowning. That’s usually the moment when people start looking at debt relief options in Toronto that can actually turn things around.

Debt Relief Options in Toronto to Consider

There’s no single “right” answer, but there are proven ways to ease the pressure and start moving forward again.

Consumer Proposal That Toronto Residents Can File

A consumer proposal is one of the most popular debt solutions in Canada. With the help of a Licensed Insolvency Trustee (LIT), you can reduce what you owe and roll everything into one monthly payment you can actually manage.

In most cases, you get to keep your home and car. And, for many families, that’s the biggest relief.

However, if you’re a homeowner, it’s important to understand how a consumer proposal can affect mortgage renewal, since housing and debt often go hand in hand.

Credit Counselling in the GTA

When debt feels overwhelming, it’s not just about numbers on a page, it can take a real toll on your mental health too. Stress, worry, and guilt pile up quickly, and it can feel like you’re carrying it all alone. Credit counselling can help lighten that load.

A counsellor works with you to create a structured repayment plan, sometimes through a debt management program where interest is reduced or eliminated.

You’ll still pay back what you owe, but in a way that feels more realistic. Many people also explore debt consolidation at this stage, since combining multiple payments into one makes life a lot simpler.

Bankruptcy as a Last Resort

Bankruptcy is the option most people want to avoid, but sometimes it can be the best choice. It clears most unsecured debt and immediately stops collection calls, giving you the chance to reset.

The trade-off is that it impacts your credit longer than other solutions. But when housing and debt costs have gone too far, it may be the only way forward.

The key is not waiting too long — most people delay getting debt help, and waiting usually makes things harder.

Managing Debt in Toronto Without Losing Ground

Debt relief programs can take off a lot of pressure, but smaller everyday steps can help too.

Setting up automatic bill payments, cooking more meals at home, or calling your phone and internet providers to ask for lower rates can all free up extra cash. Even small changes add up when housing is already taking so much of your budget.

Building your financial knowledge also helps. A lot of people find that financial literacy books make money topics less intimidating and give them practical tools to use right away.

Why Farber Can Help if You’re Struggling with Toronto Housing Costs

Toronto is one of the hardest places in the country to balance housing costs with everything else. The stress is real, and it can take a toll.

At Farber, we’ve helped thousands of people across the GTA who were facing the same struggles: rent or mortgage eating up too much, debt piling on top, and the pressure of feeling like there’s no way out.

Our Licensed Insolvency Trustees explain every and help you choose the one that fits your situation best. Whether that’s a consumer proposal, credit counselling, debt consolidation, or bankruptcy, you don’t have to go through it alone.

Book a free consultation with Farber today.