Debt Relief Solutions in Toronto, ON

Debt.ca is Canada’s trusted source for debt relief.

At Debt.ca, we understand that people might find themselves over-indebted by debt for many reasons including job loss, reduced income, medical expenses, or even the rising costs of raising a family. When faced with a mountain of consumer debt, it is quite easy to become overwhelmed and believe that you will never be able to pay off your creditors. The high interest rates associated with consumer debts, late fees for those who are behind on their payments in Toronto, debt-relief can seem like an illusion. In Toronto alone, monthly payments for credit cards reached $394.4 million in Q4 2023, making it the second highest in the country after Montreal. This is an increase of 24.65% from Q4 2022.

This growth is reflective of the increasing debt load in Canada as a whole. As of Q3 2023, the total consumer debt in Canada reached $2.4 trillion, compared to a total consumer debt of $1.99 trillion in 2019. Many Canadians in Toronto are struggling with their daily living expenses. We aim to help all Canadians better understand their debt relief options and save the most money while they get out from under their unsecured loans.

Are you a Torontonian struggling with debt or trying to figure out which debt relief program will help you get out of debt in the quickest amount of time and for the least amount of money? If so, let us show you that you can live a life free of bills and you do have more options than you probably realize. Simply put, if you’re paying out more money every month than you have coming in, we can get you to a professional who can help. Fill out the form above to get started today!

Credit Counselling Help in Toronto, On.

Ontario may be the largest Canadian province in terms of population, but its residents are fortunate that they do not carry the largest average amount of consumer debt per capita. In fact, the current average debt in Ontario is $21,482 as of Q3 2023, with a delinquency rate of 1.21%. This is a relative improvement over previous years. As of the end of Q1 2021, residents of Ontario had an average debt level of $27,523, up 14.5% from the same period in 2019 at $24,032, but down from the peaks of the earlier decade. These debt levels are comparable with other major provinces around the country, however, well under the highest debt-laden province, which is Alberta.

Unfortunately, the picture is not all roses for the residents of Toronto as they currently have an unemployment rate of 7.9% (as of May 2024), higher than the unemployment rate of 6.1% in all of Canada (as of March 2024). If you live in Toronto and cannot pay your bills on time or are seeing your overall debt levels increase month after month, then credit counselling may be the answer you are looking for. A quality Toronto credit counselling program can help you get out from under your debt and shore up your financial future at the same time.

Do Debt Management Plans work for Torontonians?

Debt Management Plans (DMP) are often confused with credit consolidation because they have some similarities. For instance, both programs entail converting several debts into one monthly payment for ease of tracking. However, you still owe the original creditors when you enroll in a debt management plan (DMP). Conversely, you only owe one entity when you participate in a debt consolidation loan. If you’re considering a DMP in Toronto, Ontario you must have a steady source of income.

The average debt (excluding mortgages) in Toronto is $19,944 as of Q3 2023, with a delinquency rate of 1.53%. This is a YoY increase of 34.15% in delinquency rates, which means more people are not able to keep up with their payments compared to just a year before. Torontonians facing that amount of debt are likely to benefit from taking part in a debt management plan. This would also depend on whether you have funds invested elsewhere, like in your home or in registered savings accounts.

While DMPs serve those with more than $10,000 of debt, homeowners may have the option to cash out equity instead. Likewise, individuals who have funds in their RRSP could decide to use those funds to pay off the debt in lieu of enrolling in a debt management plan. Speak to a counsellor at a non-profit credit counselling agency in Toronto, Ontario to determine if a DMP is the right option for you.

Debt consolidation options in Toronto.

It’s not uncommon for citizens, including those living in Toronto, Ontario, to fall on hard times. If you’re experiencing difficulty keeping up with your financial obligations, debt consolidation may be your best option to get back on track. As such, consolidating your unsecured debts can make managing your payments easier.

For example, multiple credit card debts and other liabilities combine into a single monthly payment. This makes it easier to prepare for and remember when payment is due every month. In addition, that single payment can be more manageable, with a lower interest rate than the existing rates on your different credit accounts.

Many people also use a line of credit (LOC) to consolidate their debts into a single monthly payment at a relatively lower rate of interest. It looks like more people are partaking in this option. The outstanding balance on LOCs in Toronto jumped from $8.52 billion in Q4 2022 to $9.56 billion in Q4 2023. An increase of 12.2% in a single year.

In terms of average credit card debt per capita, Toronto ranks 3rd in Canada, with an average of $3,428.63. Toronto has a relatively higher level of credit card debt, due to the highest cost of living in the region. With such significant credit card debt levels, many Torontonians are also taking advantage of the lower interest from a balance transfer as a way to consolidate their debt.

While there are different ways to consolidate your debt, the most common way is through procuring a loan. However, your ability to qualify for a consolidation loan depends on your current credit score. Learn more about the debt consolidation process in Toronto, Ontario here.

Consumer Proposals in Toronto, On.

To file a consumer proposal, Toronto residents must go through a Licensed Insolvency Trustee in the area. Consumer proposals allow their participants to pay back less than what they owe to their creditors. Despite how good that sounds, it comes with some drawbacks and should be a last resort, much like bankruptcy. Many Canadians are opting for consumer proposals over bankruptcy, with a 28.3% increase in consumer proposals from 2022 to 2023 (12-month period calculations).

In 2023, around 14,996 people filed for consumer proposals in the Greater Toronto area. In fact, 87% of all insolvency filings in the Greater Toronto Area were consumer proposals, higher than Ontario’s 81% rate as well as 79% across Canada.

Paying less than what you owe at a lower interest rate comes with some heavy consequences. For one, your credit takes a hard hit. In addition, the consumer proposal will remain on your credit report for up to three years after you complete the five-year program. This can make acquiring credit or buying a home or auto more difficult.

How Bankruptcy works in Toronto.

Many people living in the Greater Toronto Area can find it difficult to keep up with the cost of living. If your debts have been piling up to an unmanageable amount, declaring bankruptcy might be the solution to your money troubles. The numbers clearly show that many Torontonians are finding value in Bankruptcy, Consumer bankruptcies increased by 25% from 2022 to 2023.

However, one must never take bankruptcy lightly, as it is only a last resort.

Remember, declaring bankruptcy gets most of your debts forgiven, however, you forfeit most of your valuable assets in return. In addition, you will no longer experience wage garnishments. Conversely, you may not be able to obtain credit for seven years, and there is a limit on how much you can earn during bankruptcy. If you’re thinking about filing for bankruptcy in Toronto, Ontario call us to speak with a professional who can help you make an informed decision.

You are not alone!

In Toronto, debt relief comes in many forms. Each year, many Torontonians of all socioeconomic backgrounds reach out to debt.ca to sift through them and decide which one is best for them. On average, these clients were struggling with $21,384 of debt, but now have the help they need to get their finances, and their life, back on track. Reach out for a free consultation call on Toronto debt relief options that you could qualify for, and understand how to get out of debt.