What is a Debt Management Program (DMP)?

A Debt Management Program, or a DMP, is a program run by credit counsellors that consolidates unsecured debts into a single monthly payment. It can have the advantage of significantly reducing or eliminating interest rates on the debt. You do, however, need to repay the full amount of debt that you have over a period of time, usually up to five years. Your repayments on a Debt Management Program are made to the credit counsellor, who then distributes the payments to your creditors until the debt has been repaid in full.

How does a Debt Management Program work?

A Debt Management Program begins by meeting a credit counsellor, who will review your financial situation and establish whether you are eligible; whether your creditors will accept a DMP; and what you can afford in terms of monthly repayments. If you are eligible and agree to proceed, here is what happens typically:

• Your credit counsellor will reach out to your creditors and negotiate a settlement that both meets yours and your creditors’ needs
• Once a plan is agreed, you will make payments to your credit counsellor
• Your credit counsellor will distribute payments to your creditors each month until the balance is paid off in full
• Once your balance is paid off, you will no longer owe money to your creditors involved in the Debt Management Program

While in a Debt Management Program, you will not be able to take out any new credit cards. It might be possible to get secured credit, like a mortgage or car loan, but this ultimately depends on your credit score and eligibility. Your credit counselling agency is there to help you to budget so that you can feasibly commit to your monthly payment, without becoming reliant on credit cards. They will also help to provide education on money management and budgeting, so that your financial management stays healthier longer term. This way, you are well equipped for a future free from debt.

Who is a Debt Management Program best suited to?

Debt Management Programs are most suitable for Canadians who are keen on repaying the full amount of debt that they owe. Perhaps they are going through a period of financial difficulty, but anticipate becoming on track again when their debt is simplified and structured via a DMP. It is well suited to individuals who are trying their best to stay on top of their monthly payments, but for whom this may be becoming a struggle. DMPs are best utilized when the credit card debts owed are still with the original creditor, and have not yet been passed on to a third party debt collector or collection agency. Debt Management Programs will only work if you are able to sustain your monthly payments. While DMPs can reduce and even sometimes eliminate interest rates on your debt, they cannot reduce the principal of the debt you owe – you will still need to pay back something each month in order to gain debt relief. DMPs are typically best for Canadians who owe at least $10,000. In order to be eligible for a Debt Management Program, you need to have a steady source of income in order to make your monthly payments.

What are the advantages of a Debt Management Program?

A Debt Management Program has a number of benefits:

• It simplifies your debt payments into one
• It can reduce your interest – you may be able to negotiate a reduction in interest rate with your creditors
• Monthly payments are typically reduced by up to 30-50%
• A pathway to debt freedom – your debt will be structured to help you stay on track for repayment
• Financial support – when you are struggling, a credit counsellor can support you with advice and tips throughout your Debt Management Program
• You will repay all your debt, which can create a sense of accomplishment
• It can be used for high amounts of debt, even beyond $100,000
• It will have less of an impact on your credit score than other debt relief options including bankruptcy

What are the disadvantages of a Debt Management Program?

As with all forms of debt relief, there are some disadvantages of a Debt Management Program:

• Your credit cards will be frozen when you enrol, and you will not be able to open any new ones
• A DMP can take longer and cost more overall than other debt relief solutions like a consumer proposal that substantially reduces your debt
• A DMP will have a negative impact on your credit report
• You may have difficulty gaining credit after completing a DMP, although at Spergel we can help you to rebuild your credit score

Which debts can be included in a Debt Management Program?

Debt Management Programs are most often used to provide relief from the high interest rates associated with credit card debt. There are some other unsecured debts that you may be able to include for consolidations, provided your creditor agrees to accept payments via your DMP:

• Instore credit lines
• Unsecured personal loans
• Lines of credit
• Debt consolidation loans
• Debts in collections

It is worth noting that secured debts cannot be included as they are associated with collateral. This includes mortgage, home equity loans, home equity lines of credit (HELOCs), car loans, and also student loans if you stopped your studies less than seven years ago.

How much does a Debt Management Program cost?

The idea of a Debt Management Program is certainly not to cost you more on top of the debt you have already accumulated, but there are some associated fees. These include:

• Interest rates associated with the credit card debts you enrol. In some cases, your creditors will reduce or even eliminate the interest rates on your debt completely. Generally speaking, the interest rate will be 0-5% on your debt, all of which will go towards your creditors.
• Credit counselling agency fees for the setup and administration of your DMP. If you choose to enrol on a DMP with a nonprofit credit counselling agency, they will try to keep their fees as low as possible. That said, there is still an associated fee due to the cost of administrating your program. This is often a one-off setup fee, and a monthly administrative fee. All fees are included as part of the DMP so that payments are kept as manageable as possible. Not all credit counselling agencies are nonprofit, so you should be sure to check before you enrol.

Can you leave a Debt Management Program?

Enrolling in a Debt Management Program is at your discretion. If your circumstances change, you may wish to drop out of it. If, for instance, you are struggling to keep up with the monthly payments and decide you want to file a consumer proposal or bankruptcy instead, you can do so. Equally, your financial situation may improve – in this case, you might be able to afford to pay off your debts without the need for a Debt Management Program. If you drop out of a Debt Management Program, your creditors will usually restore the original higher interest rates associated with your debt, along with any associated fees that may have existed on your account.

How does a DMP affect my credit score?

Given that a DMP shows you need support in structuring and repaying your debt, it will have a negative impact on your credit score. Debts enrolled in a Debt Management Program will have a R7 rating on your credit report. This notation will remain on your credit report for two years after you leave the program, and will reflect that you were not able to repay a debt via a standard repayment schedule.

How long does a DMP last?

A Debt Management Program can only last up to a maximum of 60 payments – which means you should be debt free within five years. That said, many DMPs finish sooner – three years is the typical length. Of course, depending on your budget you may be able to increase your monthly payments and finish your program sooner. Your credit counsellor will advise you as to how long your program should take.

What is the difference between a Debt Management Program and a consumer proposal?

You may have heard of a consumer proposal, and might be trying to decipher the difference between a Debt Management Program vs consumer proposal. A consumer proposal is a legal form of debt settlement in Canada in line with the Bankruptcy and Insolvency Act which can reduce your debt by up to 80%. It is the process of suggesting an affordable amount to repay your creditors each month. Your Licensed Insolvency Trustee will then negotiate with your creditors on your behalf. If accepted, you are only obligated to make your monthly payment for a period of up to five years. At Spergel, we have a 99% acceptance rate on any consumer proposals we file, which means you have a 99% chance of having your debt significantly reduced. A consumer proposal is a good option when a Debt Management Program does not fit your budget and you need your debt to be reduced substantially. While both forms of debt relief reduce interest and simplify payments, the primary difference is that a consumer proposal is the best option when a Debt Management Program is not the appropriate choice. This is because:

• A consumer proposal is a legal process – once agreed by your creditors, it is then approved by the court
• A consumer proposal can reduce the principal of your debt. While a Debt Management Program requires that outstanding debt is repaid in full, a consumer proposal can be negotiated and often leads to a reduction in debt by up to 80%
• A consumer proposal offers protection from your creditors via a stay of proceedings. Creditors and collection agencies may no longer contact you, and any legal action including wage garnishments and bank account freezes are stopped

If you are facing overwhelming debts and are struggling to make your monthly payments, a Debt Management Program may work if you think you can eventually pay off your debts in full. It can help to structure your debt, simplify your payments, and reduce your interest. If, on the other hand, you feel your debt needs a major reduction, a consumer proposal may be more appropriate in providing the fresh financial future you need. Your best option if you are unsure is to speak to an experienced Licensed Insolvency Trustee. At Spergel, we will review your financial circumstances and advise you as to your best options for debt relief.

If you would like to learn more about taking on a Debt Management Program, book a free consultation with an expert Licensed Insolvency Trustee at Spergel. We will review your financial circumstances and help you to understand your available options, from a Debt Management Program through to a legal form of debt relief like a consumer proposal or bankruptcy. Reach out today – you owe it to yourself.

What is a collections agency?

When you are overdue on debts and miss your payments, you will receive communication from your creditors. Typically, this is the first stage of debt collection. Following this, if your creditor does not receive payment or sufficient communications from you, most companies will utilize their internal debt collection teams or hire an external collection agency or debt collector. Some creditors will choose to sell the debt to these companies; others will assign them with the task of collection. Their role is simply to take whichever measures they can legally to collect the debt they are owed. When contacting you, debt collectors and collection agencies must adhere to federal rules on debt collection. If the debt collectors are not regulated federally, they will need to follow provincial rules. No matter who you owe debt to, you will always be protected by either federal or provincial law that will determine how they can contact and communicate with you.

How to handle a collections agency

While there may be laws in place to prevent debt collectors or collection agencies from intimidating or harassing you, this kind of behaviour can still occur. After all, their main motive is reclaiming the money they are owed. By understanding the law around debt collection, it can be empowering for you to know what debt collectors can and cannot do. It will also make it easier when it comes to how to make a settlement with a collections agency. Here are a few tips for handling debt collectors:

• Know what to do when debt collectors call. Collection agencies cannot simply call you whenever they like. Are they allowed to be calling you at this stage? Debt collectors in nearly all Canadian provinces must first allow you to confirm that the debt is yours. Often, this is done by formally notifying you via mail or email that you owe the debt. At this point, you should check and ensure the information is accurate, and that you actually owe the debt.
• Check the statute of limitations on the debt. In Canada, there are laws that prevent a creditor from taking legal action against you once a certain time period has passed. After this point, wage garnishments cannot be pursued. The statute of limitations differs slightly by province, and although creditors cannot take legal action, they may still try their luck and continue to contact you to collect the debt. Should you acknowledge the debt or make a payment, the statute of limitations will reset.
• Know your rights. As a debtor, you have various rights. Firstly, you have a right to confirm a debt collector’s identity. You also have the right to be spoken to respectfully, and not harassed. For instance, they cannot call you non-stop, and must call within certain hours and not on holidays. You have a right to report them if they try to lie to you or manipulate you. You can contact the Consumer Affairs office in your province if you do not feel these rights are being respected.
• Learn what to say to a debt collector. Speaking to collection agencies can be a bit of a skill. They will ask you what appear to be harmless questions, but you will want to limit the amount of information you offer up. Giving too much detail about your circumstances can empower collectors to make assumptions about your spending, sometimes making them less open to negotiation. Avoid confirming any information they may think they know about you also.

How to make a settlement with a collections agency

Having an account in collections can remain on your credit report for a number of years, having a negative impact on your credit score too. For this reason, it is important to get it sorted as quickly as you can. Some debt collectors and collection agencies may be willing to negotiate to accept a smaller amount than the debt you owe. They might wish to accept a partial payment over going through an extended collection process. Collection agencies deal in quantity, and so for many it is better to settle multiple debts at a reduced figure than let one account simply drag on. You should only ever agree to something you can afford, so make sure you budget before entering negotiations with a collection agency. Although a negotiation with a debt collector is never guaranteed, here are some tips on how to make a settlement with a collections agency:

• Suggest a partial repayment. You should begin your negotiations with a debt collector low, as they will likely try to adjust it. Make it clear that you are unable to pay the full amount. Try offering 30% of your total debt – although optimistic, you have plenty of room for counter offers depending on their reaction. While many collection agencies will want to collect the full amount of their debt, some will be willing to reduce it slightly in line with your proposal.
• Request a payment plan. You may wish to spend some time pulling together a budget. You can figure out what you think you can afford to pay off your debts each month, and propose this to your debt collector. If you had been struggling making your full debt payments each month, you may be able to negotiate a reduced monthly payment with your collection agency, or to pay it back over a longer period of time.
• Get your agreement in writing. Before you fulfil the terms of any payment agreement you may be able to negotiate with your collection agency, you must ensure you get any settlement terms in writing. Sometimes, paid debts can resurface with other collection agencies trying to collect. If you have written documentation in place that you have settled a debt, it can save any potential headaches. Once you reach a deal, ensure that upon payment your debt is cleared and you will be left alone.

If you are unsure on how to make a settlement with a collections agency or feel uncomfortable negotiating yourself, speak to a reputable Licensed Insolvency Trustee. Licensed Insolvency Trustees are the only professionals legally able to file all forms of debt relief in Canada, making them a great port of call if you are struggling to repay your debts. They will review your financial circumstances and recommend an appropriate form of debt relief for you. Popular forms of legal debt relief in Canada include filing a consumer proposal or bankruptcy. Consumer proposals are a bankruptcy alternative that can reduce your debt by up to 80% while enabling you to keep your assets. Bankruptcy is for those in need of a fresh financial future, who wish to have all of their unsecured debts cleared. Both these forms of debt relief trigger a stay of proceedings, which offers you full protection from your creditors and collection agencies. Licensed Insolvency Trustees can negotiate with your creditors on your behalf, as well as offering advice on topics like money management and credit counselling.

If you want to learn more about how to make a settlement with a collections agency, book a free consultation with an expert Licensed Insolvency Trustee at Spergel. Our team of financial professionals have helped over 100,000 Canadians on their journey to debt relief. We will review your financial circumstances and recommend the best course of action for you. Reach out today – you owe it to yourself.

What is a debt management plan?

A debt management plan is an assisted repayment plan, often organized by a credit counselling agency. Debt management plans are usually used for repaying credit card debt and overdue bills. Once you enrol in a debt management plan, a credit counsellor will review your financial circumstances and assess your budget. They will then draft a monthly payment plan for you to catch up on any missed payments to help you repay your debts. Credit counselling agencies can also help you to negotiate to reduce down the interest rate on your debt, although they will never be able to reduce your debt. One of the key disadvantages of a debt management plan is that you will still need to repay all of your debt. Debt management plans are often confused with debt consolidation loans. Debt consolidation loans, in comparison, are new loans taken out with the intention of condensing multiple separate loans into one, often leading to a reduction in interest rate. In debt management plans, you make a single payment each month to the credit counselling agency who then distribute the payments to your various creditors until your debts are paid off in full.

What is debt settlement?

When it comes to debt management vs debt settlement, the two forms of debt relief are very different. Debt settlement generally means that you do not need to pay off all of your debt, and that instead you negotiate a reduction in the amount you owe. Debt settlements typically mean your monthly payments are much lower than those in a debt management plan. In Canada, there are two ways you can go about getting a debt settlement:

• Via a for-profit debt settlement agency. Generally speaking, we advise against these. For-profit debt settlement agencies have a poor success rate, and most of their clients will pay fees without even settling with their creditors. Fees can rack up into the thousands on top of the debt settlement agreement you need to repay. Often, clients need to be referred to a Licensed Insolvency Trustee even after shelling out for for-profit support.
• File a consumer proposal. Consumer proposals are a legal form of debt settlement. Filed by a Licensed Insolvency Trustee, a consumer proposal is the process of formally negotiating the amount of debt you repay with your creditors. Typically, it can reduce your unsecured debt by up to 80%. Consumer proposals are ideal for Canadians with a fair amount of unsecured debt, an income, and assets they do not wish to lose. It is a great bankruptcy alternative and a popular option for reducing debts including tax debt, student loan debt, and payday loans.

Debt management vs debt settlement – what are the differences?

While both forms of debt relief enable you to avoid bankruptcy, each has a different outcome.

Goals

Debt management plans are most useful for organizing repayments for individuals who can afford to make their debt repayments, but who perhaps need support in simplifying them into a single monthly payment. Debt settlement, on the other hand, attempts to gain a reduction in your debt because you cannot afford to make the full repayment.

Cost

Debt management plans are more expensive. Unlike debt settlements, you need to repay the full amount of your debt, as well as a fee to the credit counselling agency which is typically around 10%. Debt settlements, on the other hand, mean that you pay a reduced amount of the debt you owe, even as low as 20% of the total amount. You do not pay any fees for working with a Licensed Insolvency Trustee.

Debts handled

Both forms of debt relief handle unsecured debt, although Licensed Insolvency Trustees are able to settle a wider range of debts than those going through a debt management plan. If you owe multiple debts to different creditors, you should note that debt management plans are only voluntary – creditors are not obliged to comply with them. This is a key consideration if you owe debts like tax debt or payday loans, where creditors may not participate.

Credit report

Both debt settlements and debt management plans have a similar impact on your credit report. Whichever option you choose, a note will be added to the public records section of your credit report with a R7 rating. Both consumer proposals and debt management plans have slightly different impacts on your credit report, but generally speaking, both will be removed from your credit report around two to three years after the date of completion, or six years since you first filed – whichever is sooner.

Advantages of debt management plans

There are a number of benefits of a debt management plan, which are very similar to those of a debt settlement:

• A credit counsellor provides solutions when you are struggling to repay your debts alone
• You can make one monthly payment, simplifying your debt repayment
• You are protected from your creditors participating in the program, ending their collection calls
• Any debts enrolled in your debt management plan will be cleared when the plan is complete
• You will receive ongoing credit counselling and money management advice

Disadvantages of debt management plans

A debt management plan will not work for everyone. As with every form of debt relief, there are some disadvantages of a debt management plan over debt settlement:

• You need to repay the full amount of debt owed
• Your creditors are not obliged to participate in a debt management plan
• You may still be in collection if a creditor chooses not to participate, or if you leave out a debt
• Payments can still be expensive because you need to repay your full debt, as well as a fee

Advantages of debt settlement

Much like debt management plans, debt settlements share similar advantages:

• Licensed Insolvency Trustees will provide debt relief solutions when you are struggling to make your debt repayments
• You are able to reduce your debts by up to 80%
• A Licensed Insolvency Trustee negotiates with your creditors on your behalf
• Your payments are simplified into one affordable monthly payment
• A stay of proceedings offers full protection from your creditors
• You will be cleared of your debts when your debt settlement program ends
• You will receive ongoing advice and support from a Licensed Insolvency Trustee, a qualified expert and the only professionals in Canada legally able to file all forms of debt relief

Disadvantages of debt settlement

While a consumer proposal can enable you to reduce your debts and avoid bankruptcy, it is not the debt relief option for everyone:

• You have to include all your unsecured debts into a consumer proposal; no creditors can be left out
• You need to surrender your credit cards, although you may be eligible for a secured credit card after beginning your consumer proposal
• You need to be insolvent to file, without sufficient assets to refinance

Ultimately, both debt management plans and debt settlement filed through a Licensed Insolvency Trustee can help you to sort your debt. If you have the income to repay your debts, a debt management plan may be the best option for you. On the other hand, if you need debt relief because you are struggling to make your repayments, a consumer proposal may be more appropriate for your circumstances. Your first port of call should be speaking with a reputable Licensed Insolvency Trustee about how you can begin a fresh financial future.

\If you want to learn more about debt management vs debt settlement, book a free consultation with an experienced Licensed Insolvency Trustee at Spergel. Our team have been helping Canadians begin fresh financial futures for over thirty years, and we are here to support you too. We will review your financial circumstances and recommend the best pathway for you. Reach out today – you owe it to yourself.

What is debt settlement?

Debt settlement is essentially the concept of negotiating with credit card companies to pay them less than what is owed. Debt settlement means that creditors will get less than the original amount of debt you owe. The goal of debt settlement is a reduction in your debt. Debt settlement can be carried out in a way that is legally binding when you file a consumer proposal. Consumer proposals can reduce your debt by up to 80%, although they must be filed by a Licensed Insolvency Trustee, the only professionals in Canada legally able to file all forms of debt relief. It is also possible to try and negotiate credit card debt settlement yourself. In this article, we will explore the pros and cons of professional debt settlement and settling debt independently.

How to negotiate credit card debt settlement yourself in Canada

When you choose to negotiate credit card debt settlement yourself in Canada, it can be quite empowering. It can save you time and money in doing so, although it does take some additional preparation and research. By negotiating credit card debt yourself, you can potentially reduce your interest rate, and lower the overall amount of debt you have. It could also allow you to improve your credit score in the long term. Although the idea of negotiating credit card debt settlement yourself can seem a little intimidating, creditors would rather receive something than nothing. Provided you go to your lenders with a reasonable figure, they are more likely to agree to your proposal, and even more so if you can offer a lump sum payment. While not everyone who attempts to negotiate credit card debt settlement is successful, by knowing your rights and researching a plan, you may be able to persuade them on your own. Here are some tips to negotiating a debt settlement on your own.

Establish your goals

Before you enter credit card debt settlement negotiation, you must know exactly what you want to get out of the conversation. Often, there is no set conclusion from the call, so you need to steer the call as best as you can and know the outcomes you want. Your goals will differ depending on your credit card debt. Perhaps you want to lower your interest rate, remove penalty fees, change your payment schedule, or even start afresh.

Create a budget

The first step is to create a budget so that you can accurately determine what you can reasonably afford to pay towards your debts. It is a good idea to create a spreadsheet to capture all of this information, listing all of your income and expenses. This will help you to establish whether or not you have enough money to put together a lump sum offer to your creditors when negotiating.

Share the story around your financial circumstances

In order to gain the empathy of your creditors, you may wish to share a story on your financial circumstances, and the reason why you have come into debt, or found yourself behind when making payments. It could be a good idea to provide copies of any bills or statements that support your story, so that you can share them with your creditor when you need to.

Research your rights

Before you enter negotiations with your creditors, you will want to carefully research your rights and learn exactly what debt collectors can and cannot say to you. Debt collectors could try to use tactics and strategies to intimidate you, so you need to be prepared for situations like this. Make sure you study the regulations that the collection agencies need to adhere to. Learn more about what to say to collection agencies. Do not be afraid to end the conversation and hang up if the call becomes nasty or threatening.

Ensure you are speaking to someone in a position of power

Ensure you are speaking to someone with power before negotiating a debt settlement. You do not want to waste time negotiating if the person you are speaking to is not in a position of power to do anything about your potential debt settlement. If the debt is not already in collections, try to speak to the original creditor.

Take notes during your conversation

As part of your negotiation, you should ask plenty of questions to ensure you are entirely clear on your agreement. Document the conversation as you go, and make sure you ask for formal documentation that supports any agreement you come to on your call. If you are unable to agree, do not be afraid to end the conversation and call back later.

Prepare for resistance

Having goals does not unfortunately guarantee that creditors will empathize with you immediately. You should make sure you are ready for resistance and pushback from your creditor. There are a few things you can do to prepare. Firstly, keep objective and remain calm throughout the conversation. If you are usually responsible and perhaps fell into debt due to an incident like a job loss, you should make this clear to your creditor. Stick to your ground, but be open to compromise – remember, whatever you agree, it must work for you.

Review your debt settlement agreement carefully before signing

Before you formally agree, ensure any payment terms are included within the agreement documents. You should carefully review each part of the agreement, checking to see there are no other rules that may contradict the agreement you discussed on the phone. Once your payment plan is agreed, make your payments on time in line with the agreement, and make them regularly until your credit card debt is gone.

What if your credit card debt settlement negotiation fails?

If your creditors do not agree to negotiate with you, do not fret. Creditors are very experienced in negotiating, and they know what to say and do on these calls. If your credit card debt settlement negotiation fails, it may be time to work with an expert to help you. A credit counsellor might be able to help you negotiate with creditors to remove penalties or reduce your interest rate. A Licensed Insolvency Trustee is another option – as experts in debt negotiation, they can have these difficult calls with your creditors on your behalf.

Getting professional support with negotiating credit card debt settlement

Sometimes, negotiating credit card debt settlement yourself may not be the best solution. Perhaps you are anxious about having the conversation, or do not know where to start. Thankfully, it is possible to gain professional support for formal negotiation on credit card debt. One of the best options is to consult a Licensed Insolvency Trustee. They are the only professionals in Canada legally able to file all forms of debt relief, offering you all of the options available. The first step is to book a free consultation, and they will review your financial circumstances. Following this, they will recommend a pathway for gaining debt relief and will negotiate with your creditors on your behalf.

Benefits of gaining professional support when negotiating credit card debt settlement

There are many advantages of consulting an expert when it comes to debt relief. Financial difficulty can have such a huge impact on the rest of your life, so it is important you get it right when it comes to debt relief. Here are some of the key benefits:

• They are experts in negotiation, and will always work to get the best debt settlement deal to reduce your payments as much as possible. At Spergel, for instance, we have a 99% acceptance rate on any consumer proposals we file.
• Professionals can also help you drastically reduce or clear your debt. Consumer proposals will reduce your debt by up to 80% while allowing you to keep your assets, and bankruptcy will completely clear your unsecured debt for a fresh financial future. Licensed Insolvency Trustees are required to file each form of your debt relief, and will walk you through each step of the process.
• Professional negotiation is more likely to result in a payment plan that offers greater flexibility and affordability when it comes to making your payments.
• Debt settlement is not always the right option for everyone, and professionals can advise you on perhaps another option you may not have considered before. For many, a debt consolidation loan or credit counselling might work best.

As with any form of legal debt relief, you need to consider the risks before proceeding. For instance, your credit score will be impacted depending on your actions, and there could be serious consequences if you agree to a debt settlement and miss payments. If you do not choose to file debt relief with a Licensed Insolvency Trustee, there is a risk that your creditors may not agree to negotiate. Legal forms of debt relief, including consumer proposals and bankruptcy, however, make it almost impossible for creditors to disagree. For this reason, it is a good idea to consult an expert to learn more about your options.

For further advice on how to negotiate credit card debt settlement yourself in Canada, book a free consultation with Spergel. Our expert Licensed Insolvency Trustees have years of experience in working with creditors and negotiating with them on our clients’ behalf. We can advise you on the best steps to take when it comes to negotiating down your credit card debt.