Debt Relief in Canada

Debt Relief Canada & Debt Elimination Solutions

Options, Services & Programs in Canada

Credit card debt reduction and how to get out of debt: Settling what you owe, debt management, debt forgiveness letter, debt consolidation load, consumer proposal, and more.

Do you want debt relief in Canada and solutions that work? Some ads make it sound easy, but finding the right solution is a process – and we can help. In Canada there are many options to deal with debt.

It can be hard to choose from the wide selection of debt relief services and solutions to find the one that’s right one for you.

You may have questions like: Which debt settlement companies can I trust? What is the best debt relief program for me? What is a licensed insolvency trustee? It’s important to do your research, find online reviews or ask a trusted non-profit credit counselling organization for help.

Government Debt Relief Programs

Designed to help individuals and businesses who are facing problems with their outstanding debts, the government debt relief programs help you manage your finances and pay off outstanding debts. There are many different types of government debt relief programs. 

Debt Consolidation: It is the process of consolidating your debts into one big loan with a lower interest rate. Also, it simplifies the repayment process. The Canadian government offers debt consolidation loans through different institutions to help debt-ridden individuals and businesses.

Debt Settlement: It is about negotiating with creditors to reduce the amount of debt you owe them. Although the government doesn’t directly provide such programmes, it regulates the industry with provincial and consumer protection laws.

Debt Management Plan: It is offered by a non-profit credit counselling agency like ours, the Credit Counseling Society. You work with a counsellor to negotiate with the creditor to seek favourable circumstances for loan repayment.

Consumer Proposal: This program helps you avoid bankruptcy by negotiating with creditors on different terms than the original ones.

Bankruptcy: It helps you get a fresh start when you are unable to pay off your debts. You surrender your non-exempt assets to a trustee who sells them and distributes the amount to your creditors.

Debt Forgiveness: It refers to a partial or total reduction of debts when an individual or business can not pay off their debts.

What is Debt Forgiveness?

Debt Forgiveness is a partial or complete reduction in your debts. It helps you improve your financial situation and avoid bankruptcy when you are struggling with debt. It is a complex process with certain limitations. 

It can happen with different types of loans, like credit cards, student loans, taxes, or mortgages. Debt forgiveness comes with implications, credit damage, and eligibility requirements. It works differently depending on the type of debt you have. For example, if you have credit card debt and can’t pay credit card debt, the issuer can sell the debt to a collection agency, and the agency might be interested in settling the debt at a lower amount.

With debt forgiveness, you can save money by paying a lower amount than what you were supposed to pay. It also makes getting rid of debt much faster and avoids further interest charges and fees. It helps in reducing the stress that comes with outstanding debt, and it also helps in improving your cash flow. Although, it does have a negative impact on your credit score. So, it highly depends on an individual whether it is the right approach.

Your Options for Debt Forgiveness in Canada

When you are fed up with collection calls and overbearing debt, debt forgiveness may seem like the perfect solution. There are no official government-backed debt forgiveness programmes in Canada. Although, there are two legally binding debt solutions for debt forgiveness.

The first one is bankruptcy, which is the most drastic option in Canada. It involves surrendering all your exempt assets to a Licensed Insolvency Trustee. The LIT will sell the asset and use the proceeds to pay off lenders. It has serious consequences on your credit score and borrowing credibility. The second option is the consumer proposal, which is a less severe option for debt forgiveness in Canada. It is about making an offer to your lenders to pay only a portion of the debt amount, thus forgiving the remaining debt. It entirely depends on the creditor whether it accepts the proposal or not. It prevents you from losing your assets or filing for bankruptcy. Getting debt forgiveness is not easy, but there are also alternatives to it, like debt management plans and debt consolidation loans.

Frequently Asked Questions

Does Canada have a debt forgiveness program?

There are no official government-backed debt forgiveness programs, but the Canadian government but there are two legally binding debt solutions for debt forgiveness: bankruptcy and consumer proposal.

Is debt relief Canada legitimate?

In Canada, there are two debt relief options that are legitimate. However, there is a definitive way to tell if the debt relief program is legitimate or not. A thorough research is advisable before seeking such options.

How do you qualify for debt relief?

You can submit a proposal to the creditor to request a partial or complete reduction in the debt amount. Otherwise, you can file for bankruptcy if the consumer proposal is agreed upon by the creditor.

Does debt relief destroy credit?

Debt relief does have a very negative impact on your credit, and it also hampers your ability to borrow funds in the future. You can consider alternatives like debt consolidation and debt management plans.

Do you get money back from debt relief?

You don’t get money back from debt relief unless you have overpaid the debt or qualify for debt relief. It depends on the type of debt relief you choose and the type of debt you have.

Does the Canadian government have debt relief program?

No, the Canadian government does not have any direct debt relief programs, but it does provide two through the Bankruptcy and Insolvency Act.

It Can Be Hard to Deal with Debt Stress – We Can Help

Let us help you get rid of stress and money worries in your life. If you lose sleep thinking about your debts, your credit cards are maxed or you’re not sure if you can pay all of your monthly bills, you need a solution that won’t get you deeper into debt.

Even if you’ve been declined by your bank when you tried to consolidate your loans, it is possible to get back in control of your credit cards and debts. Regardless of your situation, there is hope that you can be debt free. We are here to help.

Reasons to Make a Debt Relief Plan Today

We can help you:

  • Repay your debts with one affordable monthly payment
  • Save thousands of dollars in interest
  • Look at options to get out of debt and re-establish financial stability
  • Pay your bills and living expenses by managing your money better

Contact us now. One of our highly trained, professional Credit & Debt Counsellors would be happy to help you!

Explore Your Options to Get Out of Debt – Choose the Best One

When you start looking at what to do about your debts, it can be hard to know which option will work best. An experienced Credit Counsellor will answer your questions, explain the short and long-term consequences and give you the information you need to make a decision.

Some of the debt relief options and tips a Canadian Credit Counsellor will explain are:

  • Debt repayment and consolidation programs to make managing all of your bills and living expenses more affordable.
  • Debt management programs where your creditors help you to repay what you owe by waiving or eliminating ongoing interest and fees from things like credit cards or payday loans.
  • Assistance with your budget to help you qualify to refinance your existing loan or mortgage.
  • Legal options provided by a bankruptcy trustee when you are insolvent. These include referral to a trustee to find out about declaring bankruptcy or filing a Consumer Proposal when you can repay part of what you owe.
  • How debt settlement works in Canada, including the advantages and disadvantages. Making one large payment in exchange for the rest of your debt being written off has long term consequences that you’ll want to know about ahead of time.
  • How to research the best settlement company for you
  • Debt settlement company and find trustworthy reviews.
  • How to communicate with creditors, stop stressful collection calls and write a forgiveness of debt letter.
  • How to pay off government debt.

Talk to a Credit Counsellor About How to Get Out of Debt

Your Credit Counsellor will explain to you what you need to know so that you can start dealing with your debts right away.

Ultimately, the best option for you to choose will be the one that you can afford to follow through with, and then stay out of debt once and for all.

Find Out What Options May Be Available to You
by Answering 9 Simple Questions

Just answer these easy, multiple-choice questions to get a look at your potential options. Within a few minutes, you'll be looking at summarized options and results that apply specifically to your situation.

Discover Your Options

Self Assessment of Debt Relief Options
1. How would you describe your financial situation? Please move the slider along the scale to reflect approximately where you feel you're at.
I can cover all my expenses each month, plus have the ability to save.
 
I can cover my monthly expenses, but I need to borrow, work extra, etc.
 
I can no longer cover all my expenses every month.
 
2. Which of the following best describes you?
3. How stressed do you feel about your debt?
Not stressed
 
Somewhat stressed
 
Very stressed
 

Take the Next Step to Get Help with Your Debts

You’ve got nothing to lose and everything to gain when you contact the right debt relief organization. Last year alone, over 60,000 Canadians asked us for help. 98% of them said they would recommend our service to others. We are also the winner of the 2017 Consumer Choice Award in many cities across Canada.

Give us a call right now to find out how we can help you too. You’ll feel better knowing how to handle your situation.

Get Free, Confidential Debt Help – Talk to a Credit Counsellor Right Now

Having an appointment is free, confidential and you can talk to the Credit Counsellor in person or over the phone. You won’t be obligated to anything by speaking with your Counsellor, and they won’t judge you.

Waiting might only make it worse – Contact us now at 1-888-527-8999.

With the most trusted and highest accredited non-profit credit counselling service available in Canada, what’s holding you back? Get relief from your stress and debt today.

Find out more about the Credit Counselling Society and why people trust us to help them with their money and debt problems.

Providing Debt Relief Across Canada

Alberta | BC | Manitoba | Ontario | Quebec | Saskatchewan | Yukon | Northwest Territories | Nunavut

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