READ OUR REVIEWS

Debt advisors in Canada – what can they help with?

Posted on 17 January 2022

Written by Jeff Adiken

If you are struggling with overwhelming debt, bills that are growing out of control, and loans you know you simply cannot repay, you are probably searching for debt advisors in Canada. Whether you are struggling with tax debt, credit card debt, or escalating payday loans, there are plenty of debt relief solutions out there. No matter how bad your financial circumstances, there is always a way forward – you just need the right support. At Spergel, our Licensed Insolvency Trustees are legally able to file all forms of debt relief, and we have been helping Canadians gain debt relief for over thirty years. Our expert debt advisors in Canada will help you to find the most appropriate form of debt relief for your unique situation and allow you to enjoy life again, free from debt.

Debt relief options in Canada

When you meet with debt advisors in Canada, they will review your financial circumstances and direct you to some available debt relief options. Each of the debt relief solutions out there are applicable to different scenarios, and varying levels of debt. Each also has its own advantages and disadvantages, so it is important to understand each solution before you proceed. Debt advisors can assist you with this. Here are the most common forms of debt relief in Canada:

Credit counselling

Credit counselling is specialist support offered by either a non-profit credit counsellor or a Licensed Insolvency Trustee, although credit counsellors can be a little more restricted in the advice they can provide. During credit counselling sessions, you will discuss your financial situation with debt advisors in Canada, and they will explore your debt relief options with you. They will work with you to prepare a debt repayment plan for you over a period of time, depending on the amount of debt you may have. They can also prepare a debt management plan to help you get your finances back on track. You will then make one simple monthly payment to your credit counsellor towards your debt. It can also reduce the interest rates on your debts in some scenarios. It is a helpful first step when you are struggling with debts and bills and do not know what to do next. Debt advisors may also recommend you take on another form of debt relief if needed.

Debt consolidation loan

A debt consolidation loan is a new loan that is taken out to condense a number of other existing debts into a single monthly payment. It simplifies your debts into one, and in many cases also means a significant reduction in your interest rate too. Debt repayment can be spread across a longer period of time to make your monthly payments more affordable. It is perfect for types of debt like credit card debt, tackling them all in one go. In order to take out a debt consolidation loan, you need to have a reliable source of income, and be able to make all of the monthly payments that you agree to make. The only downside is that your debt will still exist, without any reduction on the principal. Debt advisors in Canada can recommend an appropriate debt consolidation loan for you.

Debt settlement

A debt settlement is the process of negotiating with your creditors. It is an informal arrangement that is made in order to ensure you repay the debt that you owe. Many debt settlements work by offering creditors a lump sum or making an agreement on a repayment plan that will eventually clear your debt. In most scenarios, the repayment will be less than the total owed. A debt settlement can be carried out yourself or, better, by debt advisors in Canada, a debt settlement company, a credit counselling agency, or a Licensed Insolvency Trustee. The only downside of debt settlement is that as it is informal, there is no guarantee on your agreement, and there may be additional fees. It could also mean you need to go on and file another form of debt relief like a consumer proposal anyway.

Consumer proposal

A consumer proposal is a legal form of debt settlement, regulated by the Canadian goverment’s Bankruptcy and Insolvency Act. It is a negotiation made with your creditors on your behalf by a Licensed Insolvency Trustee to gain relief from debt payments. A popular bankruptcy alternative, consumer proposals can reduce your debt by up to 80%. Other advantages of consumer proposals include the ability to keep your assets and to generate a stay of proceedings, whereby creditors and collection agencies can no longer contact you. During a consumer proposal, you will agree a reasonable amount to pay to your creditors each month, with agreed clearance of any remaining debt. At Spergel, we have an impressive acceptance rate of 99% on any consumer proposals we file.

Bankruptcy

In Canada, bankruptcy is the legal process of clearing overwhelming debt with the support of a Licensed Insolvency Trustee. You will assign any non-exempt assets you have to your trustee in exchange for clearance of your remaining debts. As well as allowing you to begin a fresh financial future, another advantage of bankruptcy includes generating a stay of proceedings to protect you from creditors and collection calls. Although many individuals think bankruptcy means you will be left with nothing, this is not the case. Each province allows you to keep a number essential items, sometimes including your home and car. A reputable Licensed Insolvency Trustee will help you through the entire process and answer any questions you might have.

Government debt relief programs

When it comes to debt advisors in Canada, one thing to be wary of is advertised government debt relief programs. You may well see these on websites and hear agencies trying to point you in the direction of these programs and free government grants. Unfortunately, the only Canadian government debt relief programs are bankruptcy and consumer proposals. You should therefore be extremely cautious of any companies contacting you and asking for money in exchange for debt relief. Instead, you should always reach out to a Licensed Insolvency Trustee to support you in beginning a fresh financial future.

How to find debt advisors in Canada

You should look for debt advisors in Canada that are professionals also known as Licensed Insolvency Trustees. They are the only professionals in Canada legally able to file all forms of debt relief, including consumer proposals and bankruptcy. They can help you to clear credit card debt, tax debt, student loan debt, outstanding bills, and car loan shortfalls. The sooner you reach out, the sooner you can begin your journey to a life free from debt. Signs that you may need the help of a bankruptcy trustee include having a greater outcome than you are bringing in, relying on credit cards, and living paycheque to paycheque. If you are unsure, check out our guide to the warning signs of debt.

If you need support from debt advisors in Canada, book a free consultation with Spergel today. No matter what your circumstances, our Licensed Insolvency Trustees will run you through the advantages and disadvantages of all forms of debt relief. We have helped over 100,000 Canadians gain debt relief, and we are here to help you too.

Jeff Adiken

Jeff Adiken

Jeff Adiken is a Certified General Accountant and Chartered Insolvency and Restructuring Professional with over 18 years’ experience as an LIT (Licensed Insolvency Trustee). He also manages all of Spergel's personal insolvency offices and is our resident expert on credit card debt and debt-free living. When his 'manager hat' comes off at the end of the day, Jeff is happiest spending quality time with his family at home.

Schedule a Free Consultation with Jeff Adiken (or your local Spergel LIT) by:

Phone 1-877-501-4321 (toll-free)

24/7 live chat (with a human) on our website

Facebook messenger

Email (hello@spergel.ca)

Online booking calendar

Be Debt Free. You Owe It to Yourself.

You may be interested in:

Helpful starting information:

What to Bring to an Appointment

To get the debt help that you need, please bring a list of who you owe and how much to each, a list of everything you own and your monthly household budget. Don’t have everything right away? Don’t worry – We will guide you through each step.

Download Form

Your Information

We’ll walk you through our application process. But, if you want to prepare for your debt free assessment consultation in advance, download our information form and fill in what you can.

Download Form

Calculate Your Debt Repayment Options

How can you compare your debt repayment options if you don’t know how much they will cost you? Your solution will become much clearer when you are able to compare costs.

Debt Calculator

Ready to Be Debt-Free?

If you’re ready to be debt free, it’s time to meet with one of our knowledgeable Licensed Insolvency Trustees at your convenience and get started

Meet with a trustee