Debt Consolidation Program

Are you dealing with debt and need relief? They say that a debt-free life is a stress-free life, and at Credit Canada, we believe those are words to live by. Whatever your debt problem may be, our certified Credit Counsellors will work with you to find the best debt relief solution that provides you with hope and peace of mind.

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What Is Debt Consolidation?

Consolidating your debt is the process of combining two or more debts into one. Some people choose a credit card balance transfer, a debt consolidation loan, or a home equity loan, but these often require good credit or high income, and some can actually dig you deeper into a financial hole. One option providing debt relief for Canadians that genuinely works is a Debt Consolidation Program.

What is a Debt Consolidation Program?

A Debt Consolidation Program is an arrangement made between you and your creditors through a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debt into a single, lower monthly payment. These debt payment programs lead to faster debt relief!

10 Advantages of a Debt Consolidation Program

If you choose a Debt Consolidation Program as part of your debt management plan, it takes care of your unsecured debt. This includes credit card debt, payday loans, unsecured lines of credit, and other unsecured loans. It’s a simple, straightforward solution for debt relief with big benefits, such as:

  • Avoiding insolvency, including bankruptcy or a consumer proposal, which can severely limit your financial future.
  • One lower monthly payment you can afford, and consolidated debt that can typically be paid off within 24 to 48 months. 
  • Stopping or dramatically reducing the interest rate on your unsecured debts, saving you hundreds if not thousands of dollars over time.
  • No more collection calls – you’ll no longer have to fear your phone!
  • Timely, automatic payments to creditors, with full tracking.

 

  • A certified Credit Counsellor who negotiates with your creditors on your behalf.
  • Simple, monthly fund transfers by telephone banking, debit card, or money order.
  • A set completion date (otherwise known as a light at the end of the debt tunnel!).
  • Free debt management tools and advice.
  • A secured credit card while on the Program, and an unsecured credit card once you've successfully completed the Program*.
*Some conditions may apply based on the status of your debt management program

Take command of your money through a positive attitude and powerful tools!

How to Set Up Your Debt Management Plan for Success

A Debt Consolidation Program with Credit Canada also includes having a certified Credit Counsellor on your side, who’s like a friend who just happens to be a financial expert! Together, you’ll explore your attitudes about money while you learn simple money management skills that can last a lifetime. You'll discover how to:

  1. Build a personal monthly budget and stick to it.
  2. Track and control spending.
  3. Set financial goals you can achieve.
  4. Learn how to make your money work for you.

How much money could you save in a Debt Consolidation Program versus managing debt on your own? Check out our Debt Consolidation Calculator to find out now!

Try Our Debt Calculator

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Am I Eligible for a Debt Consolidation Program?

If your monthly debt payments – not including your mortgage or rent – are higher than 20% of your income, this is a sign that you could be in financial trouble. At Credit Canada Debt Solutions, we welcome anyone in Canada who needs advice on how to best handle their money and reduce or eliminate debt to experience true debt relief.

Our clients come from all walks of life and are eligible for help, regardless of their income level or employment status. There’s no pressure or judgment and everything we do for you is confidential.

Once we understand your full financial situation, you can either enroll into a Debt Consolidation Program or we can help you explore alternative solutions, like securing a debt consolidation loan that will suit your unique financial situation, needs, hopes, and dreams. 

A debt consolidation loan is a money management tool that allows you to combine or consolidate your unsecured debt into a single loan from a single lender—helping you experience faster debt relief by gathering the combined sum of your unsecured debt into a single loan with a set interest rate.

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Debt Consolidation Program or Loan

Should you sign up for a Debt Consolidation Program, or take out a debt consolidation loan? Should you consider a consumer proposal, or just manage your debt on your own? Take our free Debt Assessment Quiz to find out. It’s just four simple questions but the results could change your financial future!

Take our Debt Assessment Quiz 

Debt Consolidation Programs Make Life Less Complicated!

Paying down debt through a Debt Consolidation Program might be something that works for you. It’s not a complicated process because you’ll have a certified Credit Counsellor handling all the details for you every step of the way. And, by only having to make one monthly payment, life gets a whole lot easier! 

And that’s not all. A Debt Consolidation Program offered through Credit Canada Debt Solutions also includes valuable financial advice and tools.

  • Need new money management skills? You’ll get them! 
  • Want to discover how to create a personal monthly budget to help you pay your bills,  track your spending, and find easy ways to save? You got it! 
  • Looking to set financial goals you can reach? We’ll get you there! 
  • Want to start building good credit? We’ll show you how!

Ready to reduce or eliminate debt? Start your journey towards debt relief today! Our Credit Counsellors will give you everything you need to set yourself up for a bright financial future.

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What Will My Life Look Like On A Debt Consolidation Program?

A Brighter Financial Future

Credit counselling through our Debt Consolidation Program brings benefits that can impact your entire life. It can help you control your debt and teach you good money management skills – like how to budget, control spending, and reach goals. You’ll also learn how to achieve long-term financial security for you and your loved ones, as well as accomplish your hopes and dreams in life, such as:

  1. Owning your own home, having nice things, and travelling to unexpected places.
  2. Putting your kids through school, and retiring in comfort. 
  3. Putting aside worry, anger, and grief about money and finally living comfortably.

A debt management plan is not just about crunching numbers. It’s about understanding why you treat money the way you do. It’s about becoming moneywise, working on your financial wellness, and using financial tools that can put you in control of your own destiny.

Hopes and Dreams Realized After Debt Consolidation

Frequently Asked Questions

What is debt consolidation?

Debt consolidation is the process of combining multiple debts into one. There are a variety of debt consolidation options.

How do I consolidate my debt?

There are a variety of debt consolidation options, including a credit card balance transfer, a debt consolidation loan, a home equity loan, or a Debt Consolidation Program (DCP). Each can be used as help paying off debt.qw

What is a Debt Consolidation Program?

A Debt Consolidation Program is an arrangement between you and your creditors facilitated by a non-profit credit counselling agency that works on your behalf. The debt consolidation services agency will negotiate with your creditors to reduce or stop the interest on your individual debts, and then roll all your debts into one lower monthly payment.

Can I enter a Debt Consolidation Program with bad credit?

Yes, you can sign up for a Debt Consolidation Program even if you have bad credit. Your credit score will not impact your ability to get debt help through a Debt Consolidation Program. Bad credit can, however, impact your ability to get a debt consolidation loan.

How long does it take to complete a Debt Consolidation Program?

Debt consolidation services and solutions vary depending on each individual’s unique financial situation. However, Debt Consolidation Programs can be completed within 2-4 years. Most clients can often complete the program and be debt-free in 3 years.

Do I have to give up my credit cards in a Debt Consolidation Program?

If you enter a Debt Consolidation Program, you will have to refrain from using credit, which includes credit cards; however, you can still use a secured credit card. Once you’ve successfully completed the program, you may be eligible for an unsecured credit card.

 

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Will creditors continue to contact me while I’m on a Debt Consolidation Program?

No. Once you’ve signed up for a Debt Consolidation Program, your Credit Counsellor will ensure that all collection calls and letters stop.

Will Debt Consolidation hurt my credit score?

Most people entering a Debt Consolidation Program already have a low credit score. While a Program could lower your credit score at first, in the long run, if you keep up with the Program and make your monthly payments on time as agreed, your credit score will eventually improve.

Does a Debt Consolidation Program cost money?

A reputable non-profit debt relief organization will charge a minimal, monthly maintenance fee that will be included in your monthly payment, which will be lower than what you’re currently paying. The money you save on a Debt Consolidation Program far outweighs these fees.

Is a Debt Consolidation Program a better option than a consumer proposal or bankruptcy?

Everyone’s financial situation is unique; however a Debt Consolidation Program will not be as harmful to your credit as with a consumer proposal, nor will it jeopardize any of your belongings as with a bankruptcy. You’ll also gain money management skills that can help you for the long-term and avoid debt in the future.

Where can I find Debt Consolidation help?

Credit Canada is a non-profit credit counselling agency with more than 50 years of experience helping Canadians find debt relief. We can help you too. Give us a call at 1.800.267.2272 to book a free counselling session with one of our certified Credit Counsellors or fill out our Debt Assessment form online to discuss your options!

Can you get out of a Debt Consolidation Program?

Anyone who signs up for a Debt Consolidation Program must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.

How to Consolidate Your Debt

Wondering how to consolidate your debt? You’re not alone! Knowing what to do next with your debt can be stressful, especially if you feel like you’re out of options. Let our debt experts help!

Get a Free Debt Assessment

Scheduling a free Debt Assessment is the first step in the debt consolidation process. Of course, we know it’s not always easy talking to a stranger about your finances, so get to know the caring Credit Counsellors at Credit Canada before you make an appointment! Like Kerri, our in-house French-speaking expert; Josie, who has over 20 years of financial experience; or Randolph, a family man with three kids, along with our other caring and qualified Counsellors. Check out this quick video to meet some of our Credit Counsellors.

Sign Up for Your Debt Assessment

Now, all you need to do is fill out the form below and one of our credit counselling experts will contact you to begin discussing your personalized debt relief options, including our Debt Consolidation Program, one of the best debt consolidation programs in the country. 

Credit Canada has over 50 years of service, and we’ve helped more than 2 million Canadians resolve over $350 million in debt. We look forward to helping you too!

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