Consolidated Credit Canada (www.consolidatedcreditcanada.ca) is the country’s largest non-profit when it comes to debt relief. With offices in almost every province in territory, they provide credit counseling and debt consolidation services to Canadians who want to lower and/or pay off their debt. In this review, we’ll go over the organization’s background, services, customer reviews and more, in order to help you decide if you should work with them to resolve your debt issues.
Brief Overview
To start, let’s address the legitimacy of this organization: Consolidated Credit Canada has accreditation from reputable organizations (such as the Canadian Association of Credit Counselling Services, the CCA and the Better Business Bureau, the BBB). They have been operating in Canada for many years, offering debt relief services such as debt consolidation, debt management plans (DMPs), credit counseling, and financial education. Here are more details:
- Official Name: Consolidated Credit Counseling Canada
- Website: https://www.consolidatedcreditcanada.ca/
- Founded in: 2005
- Phone Number: 1 (844) 402-3073
- BBB Rating: A+
- Google Reviews: (1,418 reviews)
- TrustPilot Reviews: 4.9/5 Stars (6,709 reviews)
- Headquarters: 505 Consumers Road, Suite 400 Toronto, Ontario M2J-4V8
- Office Locations:
- Alberta (Calgary, Edmonton, Grand Prairie, Medicine Hat, Red Deer)
- British Columbia (Abbotsford, Burnaby, Richmond, Surrey, Vancouver, Victoria)
- Manitoba (Winnipeg)
- New Brunswick (Fredericton, Moncton, Saint John)
- Newfoundland & Labrador
- Nova Scotia (Dartmouth, Halifax)
- Northwest Territories
- Nunavut
- Ontario (Brampton, Hamilton, Kitchener, London, Mississauga, Oshawa, Ottawa, Peterborough, Toronto, Whitby)
- Prince Edward Island (Charlottetown)
- Quebec (Gatineau, Laval, Montreal, Saint Hubert)
- Saskatchewan (Moose Jaw, Saskatoon)
- Yukon
Can They Help Clear Your Debt?
Yes. They are Canada’s largest non-profit when it comes to debt consolidation and relief. Also, they are NOT a lender, so you can rest assured that they won’t be selling you any high-interest consolidation loans like many other Canadian ‘debt relief companies.’
Consolidated Credit’s main avenue to reduce your debt is by reducing or eliminating interest, and/or by creating a Debt Management Plan (DMP), amongst other strategies.
They can often help you reduce or eliminate debt without damaging your credit profile like by choosing a Consumer Proposal or Bankruptcy. All in all, their reviews, certifications and services suggests they are a legit reputable company that can help with debt troubles.
👍Pros of using Consolidated Credit Canada:
- They’re Non-Profit: Since Consolidated Credit Canada is a non-profit, they’re focused on actually helping you get out of debt rather than making a profit. This usually means their fees are lower than what you’d find with for-profit companies.
- Free First Consultation: You can get a free consultation to assess your financial situation without any commitment. This is great if you’re just exploring your options and aren’t ready to jump into anything.
- Trusted and Accredited: They’re accredited by reputable organizations like the Canadian Association of Credit Counselling Services and have an A+ rating with the Better Business Bureau. That gives me confidence that they’re legit.
- Lots of Services: They offer more than just debt consolidation. You can also get help with budgeting, housing counseling, student loan advice, and even financial education, so it’s not a one-size-fits-all approach.
- They Don’t Push Loans: Unlike some other companies, they’re not going to try to sell you high-interest consolidation loans. Instead, they work on reducing or eliminating interest through negotiations with your creditors.
- Accessible Across Canada: With offices in almost every province and territory, they’re accessible no matter where you live. You’ll find them in any big city, including Toronto, Montreal, Vancouver, Calgary, Edmonton, Victoria, Halifax, Saskatoon, Regina, Winnipeg, Ottawa, and more.
- Good Reviews: They have strong reviews on Google and Trustpilot, which shows they’ve been able to help a lot of people successfully.
👎Cons of using Consolidated Credit Canada:
- Your Credit Score Might Take a Hit: If you go for a debt management plan, just know it could impact your credit score since creditors often report these plans to the credit bureaus. However, it’s usually less damaging than bankruptcy or a consumer proposal.
- Monthly Fees: While the first consultation is free, setting up a debt management plan does come with a setup fee and monthly administration fees (ranging from $100 to $350 per month depending on the size of your debt). If you’re already in a tight spot financially, this might be something to consider.
- Not All Debts Qualify: If you have secured debts like a mortgage or car loan, they can’t be included in a debt management plan. So, if most of your debt is tied up in things like that, this might not be the right solution for you.
- It’s a Long-Term Commitment: Debt management plans can take anywhere from 2 to 5 years to complete. So, if you’re looking for a quick fix, this isn’t it. Bankruptcy or a consumer proposal might be better.
- Mostly Remote Services: Even though they have offices across the country, a lot of the work is done over the phone or online. If you’re someone who prefers in-person support, this might be a downside.
- No Legal Protection: Unlike filing for bankruptcy or a consumer proposal, working with a credit counselling agency doesn’t legally protect you from creditors. This means they can still take actions like wage garnishments or lawsuits.
List of Services Provided
Now, Consolidated Credit Canada offers a variety of services aimed at helping Canadians manage and reduce their debt, improve their financial literacy, and regain control over their finances. Here’s an overview of the key services they provide:
1. Free Credit Counseling
Their certified debt/credit counselors can provide personalized advice on budgeting, debt management, and financial planning based on your own specific situation. They offer a free initial consultation to assess your financial situation and recommend appropriate debt solutions for you.
2. Debt Consolidation
They can help negotiate with your creditors and consolidate multiple debts into a single monthly payment, often with reduced interest rates and fees.
3. Negotiation with Creditors
Consolidated Credit are experts when it comes to negotiating with creditors to stop interest, lower debt and waive certain fees.
4. Debt Management Plan (DMP)
They can create a personalized DMP for you and help manage the distribution of payments to creditors on your behalf, simplifying the repayment process.
5. Credit and Debt Education
They provide educational information, including workshops and webinars, on topics like budgeting, credit management, and financial planning.
Their website also offers various tools and calculators to help individuals understand and manage their finances.
6. Bankruptcy and Consumer Proposal Referrals
If necessary, and ONLY as an option of last resort option, they can refer Canadians to a reputable Licensed Insolvency Trustee (LIT) in their city or province for further assistance with bankruptcy or consumer proposals.
7. Housing Counseling
They offer counseling to help homeowners avoid foreclosure and manage their mortgage payments properly.
They also provide resources and counseling for first-time homebuyers to help them navigate the mortgage process and make informed decisions.
8. Student Loan Counseling
They offer advice and solutions for managing student loan debt, including repayment strategies and consolidation options specifically designed for students.
9. Budgeting Assistance
Consolidated Credit’s counselors help create customized budget plans to improve financial management and savings.
Consolidated Credit Canada’s services provide valuable and much-needed support for Canadians facing financial difficulties, helping them reduce their debt and achieve long-term economic stability.
Consolidated Credit FAQ
- Q: Is Consolidated Credit Canada a non-profit organization?
A: Yes. Consolidated Credit Canada is Canada’s largest non-profit credit counselling agency.
- Q: Is there a cost for an initial consultation?
A: No. The initial consultation is free of charge.
- Q: How do I get started with Consolidated Credit Canada?
A: You can start by calling their toll-free number at 1(844) 402-3073 or completing an online application.
- Q: What are the fees associated with a debt management plan (DMP)?
A: There is often a setup fee for a debt management plan. Monthly administration fees will also apply, though these costs vary based on the size of your debt and your financial situation.
- Q: Are there any upfront fees?
A: No, Consolidated Credit Canada does not charge upfront fees.
- Q: How do the fees compare to other debt relief options?
A: Generally, the fees for a debt management plan are much lower compared to other options like debt settlement or bankruptcy.
- Q: How does a debt management plan (DMP) work?
A: A debt management plan involves consolidating your debts into one monthly payment, often with lower interest rates.
- Q: Will a debt management plan affect my credit score?
A: While it may initially impact your credit score, it’s much less damaging than a bankruptcy or consumer proposal. Also, successfully completing a debt management plan can improve your credit over time.
- Q: How long does a debt management plan typically take?
A: The length of a debt management plan depends on factors like the amount of debt and your monthly payment. It can range from 3 to 5 years in many cases.
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.
