Well, you can do so, but there will be some possible thing happen.

1. Your contractor will take away your deposit without doing anything, and case close.
2. Your contractor will claim extra from you for some work done, if u pay, case close, if not, he may sue you.
3. Talk to the contractor, if both side are agree to stop, then settle everything and close case,
4. If he not agree to stop, then just tell him to finish what ever in progress, and the job haven start then let it stop and settle what ever he had done to close the case.
5. cant agree to stop, u guy just sue each other, and renovation work must be pending while case are sueing.

Then you try to talk to your contractor, since no deposit given and no work are doing, the contract is still consider not valid coz no party carry thier responsible, so the contracor also cant sue u on this. And i guess when you tell your contractor u have financial problem, i guess they are the 1st one wish to pull out, not u ^^