Credit counselling in Canada: services, costs and questions

Arrive with one immediate goal, such as understanding minimum payments or making a realistic budget. Ask the counsellor to explain what they can do, what they cannot do and whether there is any cost before the meeting starts. You should leave knowing the proposed next step, not just having supplied your contact information.

FCAC recommends checking reputation and counsellor qualifications. There is no blanket legal requirement for specialized training to call oneself a credit counsellor, so do not treat the title alone as proof of expertise. Ask about training, relevant experience, complaints handling and the organization’s legal name. Non-profit status alone does not answer whether a service costs money.

A debt management plan is an arrangement for repaying participating creditors, generally including the principal in full, with possible interest relief. Creditors may decline to participate. It is not a formal insolvency filing and does not have the same legal power to stop collections. Ask for the specific creditor list, payment schedule and treatment of any account left outside the plan.

DebtHelpers does not charge consumers for using its enquiry form. That does not mean every professional service discussed later is free. Before accepting an arrangement, request the complete fee schedule and ask how fees affect the money reaching creditors. Record who receives the payment and how you get statements. A conversation is not permission for an unexplained recurring charge.

A proposed payment needs to fit real life. Include irregular but necessary expenses such as winter utilities, school costs or essential repairs, rather than submitting a best-case month. If the plan relies on money you do not reliably receive, say so. A clear explanation of the shortfall is more useful than agreeing to a schedule you already expect to miss.

If the proposal involves formal insolvency, ask a Licensed Insolvency Trustee. If you have been served with a legal claim or face a deadline, seek appropriate legal advice promptly. Ask the counsellor which parts of your situation are outside their service and where specialist input is needed. General repayment guidance should not be mistaken for legal representation.