How to Set Financial Goals in Ontario
- Bryan Litvack
- Nov 6
- 4 min read
A Practical Guide for Managing Debt and Building Stability
Why Is Setting Financial Goals Important If You’re in Debt?
When you’re struggling with credit card balances, payday loans, or mounting bills, it can feel impossible to see a way out. That’s where financial goals matter.
By setting clear objectives like reducing high-interest debt or saving a small emergency fund, you give yourself a roadmap for moving forward. For people in Ontario, this often means combining better money management with legal debt relief options.
At the Litvack Group, we are Licensed Insolvency Trustees. We help people across Ontario not only deal with overwhelming debt through federally approved programs, but also regain financial confidence through clear goal setting and education.
What Are the Benefits of Financial Planning When You’re in Debt?
Without a plan, it’s easy to get caught in the cycle of minimum payments and high-interest borrowing. Setting financial goals provides:
Clarity: You know what you’re working toward.
Structure: Each dollar has a purpose, whether it’s for bills, debt repayment, or savings.
Motivation: Small wins build confidence and reduce stress.
Protection: Planning helps you avoid missed payments and late fees.
When combined with legal options like a consumer proposal, financial planning can accelerate your path to becoming debt-free.
How SMART Goals Help You Take Control of Your Finances
The SMART framework turns vague intentions into actionable steps. SMART stands for:
Specific: State the exact debt or amount you want to tackle.
Measurable: Track progress, such as reducing $2,000 in credit card debt in six months.
Achievable: Align with your income and realistic budget.
Relevant: Focus on goals that reduce stress and improve financial health.
Time-bound: Set deadlines that create accountability.
Example: “I will reduce my credit card balance by $500 in three months by cutting restaurant spending and applying that money to debt.”
Common Financial Challenges in Ontario
Many Ontarians face similar obstacles:
High-interest credit card debt or payday loans
Stagnant or irregular income
Rising costs of rent, groceries, and transportation
No emergency savings
Stress from collection calls or wage garnishments
These challenges can feel overwhelming, but financial goals paired with legal solutions provide a structured way forward.
How to Assess Your Current Financial Position
Before you can set meaningful goals, you need a clear picture of where you stand. This means:
Listing all debts including credit cards, payday loans, tax debt, and student loans
Calculating monthly income from employment, benefits, or other sources
Subtracting essential expenses such as rent, food, utilities, transportation
Identifying gaps — are you running short each month or just breaking even?
If you find that no amount of budgeting will cover your debts, that’s a strong sign it’s time to consider a consumer proposal or bankruptcy with a Licensed Insolvency Trustee.
Legal Debt Solutions That Support Your Goals
In Ontario, only Licensed Insolvency Trustees can administer the legal options available under the Bankruptcy and Insolvency Act.
Consumer Proposal
Reduces total debt by negotiating with creditors
Stops all interest immediately
Allows you to keep assets like your car or RRSPs
Consolidates everything into one affordable monthly payment
Bankruptcy
A last-resort option when no repayment is possible
Eliminates most unsecured debts
Provides a legal “fresh start” usually within 9 to 21 months
Both solutions stop collections and wage garnishments by law, giving you space to focus on rebuilding your finances.
Building a Financial Action Plan
Once you’ve chosen a path, the next step is a clear action plan. A solid plan includes:
Budgeting strategies: Use tools like the 50/30/20 rule (needs, wants, savings/debt)
Debt prioritization: Focus on high-interest debts first
Emergency savings: Even small amounts ($20–$50 per month) build security
Regular reviews: Check progress monthly and adjust as needed
At the Litvack Group, we guide clients through this process during mandatory credit counselling sessions that accompany every consumer proposal or bankruptcy.
How Often Should You Review Your Goals?
Debt recovery is not a one-time effort. Review your goals:
Monthly to track spending and payment progress
Quarterly to adjust for income or cost-of-living changes
Annually to reassess long-term priorities like savings or retirement
Staying flexible ensures your plan works even when life changes.
Real Client Story: Turning Stress Into Structure
A single parent in Ottawa came to the Litvack Group with $32,000 in credit card and payday loan debt. They felt hopeless and avoided answering calls.
We filed a consumer proposal that reduced their debt to $12,000, payable over five years. With interest stopped and collections silenced, they were able to create a monthly budget that included $50 toward savings.
Three years later, they had not only paid down the proposal but also built an emergency fund — proving that financial goals and legal solutions work best together.
Frequently Asked Questions
Do I need to own a home to file a consumer proposal?
No. Consumer proposals are for unsecured debt and apply to renters, homeowners, or anyone in Ontario.
What’s the minimum debt required to file?
For a proposal, at least $5,000 in unsecured debt. For bankruptcy, at least $1,000.
Will I be forced into bankruptcy?
No. Bankruptcy is always a choice. Many clients qualify for proposals instead.
Can I rebuild my credit after filing?
Yes. Many people qualify for a secured credit card immediately after filing and begin rebuilding credit during the process.
Take the First Step Toward Debt Freedom
Debt can feel overwhelming, but setting goals and knowing your legal options gives you a clear path forward.
At the Litvack Group, we are Licensed Insolvency Trustees. We provide free, confidential consultations to help Ontarians understand their debt relief options and create a plan that works.
Book your free consultation today. Take the first step toward financial stability and peace of mind.
Disclaimer:
This article is intended for informational purposes only and does not constitute legal or financial advice. For personalized assistance, contact a Licensed Insolvency Trustee in your area.
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