How to Get Credit Card Debt Relief in Canada
If you’ve been using your credit cards as a financial lifeline, it’s now catching up with you and you want to know how to get credit card debt relief, here are Canadian options, plans, programs, solutions, and advice – in short, straight answers.
When your credit card debt is so high that it doesn’t feel like the minimum payments actually pay anything down, taking steps to get relief from your credit card debt will ease your money worries. With the right help and advice, you should be able to put together a plan to get your finances back on track and get out of debt.
Depending on your situation, you may be able to negotiate a better interest rate for yourself, but you may also need someone to negotiate relief from credit card debt for you. Here’s how to do both.
Common Debt Relief Options for Canadians
Debt Management Program or Debt Repayment Plan
Consolidated Payment with Low or No Interest
A Debt Management Program (DMP) is when you get help from a credit counselling organization to consolidate your unsecured debts into one manageable payment. Some people also call it a debt repayment plan. This type of consolidation works with your budget so that you don’t have to borrow more money to try to get yourself out of debt.
As part of this program, a credit counsellor works with you to help you establish a realistic budget. Based on your budget, they help you figure out a realistic monthly payment that you can afford to pay on your debts.
With your permission, the credit counselling agency then approaches all your creditors and negotiates for all your debts to be included on the DMP at a payment you can afford and with all the interest rates either eliminated or substantially reduced. All of your debts are then paid off within 5 years (the average program is paid off in less than 3 years).
To find out if a DMP is right for your situation, you can make a free appointment to speak with one of our certified credit counsellors. They will put together a budget for you, assess your financial situation, and see if a DMP would be the right fit.
It’s OK to ask for help with debt
Life just happened. My debt got to the point where I started to feel like I was drowning. I didn’t feel like I could fix it on my own, and I wanted to start living my life as an adult without debt. I decided to reach out for help. Feeling relieved, I knew that everything was going to be okay – a lot of work – but okay. I had a plan to pay back my debt and continue doing the things I love to do like yoga and travelling.
Settled Debts & Credit
Settling your credit card debt will impact your credit rating more than you might think. Here’s why.
Cash advances on your credit card are extremely costly. Here’s what to do instead.
Are you curious about what credit counselling is or how it works? Here’s what you need to know.