KNOW THE DIFFERENCE
A loan and a repayment plan are not the same.
Start with how each works, who provides it and what to ask.
Consolidation loan
New borrowing used to pay existing balances.
- Who to speak with
- A lender or appropriately authorized broker
- A useful question
- What is the total repayment, including interest and fees?
Debt management plan
A voluntary repayment arrangement with participating creditors.
- Who to speak with
- A credit counselling organization
- A useful question
- Which creditors participate, and what fees apply?
Consolidation: a new credit product
Read the key facts before you choose.
Read the full details
Consolidation: a new credit product
A consolidation loan pays off balances using new borrowing. Approval and terms come from the lender. Compare the complete repayment cost, not only the advertised monthly payment.
Debt management plan: an arrangement with creditors
Start with the bill that is hard to pay.
Read the full details
Debt management plan: an arrangement with creditors
A counsellor proposes a repayment arrangement to creditors. You usually repay the full debt; interest relief and creditor participation are not guaranteed. A plan may carry fees and does not cover every debt. It is not the same as a consumer proposal.
How are they different?
See what is the same and what is not.
Read the full details
Compare the same facts for both options
Ask for the debts included, payment schedule, total cost, credit implications and consequences of a missed payment. Put the answers side by side. “One lower payment” is not enough information to decide which route deserves a closer look.
What to have ready
- Is new borrowing involved?
- Which debts remain outside the arrangement?
- What is the full cost, including service fees?
- What happens if your income falls or you miss a payment?
You do not need account numbers, your SIN, bank passwords, or files to start.
Which route does this page send my enquiry to?
You choose. The primary button requests guidance about a debt management plan; the separate consolidation button starts a borrowing enquiry. Neither button means that a provider has accepted you or that a plan has begun.