Are you struggling to make ends meet? You are not the only one. Surprised? “More than half of Canadians express concern that interest rates may not fall quickly enough to provide the financial relief they need (56%),” according to the MNP Consumer Debt Index. Is this you? If you find yourself in debt in the Northwest Territories, don’t worry! Resources are available to help.
Debt Relief Programs for the Northwest Territories
Advice is available across the province by either telephone or virtual meetings. However those in Yellowknife will have better access to support in-person.
1. Consolidated Credit Counseling Services of Canada
Consolidated Credit (CCC) delivers personalized financial support and debt counseling to assist individuals in managing their debt effectively. Their debt management programs consolidate debts (unsecured debts, that is) into a single, feasible payment. That’s right; just one! These plans often feature reduced interest rates, easing the repayment process. CCC also offers ongoing assistance with budgeting and financial planning for individuals.
Eligibility: Any resident of the Northwest Territories holding unsecured debt
Benefits: With direct access to professional financial guidance, CCC can help lower your interest rate and simplify your debt payments.
More information: Contact CCC at https://www.consolidatedcreditcanada.ca/
Find out what we think of CCC: https://inflationcalculator.ca/consolidated-credit-counseling-canada-legit-debt-relief-service-read-our-review/
2. Credit Counselling Society (CCS)
Giving FREE(!) debt counseling and financial education, the Credit Counselling Society is a non-profit helping NWT residents manage their debts. They offer debt management programs, budgeting advice, and creditor negotiations to help reduce financial stress.
Eligibility: CCS provides service to residents of the Northwest Territory who hold outstanding unsecured debt
Benefits: Guidance for creditor negotiations, debt management plans, and debt consolidation options. Most importantly, they offer NO COST personalized advice.
More information: Visit the Credit Counselling Society webpage at https://nomoredebts.org/contact-us/locations or contact by telephone at 1-888-527-8999
3. Northwest Territories Legal Aid Commission
The Northwest Territories Legal Aid Commission provides free legal services to eligible residents. Individuals facing financial hardship or overwhelming debt can apply, gaining legal support for managing their situation. This service also helps those with financial difficulty understand their rights and explore their options when dealing with debt.
Eligibility: Eligibility is determined based on financial need and the case’s complexity. To qualify for free service from the Legal Aid Commission, residents must meet specific income and asset thresholds.
Benefits: Provides access to legal advice. Helps residents make informed decisions regarding debt relief.
More information: Visit https://www.justice.gov.nt.ca/en/legal-aid/
4. Debt consolidation loan
Residents of the Northwest Territories seeking to consolidate their debts can turn to a debt consolidation loan. This loan can combine many debts into a single one. Often with a lower interest rate! This makes managing payments less stressful.
Eligibility: A debt consolidation loan may be available to NWT residents with stable incomes and high credit scores.
Benefits: Consolidates debts into one loan for simplified repayment. The potential to reduce overall interest costs.
More information: Talk to your local credit union or bank for specifics about debt consolidation loans. For example, Residents can apply for debt consolidation loans through financial institutions like CIBC or RBC.
5. Government of the Northwest Territories – Financial Assistance Programs
The Government of the Northwest Territories offers various assistance programs for residents facing financial hardship. While not explicitly focused on debt relief, these programs can help stabilize finances and prevent further debt accumulation.
Eligibility: The service is for residents of the Northwest Territories.
Benefits: Reduces the risk of accumulating further debt and offers immediate financial support for essential needs. These needs include housing and utilities costs.
More information: Visit https://www.gov.nt.ca/en/programs-and-services for more details.
6. Licensed Insolvency Trustees (LIT)
As federally regulated professionals, Licensed Insolvency Trustees (LITs) help residents of the NWT explore options for debt relief. This includes consumer proposals and bankruptcy. LITs work with individuals to negotiate debt solutions with creditors or administer the bankruptcy process, helping to reduce or eliminate debt.
Eligibility: NWT residents who struggle to pay their unsecured debts
Benefits: Legally binding debt relief solutions and protection from creditors. They also offer structured repayment plans through consumer proposals or debt elimination through bankruptcy proceedings.
More information: Consult a local LIT: https://www.ic.gc.ca/app/scr/tds/web/?lang=eng
Assisting with debt relief, BDO can help with consumer proposals and bankruptcy. They also guide individuals in managing their finances through professional financial counseling.
- Address: Yellowknife (see https://debtsolutions.bdo.ca/offices/yellowknife/ for more information)
- Phone: 1-877-909-9216
MNP provides debt relief services to Canadians throughout the country. Their offerings range from debt consolidation and financial counseling to restructuring and eliminating debt. They can assist with consumer proposals or bankruptcy proceedings.
- Address: Yellowknife (visit https://mnpdebt.ca/en/offices?filter=offices®ions=Northwest%20Territories for more information)
- Phone: (toll-free) 1-866-465-1155
7. Consumer Proposal
A consumer proposal takes place between an individual and their creditors. It is a legally binding agreement allowing for PARTIAL debt repayment over time. Yes, really! This agreement will enable you to reduce the amount you owe to your creditors. That means you repay less over time.
A Licensed Insolvency Trustee (LIT) administers this option. The solution offers an alternative to bankruptcy for those struggling with unsecured debts.
Eligibility: A consumer proposal is suitable for those with a stable income and unsecured debt under $250,000. This amount does not include your mortgage.
Benefits: A consumer proposal is a bankruptcy alternative. It allows you to maintain your assets while decreasing your debt.
More information: Contact a LIT in the Northwest Territories for advice.
8. Bankruptcy
Bankruptcy is a legal process that eliminates most unsecured debts and provides a new start. It is an option available to Canadians, including those in the Northwest Territories. A Licensed Insolvency Trustee (LIT) administers this process. They will help individuals with the liquidation of assets and repayment to creditors.
While this process eliminates your debt, it does have serious consequences. Declaring bankruptcy, for example, impacts your credit which can affect your ability for debt financing in the future. It should be a last-ditch effort only. I beg you, use this only after you have exhausted your other options.
Eligibility: For those who find themselves insolvent, bankruptcy may be a suitable option. This means individuals who cannot fully repay their debt and have no alternative viable debt relief options.
Benefits: Bankruptcy offers immediate relief from creditors and a new start financially. It also significantly reduces or eliminates most outstanding debts.
More information: Speak with a LIT in the Northwest Territories.
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor's degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.
