Debt Consolidation

Debt consolidation combines or coordinates multiple debt payments so they are easier to manage. Depending on your credit, income, location and debt mix, the right option may be a consolidation loan, balance-transfer card, Debt Management Program or an Orderly Payment of Debts program. Credit Matters helps you compare the true cost and choose a sustainable path.

Debt consolidation loans

A debt consolidation loan replaces several balances with one new loan and one monthly payment. A lower interest rate can reduce borrowing costs, but approval and pricing generally depend on your credit history, income, existing debt and ability to repay.

• One predictable monthly payment
• Potential for a lower blended interest rate
• A fixed repayment schedule
• Qualification may require good credit or security

Balance-transfer credit cards

A balance-transfer card moves eligible credit-card balances to a card offering a low or 0% promotional rate, commonly for a limited period. Transfer fees often apply, and any balance remaining after the promotion may be charged the standard rate.

• Confirm the promotional rate and end date
• Include transfer fees when comparing savings
• Check the available transfer limit
• Avoid adding new purchases while repaying the balance

Debt Management Programs

When affordable consolidation credit is unavailable, a Debt Management Program may offer similar payment simplicity without creating a new loan. Counsellors work with participating creditors to seek reduced interest or waived fees. Your accounts remain separate, but you make one monthly payment to the agency for distribution.

• One monthly program payment
• Potential interest relief from participating creditors
• Budgeting education and counsellor support
• Useful when credit does not qualify for competitive loan rates

Orderly Payment of Debts

An Orderly Payment of Debts program is a court-administered consolidation option available only in Alberta, Saskatchewan, Prince Edward Island and Nova Scotia. Eligibility and terms vary by province, so a personalized assessment is essential.

Choose the option that fits your full financial picture

The lowest advertised rate is not always the best solution. We compare monthly affordability, total repayment cost, fees, credit impact and the risk of returning to debt before recommending a strategy.