understadning debt relief
Debt relief offers solutions for those struggling to repay what they owe. With rising living costs, high interest rates, and growing household debt, many Canadians are feeling the pressure.
Whether you're dealing with credit card balances, loans, or financial setbacks, help is available. Options like consumer proposals, debt consolidation, and bankruptcy can reduce payments, stop interest, and provide a path to financial recovery.
Everyone’s situation is different. With the right plan and support, becoming debt-free is possible.
Support When You’re Struggling with Debt
Talking about debt can feel uncomfortable—but there’s no shame in it. Life happens, and debt can affect anyone. Millions of Canadians are in the same boat, trying to keep up with bills and rising costs.
Struggling financially doesn’t mean you’ve failed—it means you’re human. Acknowledging it is a sign of strength. Taking that first step toward help is tough, but it’s also empowering.
At Debt Wise Solutions, we offer support without judgment—just clear guidance to help you move toward a debt-free future.
Exploring Your Debt Relief Options
Debt can take a serious toll on your well-being—impacting your health, relationships, and peace of mind. The stress of mounting bills and creditor calls can feel overwhelming.
At Debt Wise Solutions, we’re here to help. Our team takes the time to understand your situation and walks you through the best debt relief options for you. Whether it’s credit cards, loans, or rising expenses, we’ll help you find a clear, personalized path to financial stability.
Debt Consolidation
Debt consolidation involves taking out a single loan to pay off multiple debts, streamlining your payments into one manageable monthly installment. This approach often comes with a lower interest rate compared to your existing debts, making it easier to stay on top of payments and regain financial control.
Debt Management
A Debt Management Plan (DMP) is an informal arrangement between you and your creditors, facilitated by a licensed credit counseling agency. This flexible plan can be adjusted to fit your financial situation. While interest on your debts is usually frozen, you are still required to repay the full amount owed.
Consumer Proposal
A consumer proposal is a legally binding agreement between you and your creditors that allows you to settle your debts by paying a reduced amount, often as little as 30%, through a single, manageable monthly payment. Unlike other debt solutions, a consumer proposal has no interest charges, and once the agreement is completed, you will be debt-free. This process must be administered by a federally regulated Licensed Insolvency Trustee.
Debt Settlement
Debt settlement is an informal agreement between you and your creditors, allowing you to pay a reduced portion of your total debt. For the agreement to be effective, all creditors must consent to the settlement. This process often requires a lump sum payment, and additional fees may apply. It's important to note that debt settlement companies are generally not regulated.
Bankruptcy
Bankruptcy is a legal process designed for individuals who cannot afford other debt relief options. It eliminates your debt but may require you to surrender certain assets, such as your home. Intended to provide a fresh start for honest but financially struggling individuals, bankruptcy can only be filed through a Licensed Insolvency Trustee.