Free consultation remotely (by phone or video) or in person. — Book an appointment

Real-life story – Income Loss

With a good salary and overtime, Martin’s lifestyle was very comfortable until his employer revised his overtime policy.

Initial Situation

Martin has a good job in aeronautics, earning $60,000 a year plus an average of $15,000 in overtime pay for the last three years. Unfortunately, due to a downturn in Martin’s industry, his employer reviewed the company’s overtime policy. This past year, Martin only earned $3,000 in overtime.


Regrettably, Martin was relying on his overtime pay to support his lifestyle. He accumulated up to $20,000 in credit card debt on top of a car loan that he is now struggling to pay back. With his salary alone, Martin’s debt ratio was over 40%.

Proposed Solution

Martin couldn’t consolidate his debts because of his debt ratio in excess of his bank’s standards, so we suggested that he file a consumer proposal. Payments would be $450 a month for 60 months, which is much lower that the $850 a month he would have to pay if he had obtained a consolidation loan. The consumer proposal will affect his credit rating but the objective is always to regain control over your personal finances. Without a balanced budget, credit ratings are of no help.


Never consider overtime as regular and guaranteed income. Now, Martin uses his overtime hours as a bonus that he saves up for personal projects. This allowed him to complete his proposal in less time and paid cash for an all-inclusive trip – a great way to celebrate getting out of debt!

**The names have been changed to protect their identity.**