If debt consolidation isn’t a viable option for you or if you were rejected for a consolidation loan, there are several other options available. It is always best to talk to a professional to find out which solution is right for you.

If Orderly Payments of Debt doesn’t seem like a viable option for you or is not available in your province, there are other possibilities. Speak to a Licensed Insolvency Trustee for your options.

Consolidating your debt is a good choice for those who have a satisfactory credit rating and sufficient income to pay back their debt in full. Individuals with higher debt, a lower credit rating or low income should consider pursuing a Consumer Proposal or Bankruptcy.

For residents of Quebec, there exists the Voluntary Deposit Law (formerly known as the Lacombe Law). You can use a portion of your earnings (as determined by law) to make monthly payments to the Courts. You’ll need to make sure you pay off 100% of your total debt with an annual interest rate of 5%. To learn more about the Voluntary Deposit Law, please contact your local courthouse.

The institution that granted your consolidated loan may cancel any credit cards or close lines of credit you have to make sure that you don’t continue to accumulate debt. This decision is made by financial institution providing the loan.

There is a small application cost, as well as the 5% monthly interest accrued during the repayment term.

If you suddenly lose your source of income or are simply unable to pay your consolidated loan, you may need to explore other options such as Bankruptcy or a Consumer Proposal. Speak to a Licensed Insolvency Trustee.

There may be a fee involved to open a file for your consolidation loan, in addition to regular loan payments.

My wages are being garnished to pay for my outstanding debts. I am afraid to answer the phone because it may be a debt collector calling. My creditors are threatening to sue me, repossess my personal property or hire a collection agency to recover their money. I have been borrowing money for household expenses from friends and family to make it from one pay cheque to the next. I am paying one creditor one month and another...

Insolvency is a formal term from bankruptcy law. If you are insolvent, it means your liabilities or debts exceed the value of your assets. You would also be considered insolvent if you are unable to pay your debts on time.