A clear map out of debt
Learn the main consolidation paths in Canada and which professionals handle each option.
Consolidation Paths — Pros, Cons & Fit
Consolidation Loan
One new loan pays off multiple debts
Pros: simplicity, possible lower payment.
Cons: needs credit/income; rate may be higher than secured options. Who handles: banks/alternative lenders.
Balance Transfer Card
Low/0% promo periods to shift balances.
Pros: temporary relief.
Cons: fees; requires good credit; post‑promo rate jump. Who handles: banks/ issuers.
HELOC / Mortgage Refinance
Pros: lower rates.
Cons: puts home at risk; needs equity/income. Who handles: mortgage lenders/ brokers.
Debt Management Program (DMP)
Pros: structure & coaching.
Cons: not all debts eligible. Who handles: accredited counselling agencies.
Consumer Proposal
Pros: stops interest/collections.
Cons: credit impact; fees. Who handles: LITs.
Debt Settlement (informal)
Lump‑sum negotiations with creditors.
Pros: may reduce principal
Cons: risky; tax/credit impacts; scams exist. Who handles: private firms/ lawyers.
Our Role
- Education and budgeting frameworks, document checklists.
- Referrals to Licensed Insolvency Trustees, mortgage professionals, or counsellors based on fit
- Light coordination so your plan stays on track.
We are not a bankruptcy/insolvency firm. Only a Licensed Insolvency Trustee can file proposals/ bankruptcies in Canada.
