A debt management plan is a service provided by a credit counselling agency, giving you a simplified payment plan for your debts and some relief from interest costs. Most Credit counsellors are not-for-profit agencies created to help individuals experiencing financial distress.
First, a credit counsellor meets with you to assess your situation, help you make a budget, and give you some advice about dealing with your money problems. This can be a great help if money management skills will be enough to get your finances in order.
Then, if your debts are so large that you can’t handle them on your own through budgeting and expense reduction, the credit counsellor will work out a debt management plan with your unsecured creditors. You will then give the agency a regular payment, which they will distribute to your creditors.
In a debt management plan:
A debt management plan is best suited for you if:
To contact a credit counsellor, do one of the following:
If you can repay only a portion of your debt, a consumer proposal may be a better option.
If you cannot reasonably be expected to make any significant payments toward you debt, a bankruptcy may be necessary.
We recommend that you contact us today, to review your situation and help you decide which option is best for you. If money management skills and a debt management plan look like a feasible solution, we will put you in touch with a credit counsellor in your area.