Common Debt Relief Options in Canada

A lot of people don’t realize it, but there are many debt relief and consolidation options in Canada. They range from debt consolidation loans to Debt Management Programs to Consumer Proposals. If you’re struggling to make your monthly bill and credit card payments and really need a way to get back on your feet, there’s likely some form of debt relief or consolidation that can help you. The trick is finding the right debt relief option for your situation that will do three things:

Resolve your current financial problems as quickly as possible,
Fit your situation as something you can realistically afford and stick with, and
Allows you to accomplish your long-term goals.

Below is a chart that lays out many of the most common forms of debt relief available in Canada. While each option has many facets that can’t all be captured by a simple chart like this, it attempts to provide a high level overview of each option and how they all stack up when you look at different aspects of each one.

Your Next Step

As you can see, there are a lot of options, and this comparison chart only provides a general overview of each one. To get into all the details of each option and see which one might be able to help you the most, you either need to talk with a professional who offers a specific option or speak with a local, non-profit credit counsellor who is very familiar with all of them and is trained to help people find the best one for their particular situation.

If you’d like to explore all your options with one of our professionally trained and certified credit counsellors, give us a call and make an appointment. Our appointments can be over the phone or in-person – whichever is easier for you. If you’d like to quickly get an idea of what options may be available to you, respond to the questions below.

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

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?

I pay off my balances in full each month I carry a balance but my debts are in “good standing” I carry a balance and I am behind in my regular payments I am receiving collection calls, letters, or threats to repossess assets I have been sued by one or more creditors

3. How stressed do you feel about your debt?

Not stressed

Somewhat stressed

Very stressed

4. Do you have any of the following significant assets? (Check all that apply)

Vehicle(s) Property Investments

5. Do you have any of the following secured debts? (Check all that apply)

Mortgage Vehicle Loan Line of Credit (Secured) Loan (Secured)

6. Do you have any of the following unsecured debts? (Check all that apply)

Credit Card Line of Credit (Unsecured) Payday Loan Overdraft (Unsecured) Outstanding balance with a service provider (phone/internet, utilities, gyms, etc.)

7. Do you have any of the following government debts? (Check all that apply)

Canada Revenue Agency (CRA) Debt Student Loan

8. What have you done up to this point for your debt? (Check all that apply)

I have contacted a bank or credit union for help. I have contacted a financial professional. I have discussed my situation with friends or family. I'm not sure where to start. I have done some research but need help understanding things. I don’t have any income to work with.

9. What province or territory do you live in?

Calculations - Hidden from Users

General Numbers: Income: $ People in Household: Housing Expenses: $ Food Expenses: $ Transportation: $ Medical Expenses: $ Support Payments: $ Home Value: $ Mortgage Balance: $ Other Assets: $ Government Debt Amount: $ Secured Debt Amount: $ Unsecured Debt Amount: $ Debt Payments: $ Debt Payments as % of Income: %

Debt Relief Numbers: Needs Help?: Assets can pay off consumer debt?: DMP Qualifier Redline (Debt to Income Level): % (Line at 23%) Debt Amount > Min: '' (5K+ Ideal, 3K Min) Income: $ - Survival Expenses: $ Income - Survival Expenses: $ Minimum DMP Payment: $ Can afford a DMP: Qualifies for DMP: Consumer Proposal: Debt over $5,000?: Lowest CP Payment Est.: $ Enough income for CP payments? : , $ Bkrpt Exemption Amount: $ Amount over(+)/under(-) guideline: $ Over $200 above guideline?: Qualifies for CP: Insolvency Insolvent?: