Understand Your Debt
List balances, interest rates, minimum payments, and whether each debt is secured or unsecured.
Clear, practical information
Your Guide to Debt-Relief Options in Canada
Learn how common debt solutions differ, what each one is designed to do, and which questions to ask before choosing your next step.
Start with the basics
Not Every Debt Problem Needs the Same Solution
The right option depends on your income, debt level, assets, credit, interest costs, and ability to make regular payments.
Review Your Cash Flow
Compare reliable monthly income with essential expenses and realistic debt payments.
Compare the Trade-Offs
Consider payment size, total cost, credit impact, asset treatment, and whether legal protection is needed.
Common solutions
Five Paths People Commonly Explore
Budget and Repay Directly
Best suited to debt that is still manageable without borrowing or formal relief.
Debt Consolidation
Combines several debts into one payment, usually without reducing the principal balance.
Debt Management Plan
A structured repayment arrangement that may reduce or stop interest, depending on creditor participation.
Consumer Proposal
A formal offer to repay part of eligible unsecured debt through a Licensed Insolvency Trustee.
Bankruptcy
A formal insolvency process that may discharge many unsecured debts when repayment is no longer realistic.
Professional Review
A qualified professional can help identify which solutions are available based on your full situation.
When to get help
Warning Signs That Debt Is Becoming Unmanageable
It may be time to review your options when debt payments are interfering with basic living costs or balances continue growing despite regular payments.
Start the Assessment- You rely on credit for essential expenses
- You make payments but balances do not fall
- You miss payments or use one debt to pay another
- Collection calls or garnishment threats have started
- You cannot see a realistic path to repayment
Common questions
Debt-Relief Guide FAQs
What should I do first?
Gather your balances, statements, income information, and monthly expenses so you can compare options using accurate numbers.
Does every solution reduce the amount I owe?
No. Consolidation and many repayment plans generally focus on reorganizing repayment, while a consumer proposal may reduce eligible unsecured debt.
Who can file a consumer proposal or bankruptcy?
Only a Licensed Insolvency Trustee can file and administer formal insolvency proceedings in Canada.
Is Clearwise Solutions a Licensed Insolvency Trustee?
No. Clearwise Solutions helps Canadians explore options and connect with appropriate licensed professionals.
Clarity today, confidence tomorrow.
Get a Clearer View of Your Options
Complete our confidential assessment to take the next step.