Are you a Nova Scotia resident dealing with overwhelming debt? I know you may feel alone, but you’re not. I promise. Many Nova Scotians are facing rising levels of consumer debt.
According to the MNP Consumer Debt Index, 51% of those in Atlantic Canada “are concerned that interest rates may not decline quickly enough to provide the financial relief they need.” Residents in the province, like many Canadians, are struggling with credit card debt, personal loans, and other forms of unsecured debt.
Is this you? Are you overwhelmed? Unsure of where to turn? If so, this guide is for you. It will introduce you to some of the best debt relief resources in Nova Scotia. From credit counseling services to legal options like consumer proposals and bankruptcy, we’ll help you explore the paths that can lead you toward financial recovery.
Debt Relief Programs for Nova Scotia
While in-person counseling is readily available in Halifax, there is access to deft relief advice for residents throughout Nova Scotia.
1. Consolidated Credit Counseling Services of Canada
Consolidated Credit provides customized financial guidance and credit counseling to assist individuals in managing their debt. Their debt management plans combine unsecured debts into a single, more manageable payment. That’s right, ONE payment. These plans often include reduced interest rates, making staying on top of costs easier. Additionally, CCC offers ongoing support with budgeting and financial planning.
Services: Debt management programs, credit counseling, debt consolidation, and financial education resources
Eligibility: Those with unsecured debt who reside in PEI
Benefits: Expert financial advice, simplified monthly payments, and lower debt amounts
More information: https://www.consolidatedcreditcanada.ca/
See our review of CCC here: https://inflationcalculator.ca/consolidated-credit-counseling-canada-legit-debt-relief-service-read-our-review/
2. Credit Counselling Services of Atlantic Canada (CCSAC)
CCSAC is a non-profit that offers free(!) and confidential credit counseling for Nova Scotians struggling with debt. Certified counselors within the organization help clients create a budget and manage their debt. They can even help you explore consolidation options. CCSAC also offers debt management programs (DMPs) to help simplify debt payments.
Services: Credit counseling, debt management programs, and budgeting advice. They even provide financial education.
Eligibility: Available to all Nova Scotia residents dealing with unsecured debts.
Benefits: Free consultations, personalized debt solutions, and ongoing financial guidance
More information: Visit https://business.halifaxchamber.com/members/member/solve-your-debts-com-11697
3. Orderly Payment of Debts (OPD) Program
The OPD program helps Nova Scotians manage their unsecured debt by consolidating them into one monthly payment. Yes, ONE. This payment has a reduced interest rate, set at 5%.
Credit Counselling Services of Atlantic Canada administers the program and ensures protection from creditor actions.
Services: Debt consolidation, lower interest, and protection from collection activities
Eligibility: Residence in Nova Scotia. Those with unsecured debt who are unable to meet their financial obligations.
Benefits: Lower interest rates (That’s right!), creditor protection and simplified monthly payments
More information: https://www.solveyourdebts.com/
4. Debt consolidation loan
Combining several loans into one debt consolidation provides funds at a lower interest rate. Remember, lower rates equal lower payments. Nova Scotians can access a debt consolidation loan through their local financial institutions.
Eligibility: Residents of Nova Scotia with good credit and stable income are often ideal applicants for a debt consolidation loan.
Benefits: Debt consolidation, simplified payments, and the potential for reduced interest.
More information: Contact a local bank or credit union for details.
5. Licensed Insolvency Trustees (LITs) in Nova Scotia
Licensed Insolvency Trustees (LITs) are federally regulated professionals who provide formal debt relief services. This includes, but is not limited to, consumer proposals and bankruptcy. A LIT will assess your financial situation and help negotiate with creditors to reduce (or ideally eliminate) your debts through structured repayment plans.
Services: Consumer proposals, bankruptcy, financial assessments and debt restructuring
Eligibility: Nova Scotia residents facing insolvency. Or those who are unable to manage their unsecured debts.
Benefits: Legal protection from creditors and the potential for debt reduction
More information: https://www.ic.gc.ca/app/scr/tds/web/?lang=eng
BDO Debt Solutions
Offering financial counseling, BDO Debt Solutions provides debt relief options for Canadians. They also help those in Nova Scotia manage or eliminate debt with a consumer proposal or bankruptcy.
- Address: 8 offices in Nova Scotia (see https://debtsolutions.bdo.ca/locations/ for details)
MNP Debt
MNP provides debt relief options in Nova Scotia and throughout Canada. The firm can help with debt consolidation and restructuring. They also have experience with consumer proposals and bankruptcy proceedings.
- Address: 19 offices throughout Nova Scotia (visit https://mnpdebt.ca/en/offices?filter=offices®ions=Nova%20Scotia)
6. Consumer Proposal
As a legal contract, a Licensed Insolvency Trustee (LIT) administers a consumer proposal. It is an agreement between you and your creditors allowing you to repay part of your outstanding debt over a defined time. This is often over a period of five years. But what is the benefit of a consumer proposal? Usually, these agreements allow for repayment at a lower amount. This means you can pay back a SMALLER amount over time.
Eligibility: A consumer proposal is for individuals with under $250,000 in outstanding debt. To be eligible, you must have a consistent income and difficulties paying your debt in full.
Benefits: Reduce debt while protecting your assets (i.e., avoid bankruptcy).
More information: LIT in Nova Scotia
7. Bankruptcy
In Nova Scotia, bankruptcy is a formal legal process that lets individuals eliminate most of their debts. While this may seem appealing, it is a last-ditch effort only. Seriously, I mean it! Bankruptcy is a process only for those who can not fully repay their debts and have no other options.
How does bankruptcy work? In Nova Scotia, a Licensed Insolvency Trustee (LIT) will assess your personal situation and assist you through the process. Not only will you need to surrender certain assets, but you will also need to make regular payments. Once the bankruptcy process is complete, your unsecured debts are discharged.
Eligibility: Bankruptcy can be a suitable option for Nova Scotians who are insolvent. It is for those unable to repay their debts. It has serious financial consequences, so exhaust your other options first.
Benefits: The bankruptcy process will eliminate most of your unsecured debts, providing relief from creditors.
More information: For personalized advice, speak with a LIT in your area.
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.
