FAQs

Frequently Asked Questions

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Frequently Asked Question Topics

Understanding Relief Options

Credit counselling is a professional service designed to help individuals find a structured path out of debt. Working with a certified financial counsellor, you will review your entire financial picture, including your income, expenses and debts. From there, you receive a personalized action plan, which may include custom budgeting assistance, specialized money management education or a structured Debt Management Program (DMP) to lower interest rates and consolidate payments.

Yes, it matters immensely. Not-for-profit credit counselling agencies like SolveYourDebts.com are driven by service, not margins. Because we do not have shareholders or profit targets to hit, our only goal is your long-term financial health. This non-profit mission guarantees that we have your absolute best interests at heart, focusing entirely on objective education, compassionate guidance and finding the most sustainable route to financial freedom for you.

Legitimate non-profit agencies are transparent, highly reviewed and credentialed. Look for these specific green flags:

No high-pressure sales tactics or demands for massive upfront fees before any work is performed.


They are entirely different legal and financial pathways:

  • Credit Counselling (Debt Management Program): A structured, voluntary agreement where you repay 100% of what you owe, but at significantly reduced or eliminated interest rates. It focuses heavily on teaching long-term money skills so you don’t go into debt again, and is only offered by non-profit organizations.
  • Debt Settlement: A high-risk approach where you stop paying creditors in hopes of offering a lump-sum payment for less than you owe. It severely damages credit and offers no legal protection from lawsuits or collections.
  • Bankruptcy: A legal process managed by a Licensed Insolvency Trustee where your eligible assets may be liquidated to settle a portion of your debts, erasing the rest.

Both are formal debt relief options administered by a Licensed Insolvency Trustee under the Bankruptcy and Insolvency Act, but they work completely differently in how they treat your assets, your payments, and your financial future:

  • A Consumer Proposal is a legal offer to your creditors to pay back a portion of what you owe over a fixed timeline of up to five years. It allows you to protect and keep major assets like your home equity and your car.
  • Bankruptcy is a legal process where you surrender your non-exempt assets (such as equity, investments, or tax refunds) in exchange for having your eligible debts entirely eliminated.

While a consumer proposal is generally preferred over bankruptcy because it allows you to keep your property, it still requires you to pay thousands of dollars back over several years.

A credit counselling agency focuses on financial education, budgeting and voluntary repayment plans to help you clear debt systematically. A Licensed Insolvency Trustee (LIT) is an officer of the court authorized to administer legal insolvency proceedings like bankruptcies and consumer proposals. While trustees focus on legal debt discharge, credit counselling agencies focus on equipping you with behaviour-changing skills to ensure you remain financially stable for life.

For most people, yes. Credit counselling allows you to pay back your debts in full with waived or reduced interest, providing a profound sense of pride and personal accountability.

Furthermore, credit counselling has a repeat rate of under one per cent, versus 22 per cent for insolvency trustees. This means that 22% of people who file for bankruptcy will likely find themselves in a position where they have to file for it again down the road. Credit counselling breaks this cycle entirely. Because our program focuses on financial education, you leave with the permanent structural skills needed to safeguard your future.

Ignoring collectors does not make the debt disappear. Lenders will eventually escalate the account by selling it to aggressive third-party collection agencies, reporting severe delinquencies to credit bureaus or taking legal action against you, which can lead to asset liens or court-ordered wage garnishments. Addressing the issue through a non-profit agency stops collection calls safely and structures a legal, mutually agreed path forward.

Credit Counselling & Debt Management Plans

When you enrol in a Debt Management Program (DMP), we consolidate your unsecured debts into one manageable monthly payment. We negotiate directly with your creditors to stop or dramatically lower your interest charges. Because the goal is to stop accumulating debt while you pay off what you owe, your credit cards are systematically closed when you enter the program, allowing you to focus entirely on cash-based living.

Yes. Non-profit agencies like SolveYourDebts.com have longstanding partnerships with major banks and credit card issuers. While we cannot legally force a creditor to change their terms, the vast majority of mainstream lenders will agree to reduce your interest to 0 or a very low single-digit rate once they see you are committed to a structured non-profit Debt Management Program.

You can include most unsecured debts, such as credit cards, personal lines of credit, unsecured bank loans, payday loans and even standard collections accounts. Secure debts—like your mortgage or a car loan backed by collateral—cannot be included, as they are tied directly to physical assets.

Initial consultations and budgeting sessions are completely free. If you choose to enrol in a structured Debt Management Program, there are small, regulated administration fees built directly into your affordable monthly payment to cover program maintenance. Because we are a non-profit, these fees are kept minimal, and no one is ever turned away due to an inability to pay.

Yes, it works exceptionally well for those committed to a fresh start. By eliminating crushing interest rates, consolidating payments and instilling real-world financial literacy, credit counselling empowers you to become completely debt-free while instilling a deep sense of personal pride that stays with you for life.

Yes, education is the foundation of everything we do. We believe that resolving your current debt is only half the battle. Our programs focus heavily on personalized budgeting sessions, cash-flow coaching, and money management workshops to ensure you possess the long-term skills required to build wealth after your debt is gone.

Most traditional budgets fail because they are too restrictive or don’t account for real-world irregularities. We don’t just hand you a spreadsheet; we teach you actionable, behaviour-driven financial education. We help you build a realistic, flexible cash-flow framework that adapts to your life, ensuring you build permanent habits for the long term.

Credit counselling agencies are licensed to operate under Provincial consumer finance legislation.

We are also an accredited not-for-profit member agency at Credit Counselling Canada.

As part of our accreditation, each of our counsellors must achieve a Certified Financial Counsellor (CFC™) designation from the Canadian Association of Financial Empowerment.  They must also comply with Credit Counselling Canada’s code of Ethics and Standards of Practice, which is monitored annually by their accreditation compliance process.

We are also a registered member of the Better Business Bureau of Canada, and are committed to consistently meeting all our obligations under Provincial privacy legislation.

Eligibility

Anyone struggling to manage their monthly debt payments, facing high-interest rates or feeling overwhelmed by their finances is eligible. In fact, it’s actually better to get help before your debt gets worse, as you’ll have more options available to you.

There are no strict income requirements, minimum debt thresholds or credit score barriers to sit down with a counsellor and map out a plan.

The goal of our credit counselling services is to equip people with the tools necessary for the successful management of their finances. Whether you need help with debt repayment, budgeting or general financial education, our certified financial counsellors are up to the task.

Among other services, SolveYourDebts.com can assist you with:

  • Negotiating reduced payment and interest terms with creditors
  • Drafting alternative payment plans
  • Planning and maintaining a budget
  • A wide variety of financial education services

Yes. If you have already gone through a legal insolvency process with a trustee, we can work alongside you to provide the practical post-insolvency financial education, budgeting frameworks and cash-flow skills required to rebuild your life and ensure you never have to face financial distress again.

Never. Because we operate as a non-profit, our counsellors do not work on commission and do not have sales quotas. Our sole job is to present your options objectively; answer your questions and support whatever decision you feel is best for your family.

That is completely okay. Once we present you with your options, you’ll have a better understanding of where you stand. There’s no pressure to sign up, and we’ll move entirely at your pace.

Credit Scores & Asset Protection

For most individuals seeking help, their credit utilization is already dangerously high, or they are missing payments. A DMP stops the bleeding, establishes a history of consistent on-time payments and clears your balances to zero, laying a rock-solid foundation for a healthy score later.

A successfully completed DMP generally remains on a credit report for 2 years after completion, whereas a consumer proposal typically remains for 3 years after completion. Most clients find that completing a DMP leaves them in a stronger financial position than when they started.

No. If your debts are completely separate and your spouse has not co-signed or joint-applied for your credit cards or loans, your debt management program or consumer proposal will have zero impact on their credit score or credit report.

No. When you review your own credit report, or when a non-profit credit counselling agency pulls your file , it is classified as a “soft inquiry.” Soft inquiries do not impact your credit score in any way.

Your credit score can absolutely recover and become stronger than ever. While a debt management program is noted on your report while active and generally remains on a credit report for 2 years after completion, most individuals see rapid, significant improvements within 6 to 12 months of completing the program by maintaining steady, positive financial habits and utilization.

Yes, absolutely. Completing a non-profit debt management program proves to prospective lenders that you took full responsibility for your financial obligations and paid your debts back in full. Once the program note clears from your report, you will be in an excellent position to qualify for mainstream mortgages and auto loans.

Yes. Because credit counselling is a voluntary, non-insolvency restructuring program, it does not involve the liquidation of your personal assets. Your house and your vehicle remain completely safe, provided you continue making your regular payments directly to your mortgage lender or auto financing company.