How to Get Out of Debt With Bad Credit. If your credit is battered or bruised, help is available without the need for paying high interest rates for a\u00a0bad credit loan.\u00a0Experienced credit & debt counsellors can show you\u00a0how to get out of debt\u00a0for good\u00a0even with bad credit.Getting Out of Debt with Bad Credit Starts with Understanding What Caused the Problem When you have bad credit, you can become debt free and\u00a0rebuild your credit score\u00a0without resorting to a\u00a0high interest bad credit debt consolidation loan.Simply consolidating your debts into one monthly payment doesn\u2019t fix the real reason we got into debt in the first place. If you consolidate debt without looking at your bigger picture, you may find yourself even further in debt a year or two from now. First, it is important to recognize that your bad credit and debt isn\u2019t the problem. In fact,\u00a0your debt is just a symptom of the problem.\u00a0 Debt and bad credit scores stem from something bigger, something deeper. Sometimes they are a result of a job loss or illness, causing you to use credit or not be able to pay your bills on time. Other times debt comes from not knowing where we stand with our money, and extending ourselves too far. Ask yourself,\u00a0why\u00a0are you really in debt?3-Step Process to Get Out of Debt With Bad Credit In Canada If you live in Canada, have\u00a0bad credit\u00a0and are ready to\u00a0get out of debt\u00a0once and for all, here are the best things you can do: Know your debt starting point with a free credit report. Find out how much you can truly afford to put towards debt with a personal budget plan. Learn your debt options and solutions so you can make an educated decision and choose what\u2019s best for you and your family. Get Your Free Credit Report Check Your Credit History and Find Out What You Owe The first step to getting debt relief is to\u00a0get a free credit report\u00a0so you can check over your\u00a0credit history\u00a0and who you owe money to. You can order your own credit report once a year for free. We also recommend that you get your credit report from both credit bureaus in Canada because the information on each report may be different. Once you have your credit report, read it over and check for any mistakes with your\u00a0credit history. Write down a master list of who you owe money to and how much. If the amount seems incorrect, call the creditor to inquire how much you currently owe.Create a Personal Budget Plan to Get Out of Debt Now that you have created a list of who you owe money to and how much, it\u2019s time\u00a0to get out of debt\u00a0by creating a\u00a0personal budget plan. The goal is to figure out how much you can truly afford to put towards your debt each month without ever re-borrowing in the future. Use our\u00a0free, interactive budget calculator spreadsheet\u00a0to write down your monthly take-home income and expenses. Leave the debt payments out of the budget until the very end, so you can see how much you truly have left over each month to pay off debt.Explore Debt Help Options and Solutions to See If One Easy Payment Will Work for You To find out which debt solution is right for you, you will need to understand\u00a0the different debt help options that are out there. You must also figure out how much money is left over in your budget, after you\u2019ve written down your income and expenses. This shows how much you can truly afford to put towards debt without re-borrowing. There are many ways to get one easy payment to pay off debt, even with a low credit score:The Typical High Interest Loan for People With Bad Credit You can stop your Google searches here. Unfortunately there are no \u201cloans for bad credit\u201d or \u201cshort term loans for bad credit\u201d in Canada without high interest rates. High interest loans are one way for people with bad credit to consolidate debts into one monthly payment, but you risk staying in debt for years longer than necessary. A good portion of your payments will go towards interest, and not towards actually paying down your debt. Instead, consider other ways to pay off your debt with one simple payment each month.Get Debt Relief and Rebuild Your Credit Rating with a Debt Management Program Debt Management Programs\u00a0with a non-profit credit counselling organization will help rebuild your credit and give you that sense of debt relief you are aching for. They consolidate your debts into one monthly payment, which allows you to pay back 100% of your debt without all that interest. By paying back what you owe through a debt repayment program, your credit score will rebuild faster because of the special arrangement that the Credit Counselling Society has with the two credit bureaus in Canada, Equifax and TransUnion. When comparing to a high interest consolidation loan, a Debt Management Program means that you don\u2019t have to borrow more money to get out of debt. Not only do you become debt free faster, but you will rebuild your credit faster as well!\u00a0Consumer Proposals and Bankruptcy \u2013 Can Your Credit Recover? Filing a\u00a0consumer proposal\u00a0or declaring\u00a0bankruptcy\u00a0are legal ways in which some people can consolidate payments and repay a portion, or none of their debt. Often these options have people debt-free faster than handling debt on their own or with a costly personal loan, but they can prevent them from fixing their credit for a long period of time. Information from your consumer proposal or bankruptcy is not removed from your credit report for years after completion.Let the Credit Counselling Society Help You Fix Bad Credit and Get Out of Debt Without a New Bad Credit Loan If you\u2019re unsure which debt repayment solution is right for you, but you know you shouldn\u2019t apply for another high interest, bad credit loan, let the Credit Counselling Society help you consider your options. It is possible to\u00a0get out of debt\u00a0and\u00a0fix your bad credit\u00a0in a way that works for you. Contact us by\u00a0telephone,\u00a0email, or\u00a0anonymous online chat\u00a0to set up an appointment with one of our accredited credit counsellors who will review your debt repayment options with you in a personalized way, for free! Bad credit happens to good people, we know that. Remember that you are not alone and you are not stuck with your debt forever. There is always a way out, even if your credit is bad. We\u2019re here to help, just ask!