Debt Relief Solution
Debt Management Plan (DMP): Reduce Interest, Stay Organized
Agency‑administered payment plan with interest relief from participating creditors.
See if a DMP could work
We’ll match you with a reputable non‑profit where available.
What It Is
What it is
- A voluntary repayment program through a credit counselling agency. You make one payment to the agency; they distribute to participating creditors.
- Often includes interest relief; you repay full principal over 3–5 years.
Advantages and Considerations
Advantages
- One organized payment with reduced interest.
- Budget coaching included; no court filing.
Considerations
- No legal stay; non‑participating creditors may continue collections.
- You repay 100% principal; modest agency fees apply.
Eligibility Requirements
- Stable income to retire principal in 3–5 years; creditors willing to participate.
Costs & Fees
- Modest set‑up/monthly admin fees; interest typically reduced to 0–10% by many creditors.
Credit Impact
- A DMP may be noted on your file; consistent on‑time payments drive recovery over time.
Included and Excluded Debts
Understanding which debts qualify for this solution
Included Debts
- Most credit cards/lines; retail cards; some payday/installment loans (case‑by‑case)
Excluded Debts
- Secured loans; many tax debts; student loans vary by creditor policy
Estimate a DMP Payment
Enter your total unsecured debt to see typical DMP payment ranges and interest relief.
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Creditors choose whether to participate. This estimate is informational only.Step-by-Step Process
- Assessment & budget with a counsellor.
- Agency proposes a DMP to creditors.
- Make one monthly payment to the agency.
- Complete plan; receive confirmations.
Preparation Checklist
- ID, pay stubs, budget
- Statements for all consumer debts
- Collection notices (if any)
Timeline and Duration
- Week 0–2: assessment & proposals sent
- Month 1+: payments begin (3–5 years typical)
Alternative Solutions
- Consumer proposal (legal stay; reduce owed amount).
- Consolidation loan if you qualify for a lower rate.
Will collections stop? Creditors who accept typically stop interest and collections; others may continue.
Important Warning
Work with reputable non‑profits; avoid high‑fee for‑profit ‘programs’ masquerading as DMPs.
Common Myths and Misconceptions
- Myth: DMPs are the same as proposals — Reality: DMPs are voluntary and repay full principal; proposals are legal filings that reduce what you owe.
Provincial Variations
Debt relief rules differ by province. Expand any province to see key details and service-specific notes.
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland and Labrador
Nova Scotia
Ontario
Prince Edward Island
Québec
Saskatchewan
References
- FCAC: Debt help & counsellors (DMPs): https://www.canada.ca/en/financial-consumer-agency/services/debt/debt-help.html
- OSB on getting out of debt: https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/your-debts-are-getting-out-control