Finder makes money from featured partners, but editorial opinions are our own.

10 best debt relief companies in Canada

Debt relief in Canada can help you get financially back on track—but watch out for high fees and unrealistic promises.

Worried your debts will never go away? Bankruptcy isn’t your only option. Debt relief companies can help you get back on your feet financially. We explain how debt relief works plus 10 of the best debt relief companies in Canada.

Best debt relief companies in Canada

Before we dive into the 10 best debt relief companies in Canada, consider whether a debt consolidation loan would be more appropriate for you.

A debt consolidation loan combines all your debts into a single, monthly payment with a lower interest rate. A great way to take back control of your finances, it also lets you avoid more drastic solutions like submitting a consumer proposal. Learn more in our guide to debt consolidation loans in Canada.

1. Debt.ca

Debt.ca

  • Who they are: Debt.ca is a debt help website where you can access personal finance information, education and advice. Established in 2000, it offers access to Canada’s largest debt relief network and a wide range of debt relief solutions to help you take control of your finances.
  • How they can help: Debt.ca connects you with debt relief service providers in your area. Whether you’re looking for credit counselling, a debt management program or a licensed insolvency trustee to file a consumer proposal, Debt.ca can help you find a specialist near you.
  • Where they’re available: All provinces and territories — online only.
  • How much they cost: Free consultation but there may be a cost for debt relief programs.

Go to site

Pros

  • Easy access to debt relief strategies
  • Free consultation
  • Quick and easy online application

Cons

  • Be aware that the debt specialist you’re matched with may charge fees
  • Some debt relief solutions could hurt your credit score
Dive deeper Debt.ca review

2. Consolidated Credit

Consolidated Credit

  • Who they are: Consolidated Credit has been helping people pay off their credit card debt for over 15 years. This BBB accredited not-for-profit is also an Accredited Member of the Canadian Association of Credit Counselling Services.
  • How they can help: Consolidated Credit offers education and professional counselling services to help you get out of financial difficulties. You can talk to a counsellor for free to review your overall financial situation and determine if you qualify for a debt management program or other options for debt relief in Canada.
  • Where they’re available: Nationwide.
  • How much they cost: Free consultation but there may be a cost for debt relief programs.

Go to site

Pros

  • A+ rating from BBB and has been BBB accredited since 2008
  • 4.9/5 stars based on over 6,500 reviews on Trustpilot
  • Easy to access debt help

Cons

  • Some complaints about customer service issues
  • Some debt relief solutions could hurt your credit score

3. Credit Counselling Society

Credit Counselling Society

  • Who they are: The Credit Counselling Society is a non-profit charity with a mission to help Canadians achieve financial well-being. It is accredited by the Better Business Bureau (BBB), has over 25 years of experience and is an accredited member of Credit Counselling Canada. The Credit Counselling Society has also won Consumer Choice Awards in Ottawa, Hamilton, London, Winnipeg, Regina, Saskatoon, and Vancouver.
  • How they can help: The society offers a free in-person and over-the-phone credit counselling service where a counsellor can assess your financial situation and provide advice on the debt relief solutions in Canada to help you get back on track. It also offers other helpful debt relief options for Canadians including debt settlement programs and debt management plans as well as advice on filing a consumer proposal or filing for bankruptcy.
  • Where they’re available: British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.
  • How much they cost: Free credit counselling.

Pros

  • Free counselling service
  • Established in 1996
  • A+ rating from the BBB
  • Offers a wide range of educational resources to help you better manage your money

Cons

  • Not available in all provinces
  • Sliding fee scale for debt management program ($75/month cap)

4. Money Mentors

Money Mentors

  • Who they are: Money Mentors is an Alberta-based not-for-profit with over 25 years of experience offering debt relief in Canada. With six locations across Alberta, this credit counselling service has won multiple Consumer Choice Awards in Credit and Debt Counselling Services.
  • How they can help: Money Mentors offers free and confidential credit counselling and financial assessments. It can also help you understand your debt consolidation options and get out of debt with Alberta’s Orderly Payment of Debts (OPD) program.
  • Where they’re available: Alberta.
  • How much they cost: Free.

Pros

  • Unbiased advice from a non-profit organization
  • Free financial needs assessment via phone, video chat or in person
  • Also offers free personal finance classes

Cons

  • Only available in Alberta

5. Credit Canada Debt Solutions

Credit Canada

  • Who they are: Credit Canada has been helping Canadians access debt relief help and get out of debt for more than 50 years. This credit counselling agency is BBB accredited and offers access to a wide range of debt relief options.
  • How they can help: Credit Canada offers free counselling services in English and six other languages. After assessing your financial situation, it can help with debt consolidation and management programs, plus provide financial coaching and help you build your credit.
  • Where they’re available: Nationwide.
  • How much they cost: All programs are free except for the Debt Consolidation Program (DCP).

Pros

  • Not for profit
  • Canada’s oldest credit counselling agency
  • A+ BBB rating and BBB accredited since 2007
  • 8-time winner of the Consumer Choice Award for credit and debt counselling

Cons

  • Be aware that some debt relief solutions can negatively impact your credit

6. Solve Your Debts

Solve Your Debts

  • Who they are: Next on our list of the best debt relief companies in Canada, Solve Your Debts is a credit counselling service with more than 25 years of experience. This agency is accredited by the BBB and has a team of Accredited Financial Counsellor Canada (AFCC) certified counsellors to provide debt help.
  • How they can help: This not-for-profit offers free credit counselling to help you determine the best way to get out of debt. It also provides budget mentoring services and financial education to help you better manage your money.
  • Where they’re available: Atlantic Canada.
  • How much they cost: Free 1.5-hour consultations (debt relief programs come with a small fee).

Pros

  • Seven offices throughout Atlantic Canada
  • A+ BBB rating and has been BBB accredited since 2004
  • Consumer Choice Award winner
  • Free budgeting tools and resources

Cons

  • Not an option if you’re not in Atlantic Canada
  • Fees apply after initial consultation

7. Hoyes Michalos

Hoyes, Michalos and Associates

  • Who they are: Hoyes Michalos is a Toronto-based licensed insolvency trustee and credit counselling firm. Founded in 1999, it is accredited with the BBB and can help you explore a range of suitable debt relief options.
  • How they can help: Hoyes Michalos offers a free consultation to help you assess your options for debt relief in Canada. These range from credit counselling to debt settlement, debt consolidation, consumer proposals and personal bankruptcy.
  • Where they’re available: Ontario.
  • How much they cost: Free initial consultation.

Pros

  • A+ BBB rating and BBB accredited since 1999
  • Plenty of positive customer ratings
  • Has 29 offices in Ontario (non-local Ontario residents served via phone & video)

Cons

  • Not an option if you don’t live in Ontario
  • Be aware that fees may apply after initial consultation

8. Spergel

Spergel

  • Who they are: Spergel offers a team of credit counsellors and licensed insolvency trustees to help you get your finances back on track. Headquartered in Toronto, it has offices in Ontario, Québec, Manitoba, Saskatchewan, Alberta, British Columbia, and the Maritimes. It’s also BBB accredited.
  • How they can help: If you’re struggling with debt, you can book a free consultation with Spergel to discuss your options for debt relief in Canada. Help is available seven days a week, and Spergel can help you assess options such as debt consolidation, a consumer proposal and bankruptcy.
  • Where they’re available: Nationwide.
  • How much they cost: Free consultation.

Pros

  • A+ BBB rating
  • Lots of positive customer reviews
  • Virtual and in-person consultations available

Cons

  • Check what fees will apply after initial consultation

9. Sands & Associates

Sands and Associates

  • Who they are: Sands & Associates offers bankruptcy and debt help services in BC. Founded in 1990, this Consumer Choice Award-winning firm has more than 25 offices around BC.
  • How they can help: If you need help managing your debt, you can book a free consultation with Sands & Associates by filling out an online form. As licensed insolvency trustees, Sands & Associates can help you assess your options for debt relief in Canada and decide which one is best for you.
  • Where they’re available: BC.
  • How much they cost: Free consultation.

Pros

  • A+ BBB rating
  • 4.9/5 stars based on over 1,900 Trustpilot reviews
  • Helping people get out of debt for over 30 years

Cons

  • Not BBB accredited
  • Only has offices in BC

10. MNP Debt

MNP

  • Who they are: With more than 60 years in the industry, MNP Debt is one of Canada’s largest personal insolvency practices. It has over 240 offices across Canada and aims to help Canadians free themselves from debt once and for all.
  • How they can help: When you book a free consultation with an MNP Debt licensed insolvency trustee, they can assess your financial situation and find suitable debt solutions. These include consumer proposals, personal bankruptcy, insolvency counselling, debt consolidation and more.
  • Where they’re available: Nationwide.
  • How much they cost: Free consultation.

Pros

  • A+ BBB rating and accredited since 2022
  • Large network of offices
  • Founded in 1958

Cons

  • Check what fees apply after initial free consultation
  • Some complaints about customer service issues

How debt relief in Canada works

In Canada, “debt relief” refers to various solutions that help you get out of debt. Not just limited to bankruptcy, debt relief can also include financial counselling to help you better manage money or negotiating with creditors for lower repayment amounts or better interest rates.

Debt relief companies, which can be for-profit and not-for-profit, evaluate your financial situation to find the best debt relief option for your needs—whether through debt settlement, debt consolidation, credit counselling, submitting a consumer proposal or bankruptcy.

What are the best options for debt relief in Canada?

The best debt relief option in Canada for you depends on your financial situation. There are several helpful debt relief options for Canadians, so let’s take a closer look at how each of them works, how much they cost, and how they affect your credit score.

1. Debt consolidation loan

  • How it works: A debt consolidation loan is designed to make your debt repayments easier to manage and more affordable. The basic premise is that you take out a loan to pay off all your existing debts. You then only have one debt to pay off — your new debt consolidation loan — with a single monthly payment, and a lower interest rate than your previous debts.
  • How it affects your credit score: Your credit score will drop slightly when you apply for a debt consolidation loan because you’ll need to undergo a credit check. However, if your lender reports on-time payments to the credit bureaus, it can actually improve your credit score in the long run.
  • Cost: APRs of up to 46.96% depending on your credit score and income.

2. Debt management program

  • How it works: A debt management program allows you to consolidate your outstanding debts into one affordable monthly payment. A debt relief company or credit counselling agency can negotiate with your creditors on your behalf, and while you’ll still need to pay back the debt in full, you typically will only have to pay low or no interest. You then make your monthly payment to the debt relief service or counselling agency, which distributes the money to your creditors.
  • How it affects your credit score: A debt management plan will have a negative impact on your credit score. However, you can take steps to improve your credit once you get out of debt.
  • Cost: Fees are calculated based on the debt amount and your financial situation. For example, the Credit Counselling Society has a sliding fee scale, with a maximum fee of $75 per month. The fee is included as part of your monthly payment.

3. Debt settlement

  • How it works: A credit counsellor or debt relief company negotiates with creditors on your behalf to pay off less than what you owe. However, creditors may refuse to settle your debts, while you’ll also need to watch out for high fees that may apply. Learn more on the Government of Canada website.
  • How it affects your credit score: Debt settlement will have a significant negative impact on your credit score and will stay on your credit report for six years after you finish the program.
  • Cost: Fees commonly range from 15% to 25% of the debt settlement amount.

4. Consumer proposal

  • How it works: A consumer proposal is a legally binding agreement you enter into with your creditors to pay back less than what you owe, increase the amount of time you have to pay back your debts, or both. The agreement is administered by a licensed insolvency trustee, but creditors have the right to reject your proposal.
  • How it affects your credit score: A consumer proposal will have a significant negative impact on your credit score and will stay on your credit report for three years after you make your final payment. You’ll also find it harder to get a loan after a consumer proposal.
  • Cost: Filing fee ($100), counselling fees (2 sessions X $85), proposal administration fee ($1,500 + 20% of creditor distributions) and a levy of 5% of creditor distributions.

5. Bankruptcy

  • How it works: Filing for bankruptcy is a legal process administered by a licensed insolvency trustee. The process takes 9-21 months and you’ll stop making payments to your creditors for any unsecured debts. Once you’ve declared bankruptcy, the trustee will sell your assets to pay your creditors, and a portion of your income will be paid to the trustee so they can distribute it to your creditors.
  • How it affects your credit score: Your credit score will drop to the lowest possible level. Bankruptcy will stay on your credit report for up to 6-7 years after you’re discharged from bankruptcy.
  • Cost: Approximately $1,800 in fees.

Is it a good idea to use a debt relief company?

If you’re looking for helpful debt relief for Canadians, negotiating debt settlement with your creditors can be risky because it’s not guaranteed that they will agree to lower rates or payments. Your creditors are not required to negotiate your debt, and if you stop making payments to them — as some debt settlement companies recommend — you could run into a lot of trouble, and find yourself in court.

A debt relief company can be helpful for Canadians legitimately struggling with debt and considering bankruptcy. If you’ve experienced a legitimate financial hardship, such as unemployment or a medical emergency, the company could suggest other avenues you haven’t considered. It may also be possible to keep assets that would otherwise be sold if you filed for bankruptcy.

How do I pick the best debt relief option?

A debt consolidation loan may be a suitable option if the following applies to you:

  • You have multiple outstanding debts.
  • You’re struggling to keep track of and afford all your monthly payments.
  • You can get a lower interest rate and fees with a debt consolidation loan than what you are currently paying.
  • You will be able to afford the monthly payments toward your debt consolidation loan.

A debt management program may be a helpful debt relief option if the following applies to you:

  • You can’t qualify for a suitable debt consolidation loan.
  • You have multiple unsecured debts and you are struggling to make on-time payments.
  • You don’t need to apply for new credit while you’re in the debt management program.

A debt settlement program may be a suitable option if the following applies to you:

  • You’re struggling to make regular, on-time debt payments.
  • You don’t think you’ll ever be able to pay off all your debts.
  • You have access to enough money to pay the debt settlement amount.

A consumer proposal may be a helpful option if the following applies to you:

  • You are insolvent (you cannot make your payments or your debts are greater than your assets).
  • You can’t afford to pay back the full debt amount.
  • You have unsecured debt of $1,000 – $250,000.
  • You want to hold onto your assets.

Bankruptcy may be a suitable option if the following applies to you:

  • You’ve considered all of the above options for debt relief in Canada.
  • Your monthly debt payments are greater than your monthly income.
  • You are unable to make on-time payments.

Seek advice from a credit counsellor to figure out which of the above choices is the best debt relief option for you.

What does it take to qualify for debt relief in Canada?

Eligibility criteria vary depending on the option for debt relief in Canada you choose. For example, any Canadian who is struggling with debt can access credit counselling to get advice on the options available to them. If you’re committed to paying back what you owe and you have sufficient income, the counsellor may recommend that you enroll in a debt management program.

The next helpful debt relief option for Canadians may be debt settlement. As a general guide, this option may be worth considering if you have at least $10,000 in unsecured debt. You’ll also need to show that you have enough income to cover payments, and that you have savings to help pay off the settlement amount.

As a consumer proposal is a legally binding agreement, it has more formal eligibility requirements. To qualify you must:

  • Be insolvent
  • Owe between $1,000 and $250,000 in unsecured debt (excludes your mortgage)
  • Have enough income to repay according to the proposal terms
  • Work with a Licensed Insolvency Trustee
  • Not have any other current consumer proposals (completed past proposals are acceptable)
  • Be a Canadian resident or citizen

To file for bankruptcy you must:

  • Owe $1,000 or more in unsecured debt
  • Be insolvent

How to spot an illegitimate debt relief company

While there are plenty of legit debt relief companies in Canada, unfortunately there are also some sketchy providers that prey on people experiencing financial hardship. That’s why it’s important to be able to recognize the warning signs that could indicate a company offering debt relief in Canada is not above board, such as:

  • It charges an upfront fee for its services. Most legit, helpful debt relief companies won’t ask for fees upfront or all at once, preferring steady payments toward settlement accounts and services.
  • It makes promises that sound too good to be true. If a debt relief company guarantees a specific amount of debt savings, or promises to solve all your problems without first assessing your financial situation, this is a red flag that could indicate a debt relief scam.
  • It pressures you to sign up. Be wary of high-pressure sales tactics that try to encourage you to sign up as soon as possible.

It’s possible to avoid a scam by doing some research. When researching a debt relief company, ask yourself:

  • Does it have a good reputation? Head to the Better Business Bureau (BBB) website to see if the company has any complaints against it.
  • How long has it been around? While not always the case, older and more established businesses feel less pressure to engage in unsavoury business practices to stay afloat.
  • What’s the website like? Can you find answers to most of your questions with a few clicks? Is it clear what services it provides, and is that information consistent? If you find yourself frustrated online, you might find more frustration with the company itself.
  • How much control will you have over your money? Debt settlement companies in particular work by having you pay into an account from which the company then pays your debt settlement fee.
  • What types of debts does it settle? Established debt relief companies can settle specific types of loans and even some unsecured debt, but most only handle such basics as unpaid bills, personal loans and credit cards.
  • What timeline does it advertise? Typically, debt settlement programs take two to four years. Try to avoid longer terms — it increases your risk of facing trouble with your creditors.
  • How did you hear about them? If the company solicited you for its services, make sure advertised promises are true. Otherwise, it’s not following government regulations.

Getting sued for debt relief

Some debt settlement companies will tell you that once you’ve signed on for their services, it’s okay to stop paying your creditors if you can’t afford it. This is risky: Not only will you continue to accrue interest and late fees on your creditors’ debt, but you may also get calls from collection agencies regarding your debt.

If you don’t pay your creditors over too long a time, you could be sued. If you lose the lawsuit but can’t pay up, you may be fined or have your wages garnished.

Better debt settlement companies can connect you with legal services to avoid such problems. Remember there’s no guarantee your creditors will accept a settlement offer, so avoid any debt relief company that says otherwise.

I signed up for debt relief in Canada. Now what?

“Change your financial behaviour and change your life—for good. True debt management is about one thing: you controlling your money.”

— Dave Ramsey, financial speaker & author of The Total Money Makeover

No matter how helpful debt relief companies are, they can only do so much — you have to make their programs work for you.

5 ways you can make debt relief in Canada worth it

  1. Avoid taking on more debt. It might be difficult to avoid spending if you’re enrolled in a debt relief program, but many companies require you to close your accounts.
  2. Watch your credit score and report. Know what to expect, and monitor your credit report for any irregularities. In general, debt settlement programs can cause your credit to take a dive. Debt management shouldn’t greatly affect your score, but you might see a line on your report indicating you’re paying off a debt through credit counselling.
  3. Continue paying your creditors. If you have the means, continue to make at least your minimum payments to keep interest and late fees from piling up — not to mention to keep harassing calls from collection agencies or potential lawsuits at bay.
  4. Make sure everything adds up correctly. Do your fees match up with your original agreement? If you see anything out of the ordinary, call your debt relief company.
  5. Take advantage of free resources. Credit counselling agencies and other debt relief companies often provide tools to help you stick to a budget or rebuild your credit score. Use them to get back on track and identify your financial issues.

DIY debt solutions

Not ready to pursue debt relief in Canada, but can’t qualify for a debt consolidation loan? You have a few DIY debt solutions to help you get out of debt sooner.

  • The avalanche method. Pay off your debts by tackling the ones with highest interest first. If you don’t know what your highest interest debt is, it’s usually the one whose full balance is due the soonest. You could end up saving a lot of money, especially on shorter-term loans that build up fast if you don’t stop them quickly.
  • The snowball method. Get quick wins by clearing your smallest debts first. The advantage is that smaller loans won’t get a chance to grow into bigger, unmanageable loans, simplifying your debt. However, it could cost more in the long-term than if you were to use the avalanche method.
  • Negotiate with your creditors. Your debt company might tell you it’s best to leave negotiations to the professionals. However, it is possible for you to call up your creditors yourself. If you’re candid about your situation, they might be willing to reduce your interest rate, your principal or even settle. Be firm about what you can afford, and escalate the call until you reach somebody who can help.

Good debt management is 80% behaviour and 20% head knowledge. It isn’t rocket science, as some debt management companies try to make you believe.

— Dave Ramsey, financial speaker & author of The Total Money Makeover

Bottom line

Debt relief companies in Canada provide many solutions to help you get out of debt, including credit counselling, debt settlement, consumer proposals and bankruptcy. Companies offering “relief” often deal with debt settlement. Credit counselling agencies assess your financial situation to find the best debt relief solution for you.

Frequently asked questions about debt relief in Canada

More guides on Finder

Go to site