FinviloDebt consolidation in Canada: loans, credit counselling and proposals
Consolidation replaces several debts with one payment, ideally at a lower rate. In Canada the options range from a consolidation loan or balance transfer card if your credit is good, to a non-profit debt management plan, to a consumer proposal filed through a Licensed Insolvency Trustee if you cannot repay in full.
Options from least to most serious
Choose based on whether you can repay the full amount.
- Consolidation loan or line of credit: one payment, potentially lower rate, requires approval.
- Balance transfer credit card: low promotional rate for a limited time, often with a transfer fee.
- Debt management plan through a non-profit credit counsellor: you repay in full, interest may be reduced, noted on your credit report.
- Consumer proposal: a legal settlement for part of what you owe, administered only by a Licensed Insolvency Trustee.
Check the total cost, not the payment
A lower monthly payment over a longer term can cost more overall. Compare total interest using the loan calculator, and include any fees.
Watch for unlicensed debt services
Only Licensed Insolvency Trustees can file consumer proposals and bankruptcies. Be cautious of companies charging upfront fees to negotiate with creditors; the federal Office of the Superintendent of Bankruptcy lists licensed trustees.
Run the numbers with our calculator
Frequently asked questions
- Will consolidation hurt my credit?
- A new loan application causes a hard inquiry. Debt management plans and consumer proposals are recorded on your credit report for a set period.
Compare options
Official sources
General information only, not personalized financial, tax or legal advice. Rules change; confirm current details with the source.