Debt management is one of the biggest challenges facing Canadians today. On average the debt to income ratio for Canadian households has been growing alarmingly out of control.
While mortgages typically represent the bulk of household debt, many Canadians also have lines of credit, consumer loans and credit card debt that are accruing interest.
Of these, the interest rate on credit cards is often the highest rate among all the various forms of debt that Canadians may carry. Our credit card repayment calculator will calculate what you need to do in order to pay any balance on your credit cards.
For a more comprehensive review of your debt situation use the DebtPlanner. If you have difficulty meeting your debt obligations a consultation with a debt counselling service can help you begin to get your finances under control.
Debt Management Plan
A debt management plan can help you get out of debt by consolidating all of your unsecured debts and credit card payments into one monthly payment. These payments are tupically structured so they are affordable based on your budget. You then make one monthly payment to a licensed consumer credit counselling service who we disburse the funds to the various creditors every month.
Your creditors have to agree to allow you to go onto a debt management plan. Usually they will support this strategy if an accredited credit counsellor believes that this type of program is the right solution. Those who enroll in a Debt Management Program try to pay off their program as fast as they can. The time period for which you are enrolled in the debt management program is typically 5 years and often the program is completed in less than 3 years.
There is typically no penalty if you can pay your program off faster.