How to Get Debt Assistance in Canada

Canadians have been falling behind on their credit payments at an increasing rate. According to Equifax Canada, the average delinquency rate increased by about 24 percent from June 2008 to June 2009. If you are among those who have been struggling to pay your debts, there is help available. The Canadian government and non-profit groups offer credit counselling services to help you get back on track.

Instructions

1

Contact financial institutions. Call or visit banks, Caisses populaires or cooperative financial institutions, and credit unions in your area. Financial institutions usually offer a consolidation loan at an interest that is lower than that charged by your creditors. Contact several institutions first to see which offers the best rate before making a decision. To qualify for this loan, you have to show that you have a sufficient income.

2

Use the services of a credit counseling organization. Non-profit organizations or private companies offer credit counseling services that may be free or may involve a fee. A credit counselor can make arrangements for reduced monthly payments and interest charges. Usually, you make one regular payment to your counselor, who in turn, will distribute the money among your creditors. To find a credit counseling agency nearest you, visit the website of Credit Counselling Canada.

3

Contact government credit information agencies. You can get information about financial services from the Financial Consumer Agency of Canada. You can also find tools to help you with your debt, from the Office of Consumer Affairs and Service Canada.

4

Seek the help of bankruptcy authorities. If other options fail, you can get in touch with the Office of the Superintendent of Bankruptcy Canada. The office allows you to make a consumer proposal where you offer to modify your obligations to your creditors. If you live in Alberta or Saskatchewan, you may apply for a consolidation order, which lets you pay through the court. The court then distributes your payments to your creditors. For Quebec residents, a plan similar to the consolidation order is called a voluntary deposit scheme. You may also file for bankruptcy where the government sells your assets and distributes them among your creditorsa process which frees you from most of your debts. Contact the bankruptcy office nearest you.