What matters most to you?
Everyone qualifies for these. Tell us what you are optimising for and we will sort the list.
Service type
Free consultation
Province
Licensed trustee only
3 compared
Not yet rated
Service type
Debt restructuring advice, credit rebuilding, budgeting
A debt restructuring consultancy that works alongside independent licensed insolvency trustees, advising on options and negotiating restructuring.
Not yet rated
Service type
Consumer proposal, bankruptcy, debt counselling
One of Canada's largest licensed insolvency trustee firms, filing consumer proposals and bankruptcies alongside debt restructuring advice.
Not yet rated
Service type
Credit counselling, debt management programme
A non-profit credit counselling agency offering free counselling and debt management plans that consolidate unsecured debt into one monthly payment with interest reduced or eliminated.
Why this column
Licensed insolvency trustee. Only a licensed trustee can file a consumer proposal or bankruptcy, and it is the single most important thing to know before choosing a provider.
The cost that decides it
The four paths compared on cost, credit impact, how much debt is actually reduced, and how long it takes. Only the consolidation loan routes into our funnel; the other three link to licensed providers and honest guides.
The four paths, compared
Debt consolidation loan
Any lender you qualify with
What it costs
Interest on the new loan; worthwhile only at a rate meaningfully below what you pay now
What it reduces
Nothing - the full principal is repaid, ideally at lower interest
Credit impact
A hard check at application; on-time payments then help your history
How long
Fixed terms, commonly 2 to 5 years
Debt management plan
A credit counselling agency
What it costs
A modest monthly administration fee; interest is reduced or frozen
What it reduces
Interest only - the full principal is still repaid
Credit impact
Noted on your report while enrolled and for about two years after completion
How long
Usually 3 to 5 years
Consumer proposal
A Licensed Insolvency Trustee only
What it costs
No upfront fee - the trustee is paid out of the payments creditors accept
What it reduces
The principal itself, often substantially - creditors accept less than owed
Credit impact
Stays on your report for three years after completion; collection activity legally stops
Bankruptcy
A Licensed Insolvency Trustee only
What it costs
A base contribution, plus surplus-income payments where income is above the threshold
What it reduces
Most unsecured debts are discharged; support, fines and recent student loans survive
Credit impact
The heaviest mark - a first bankruptcy stays on your report for about six years after discharge
How long
A first bankruptcy typically runs 9 to 21 months
Common questions
What is the difference between a debt management plan and a consumer proposal?
A debt management plan reduces or freezes interest while you repay the full principal, usually over three to five years, and is arranged by a credit counselling agency. A consumer proposal reduces the principal itself and is a legal process that only a licensed insolvency trustee can file. The proposal has a heavier credit impact but settles the debt for less.
Does credit counselling cost money?
The first conversation is free with every provider listed here. A debt management plan usually carries a modest monthly administration fee, disclosed before you enrol. Anyone charging for an initial consultation is worth avoiding.
When does a consolidation loan make more sense than a debt management plan?
When you can qualify at a rate meaningfully below what you are paying now. On $15,000 of card debt at 22.99%, consolidating at 19.99% saves roughly $1,080 over four years. Consolidating near the 35% federal cap costs more than staying put, and a debt management plan will serve you better.
Will any of these stop collection calls?
A consumer proposal and a bankruptcy both trigger an automatic stay that legally stops collection activity. A debt management plan does not, though most creditors stop once a plan is in place. A consolidation loan stops calls only because the original debts are paid off.
