Credit Card Debt in Canada
If credit card debt is keeping you up at night, give our team a call. We will find a debt solution that works for you.
Safe, secure & confidential
Safe, secure & confidential
Credit card debt help
Can’t keep up with your credit card loans? We have a debt relief solution to help you start your life fresh.
Harris & Partners Inc. is a Licensed Insolvency Trustee offering consumer proposals and personal bankruptcy support across Canada. We’ve helped many people and families get their lives back on track. Talk to one of our Licensed Insolvency Trustees and get help today.
Should I file bankruptcy for credit card debt?
Filing for bankruptcy is one quick way for individuals who can’t pay their loans to get debt relief. Once bankruptcy is declared, you will get legal protection from your creditors and the harassment will stop.
The first step is to meet with a Licensed Insolvency Trustee and Restructuring Professional at Harris & Partners Inc. who is qualified and licensed by the federal government to administer the bankruptcy process. The trustee will evaluate your financial situation, educate you about how bankruptcy works and guide you through the process, including filing the paperwork at the Office of the Superintendent of Bankruptcy Canada (OSB). Once this is done, the creditors are required to deal directly with the trustee.
Filing for bankruptcy is a legal process with certain ground rules
- You’ll surrender your credit cards to the trustee for cancellation.
- You are required to report your income to the trustee to determine if you have to make surplus income payments to your creditors.
- After you are discharged from bankruptcy, it stays on your record for 6 years. Credit can be re-established by obtaining a secured credit card and making regular monthly payments to clear the balance.
- You will also be required to attend two financial counselling sessions. The purpose of these sessions is to help you understand the causes of your bankruptcy and to assist you in managing your financial affairs in the future.
Securing credit card debt relief through a consumer proposal
A consumer proposal is another debt relief solution that can help deal with your financial situation. Creditors, including credit card companies and the Canada Revenue Agency (CRA), vote on whether to accept a consumer proposal.
You can work with one of our experienced Licensed Insolvency Trustees at Harris & Partners who will determine your eligibility, negotiate with your creditors and file the documents on your behalf at the OSB.
A consumer proposal is an offer made by debtors under the Bankruptcy and Insolvency Act (BIA) to modify their payments to creditors.
Debtors may propose paying a lower amount each month over a longer period of time, or paying a percentage of what they owe.
This proposal must be completed within 5 years. Certain rules apply such as:
- You have to turn in all your credit cards.
- You will also be required to attend two financial counselling sessions.
- It’s removed from your credit report 3 years after you complete it or 6 years after you file, whichever comes first.
- You have to keep up with your proposal payments. If you fall three payments behind, the proposal is automatically annulled.
- The benefit of making a consumer proposal is that you will stop accruing interest, achieve lower payments and negate further legal action from creditors. In addition, it doesn’t carry the same stigma as a bankruptcy, and it is better than a bankruptcy for your credit.
Our Licensed Insolvency Trustees can help you resolve your financial troubles. Whether it’s personal credit card debt or business-related debt, we’ll help you find the right debt relief solution to start over.
Meet with one of our trustees to get started; we have offices across Canada.
Example Savings: Credit card debt relief
Your Potential Debts:
Your monthly repayments over a 60-month period would be
Before Help
$1,409
After Help
$210
Monthly payments are determined based on individual financial factors
How Much Could I Save?Helping Canadians with credit card debt relief and more
Credit card debt FAQs
Can you keep a credit card with a consumer proposal?
If you have filed for a consumer proposal, you will need to turn-in all credit cards with debt.
However, you can keep a credit card, and go through a consumer proposal process, if the card has a balance of zero.
Of course, it may be prudent to also close this account to avoid any temptation to rely on bad credit.
Is it a good idea to consolidate credit card debt?
It depends on your situation. If you can roll your credit card debts into a personal loan with a lower interest rate and an affordable monthly payment, consolidation can make repayment easier. But it doesn’t reduce what you owe, and a longer loan term can mean paying more interest overall.
Be wary of debt settlement companies that offer to “consolidate” or cut your debts for you. They aren’t Licensed Insolvency Trustees, they can’t legally stop creditors from calling or suing you, and many charge fees upfront, even if no debts are settled.
If you can’t afford a consolidation loan, a consumer proposal may be a better option. It’s a legal process, filed by a Licensed Insolvency Trustee, that can reduce what you owe, stop interest and stop most collection action.
How does credit card debt affect getting a mortgage?
This very much depends on the size of the credit card debt you’re carrying.
If the debt is relatively small and manageable and you’ve never had issues with making minimum payments in the past, then your mortgage application shouldn’t be affected.
However, if you’ve failed to make credit card repayments in the past and have a large credit card debt, then your mortgage application might be affected.
Lenders will take into account your debt-to-income ratio which evaluates your gross income against the amount of debt you have. In general, lenders will expect your mortgage, housing expenses and debt repayments to be no more than 40% of your gross income, so it’s always worth considering this before applying for a mortgage.
Browse debt options in Canada
Why choose us for consumer proposals in Ontario?
Our Licensed Insolvency Trustees can provide a customised consumer proposal that could shrink your debt by up to 80%.
Our multilingual team offers debt support in Farsi, Portuguese, Italian, Tamil, and more, so you can feel comfortable every step of the way.
With offices in nine provinces, we offer in-person debt support across Canada—from Atlantic provinces to Ontario to British Columbia.
Take control of your credit card debt with Harris & Partners
If you’re struggling to keep up with your credit card loans and can’t get on top of the payments, get in touch with our team.
We have years of experience in helping people just like you take control of their credit card debt. Our Licensed Insolvency Trustees can help you get a full view of your situation, and support you in finding a long-lasting debt solution. Financial freedom is a phone call away.
It's never too late to obtain debt help. Book your free consultation today
- Phone number
- 800-268-8093
- hello@harrispartners.ca
