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Government assistance with consolidating loans

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Our advice is free and we make sure we recommend the best debt solution for your individual situation.

A debt consolidation loan is a single loan (generally from a financial institution) that allows you to repay your debts to several or all of your creditors at once.

In most cases, the financial institution will settle all the debts for you and, in return, the only monthly payment you will have to make will be to them.

Contact several financial institutions before you choose a consolidation loan since the interest rates offered by competing financial institutions may vary.

Your financial institution will be able to tell you which of your debts you will be able to pay off with the loan that they grant you.

If you owe people money (your ‘creditors’) you can make arrangements to pay your debts.

The first thing you should know is that no government in Canada – federal, provincial, or municipal – officially approves any debt consolidation program.

However, not all debts can be combined into a consolidation loan — a mortgage cannot be included, for example.

These companies used phrases like ‘Government debt consolidation’ or ‘Government debt advice’ to fool people into using their services.

In reality these companies charged a fee to provide debt management services that are available free from charities like us.

Your options depend on the amount of money and assets you have.

You can pay your debts in instalments by setting up: You can apply for a Debt Relief Order or Bankruptcy Order if you can’t pay your debts because you don’t have enough money or assets you can sell.