Sandy is absolutely incredible. I had the pleasure of working on a Debt Management Program with her 2.5 years ago. She taught me financial skills, budgeting, learning to work with my money, and motivated me to reach my goal. I paid off $10,000 in debt in 9 months. Today, after my 2-year mark, she wrapped up my account and helped me with credit building options for the future. So relieved, grateful and happy I had the opportunity to work with Sandy and Credit Canada.
- Kaitlyn Ouimette
Sandy Daykin Credit Counsellor Learn More →
If you're experiencing issues with your debt, this is the place you need to contact. I have nothing but great things to say about Credit Canada and specifically my Credit Counsellor, Jean Riddell. She went above and beyond helping me get my situation corrected. Thanks again Jean!
- James Steel
Jean Riddell Credit Counsellor Learn More →
Today I had my assessment with Randolph and he is going to be able to help me have a brighter financial future. Having someone like Randolph who took his time to explain everything and make sure I was able to understand it was just amazing. I would like to thank you and your team for helping me take the first step.
- Darlene Salmon
Randolph Taylor Credit Counsellor Learn More →
I would like to thank the staff at Credit Canada, especially Randolph for his patience, professionalism and for making the experience a lot less intimidating than I thought it would be. I would definitely recommend Credit Canada to anyone who has gotten themselves into an awkward financial situation and needs to know how to deal with it. Look no further.
- Gail Anne GR
Randolph Taylor Credit Counsellor Learn More →
I had tried another place before coming here and the difference in time and knowledge was like night and day. Cathy was so insightful and didn't rush me out the door, or make me feel like any question I had was dumb. She really helped direct me on the road of debt recovery and I felt empowered leaving her office. Thank you.
- Melissa DiCicco
Cathy Plowman Credit Counsellor Learn More →
For over 50 years, Credit Canada has been working hard to help people get out of debt and back to what matters most to them in their lives. We are a non-profit and have helped millions of Canadians through credit counselling, financial coaching and education. Our impact is measured, not in dollars, but in the lives we've transformed, one person at a time.
Bruce Sellery, CEO of Credit Canada
If you’d prefer to get started on consolidating your debt without the help of an expert, here are 3 simple steps you can take:
Creating a monthly budget can be one of the most important parts of your plan. This budget can help you track and control your monthly expenses so you can work towards other financial goals – such as getting out of debt!
Here's a quick list of steps for building a personal budget:
When facing financial constraints, it's essential to distinguish between essential and non-essential expenses. Prioritize by recognizing "necessary" expenses, covering basics like food, shelter, and work-related needs. Classify non-essential items or leisure activities as "unnecessary" to make informed budget cuts.
After sorting your expenses by necessity, start making cuts to unnecessary expenses. This could include doing things like skipping on buying new clothes if the old ones still fit, cutting back on costly leisure activities, quitting smoking or refraining from drinking alcohol. You may even find that you have some room in your budget for the odd luxury if you save enough.
Arrange your list of essential expenses in order of importance. Start with fundamental needs like food and shelter. If paying rent or a mortgage is challenging, communicate with your landlord or lender about possible payment solutions, particularly during economic difficulties. When it comes to food, focus on basic, affordable options like canned goods and dry pasta to minimize expenses and increase storage duration. Utilizing coupons can also extend your food budget.
Making calls to your creditors and asking for help with creating a flexible payment plan can yield surprisingly fruitful results. For any creditor that won’t (or can’t) be flexible, budget so you can at least make your monthly minimum payments.
While only making minimum monthly payments won’t get you out of debt, demonstrating that you’re actively repaying debt is imperative to salvaging your credit score and gaining traction in creditor negotiations. A Debt Consolidation Program will negotiate with creditors on your behalf and can help you significantly lower interest payments.
When creating your monthly budget, don't overlook daily expenses which can accumulate quickly. Record each purchase and recurring costs like subscriptions. Total all expenses to uncover overlooked or frequent costs. Tracking enables you to incorporate them into your budget and identify potential cutbacks. Try our free Budget Planner today!
You might already have a general financial goal in mind like “pay off my debt” or “buy a home” in mind when considering a debt consolidation service. However, there's more to financial goal-setting than that.
When you create a goal for yourself, following a specific goal-setting framework, like the SMART framework, improves your chances of achieving your goal. SMART is an acronym for:
For example, a SMART goal for debt management might look something like: I want to pay down my $30,000 debt by 33%, by the end of next year. Depending on your budget, this goal should be achievable; it's specific and measurable; it's relevant to the person, and there's a due date to help keep things on track.
Setting some short-term goals can help to keep you motivated by breaking things up into more manageable tasks that contribute towards your long-term goals. For example, taking that goal of paying off 33% of your $30,000 debt by the end of next year, you can turn that into paying $833 towards your debt each month for 12 months.
While paying down debt is a good start, it can also help to find ways to make the money that you have work for you. For example, setting aside some room in your monthly budget to invest in a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) can help you get set for retirement later on.
Money saved in an RRSP is compounded over time – making it kind of like the good twin to credit card debt. Money put into an RRSP is “pre-tax,” meaning income tax is not deducted from those earnings, and will grow tax-free until it is withdrawn. At the time of withdrawal, the money is taxed at the marginal rate–usually lower than when you earned it.
However, it's important to note that the taxes for an RRSP withdrawal are taken from that withdrawal – if you withdraw $1,000, 10% of it will be withheld for tax purposes, resulting in a payment of $900. So, if you're withdrawing to cover an emergency, it's important to take this into account.
Canadians who want to save money to cover a big emergency but are on a low income should consider a TFSA, as there are no penalties or additional taxes to withdraw from these tax-sheltered accounts.
