If you are trying to work out whether debt relief is worth it, the question underneath is almost always the same: how much is the interest actually costing me, and what would change if it stopped. So rather than describe the options, I built a calculator that shows you the four main routes side by side on your own numbers. Put your balance, your rate and what you can realistically pay into the boxes below and the comparison updates as you type.
Want a human to check the numbers with you?
The calculator shows the shape of the answer. A free twenty minute assessment with Consolidated Credit Canada tells you which route you actually qualify for, at no cost and with nothing to sign.
Debt relief calculator
Enter your three numbers and the table updates as you type. Everything is worked out in your browser and nothing is sent anywhere.
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How to read what the calculator just told you
Four routes, four very different outcomes, and the gap between them is almost entirely interest.
- Carry on as you are. Your payment at your current rate. If the monthly figure does not cover the interest, the calculator says so plainly, because at that point the balance grows regardless of how long you keep paying.
- Debt management plan. This assumes the interest is cut to nothing, which is the normal outcome when a nonprofit counsellor negotiates with your creditors, and that you keep paying the same amount. You repay every dollar of principal, nothing is written off, and nothing is filed in court.
- Consolidation loan over five years. One loan at the rate you enter, paid over 60 months. Change the rate box to whatever you have actually been quoted rather than the default, because that is the number that decides whether this route helps at all.
- Consumer proposal illustration. This settles a share of the balance over five years. The 30% default is an illustration, not a quote. A real offer depends on your income, your assets and what your particular creditors will accept, and only a Licensed Insolvency Trustee can tell you that.
One number worth noticing in your own results: if the debt management plan line clears inside five years, that is usually the route to take even when a proposal shows a lower total. Plans finish cleaner. A plan comes off your credit report two years after the debts are paid, where a proposal stays three years after the final payment and a bankruptcy six years after discharge, according to the Financial Consumer Agency of Canada.
Debt relief by province and territory
What you can access, and what you would keep if the worst happened, depends heavily on where you live. Bankruptcy exemptions range from $50,000 of protected home equity in Saskatchewan down to none at all in Prince Edward Island, and three provinces have a court supervised consolidation route that the rest of the country does not. Pick your province below for the local version.
| Province or territory | Local detail worth knowing | Guide |
|---|---|---|
| Alberta | Orderly Payment of Debts at a 5% capped rate, run by Money Mentors | Read the Alberta guide |
| British Columbia | Strong credit union options and a crowded commercial market | Read the British Columbia guide |
| Saskatchewan | The most generous exemptions in Canada and a foreclosure mediation step | Read the Saskatchewan guide |
| Manitoba | Home equity protected only to roughly $2,500 in a bankruptcy | Read the Manitoba guide |
| Ontario | The deepest market and the most competition for your attention | Read the Ontario guide |
| Quebec | Three year prescription period and licensed debt settlement firms | Read the Quebec guide |
| Nova Scotia | Collectors limited to three contacts in seven days | Read the Nova Scotia guide |
| New Brunswick | Collection agencies are licensed, debt settlement firms are not | Read the New Brunswick guide |
| Prince Edward Island | No home equity exemption at all in a bankruptcy | Read the PEI guide |
| Yukon | Remote delivery and a small local market | Read the Yukon guide |
| Northwest Territories | Cost of living changes what a plan can realistically ask of you | Read the NWT guide |
City level guides are available for Calgary, Edmonton and Ottawa as well.
Which route suits which situation
- The interest is the problem, not the principal. A debt management plan is almost always the cheapest outcome. If you live in Alberta, Nova Scotia or PEI, ask about Orderly Payment of Debts too.
- Your credit is still good and a lender will beat your blended rate. Take the consolidation loan and close the cards.
- Even with zero interest the balance takes more than five years. Price a consumer proposal with a Licensed Insolvency Trustee.
- There is no realistic path to repaying any meaningful share. Bankruptcy, but only after somebody has priced the alternatives for you.
- You are not sure which bucket you are in. That is what the free assessment is for, and it is the most common honest answer.
If a proposal is the direction you are heading, there is a dedicated consumer proposal calculator on the site that works the offer out from your income, your household size and the 2026 surplus income thresholds, which is how a trustee actually does it.
If you want the broader picture before you narrow down, my roundup of the best debt consolidation and relief programs in Canada compares the main providers, and how to reduce debt in 2026 covers the ground from credit cards through to CRA arrears.
Turn the numbers into a plan
You now know roughly what each route would cost you. The next step is finding out which one you actually qualify for, and that is a free conversation rather than an application. No fee, no credit check to get an opinion, and nothing to sign at the end of the call.
Frequently asked questions
How accurate is this debt relief calculator?
The interest arithmetic is exact. Given a balance, an annual rate and a monthly payment, the time to clear and the total paid are standard amortisation maths and they are right. What is an estimate rather than a fact is the debt management plan line, which assumes creditors agree to stop the interest, and the consumer proposal line, which uses whatever settlement percentage you put in the box. Those two depend on negotiation, so treat them as the shape of the answer rather than a quote.
What interest rate should I enter?
Your blended rate across everything you owe, not the rate on your worst card. If you have $10,000 at 19.99% and $5,000 at 29.99%, the blended rate is about 23.3%. If you are not sure, your statements will tell you, and entering the highest rate you carry will simply make the comparison look more dramatic than it is.
Is a debt relief calculator the same as a consumer proposal calculator?
No, although people search for both. A consumer proposal calculator tries to estimate the settlement a trustee could negotiate, which depends on your income, your assets, your household size and your creditors. This calculator does something broader: it puts a proposal illustration next to a repayment plan, a consolidation loan and doing nothing, so you can see which direction is worth pursuing before you speak to anybody.
Does using a debt calculator affect my credit score?
Not at all. Everything here runs in your browser, no information is submitted anywhere and no credit check happens. The same is true of a first conversation with a nonprofit credit counsellor or a Licensed Insolvency Trustee: neither pulls your credit simply to give you an opinion.
What is the difference between a debt management plan and debt consolidation?
A consolidation loan is new borrowing that pays out the old borrowing, so you still owe the full amount but to one lender at one rate. A debt management plan involves no new borrowing at all. A counsellor negotiates your existing creditors down to little or no interest and you make one payment to the agency, which distributes it. If your credit has already slipped, the plan is usually the cheaper of the two because no lender will price a loan below what a nonprofit can negotiate.
How much debt do you need for debt relief to be worth it?
There is no minimum. The useful test is in the calculator output rather than the balance: if the interest is a meaningful share of what you pay each month, or if the first line shows the debt never clearing at your current payment, it is worth a conversation. In practice most people wait far longer than they should, and the waiting is what costs them.
Will debt relief stop collection calls and wage garnishment?
A consumer proposal or a bankruptcy stops both from the day it is filed, because they carry legal protection. A debt management plan does not have that force, though in practice creditors usually stand down once payments begin. If a garnishment has already started, say so in your first call, because it changes which option is realistic.
Which provinces have extra debt relief programs?
Alberta, Nova Scotia and Prince Edward Island have the Orderly Payment of Debts route, a court supervised consolidation at a capped rate of interest. Quebec has an equivalent called the voluntary deposit. Everywhere else, the main options are the four in the calculator above. The provincial guides on this page cover what is available where you live.
All our debt relief guides
Everything we have published on debt relief, consolidation, consumer proposals and the companies that offer them:
BDO Debt Solutions Review (2026): Legit, and Who Is It Actually For?
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LendCare Canada Review: Should You Get a Loan or Financing With Them?
LendCare is a Canadian point-of-sale financing company that partners with businesses across the country to offer fast and accessible loans for big-ticket items. Ranging from dental procedures to home repairs and vehicle purchases. But is it the right option for...
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How to Reduce Debt in 2026? (Credit Card, CRA Tax Debt, etc) A Guide for Canadians.
If your credit card balance, a personal loan, or a tax bill from the CRA feels heavier this year, you are not imagining it. As of Q3 2026, most Canadian credit cards charge roughly 19.99%–23.99% on balances (store cards often...
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Koho Credit Building Review – Is It Legit in 2026?
Want to rebuild your credit score and get access to a quick cash advance from the same app? That's the pitch behind KOHO's credit-building tools. The real question is whether it delivers. In this review I'll walk through how KOHO's...
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Harris & Partners Review (2026): Is This Licensed Insolvency Trustee Right for You?
If your debt has moved past the "budget harder and hope" stage, you've probably started looking at Licensed Insolvency Trustees, and Harris & Partners is one of the names that comes up. They're a long-established Canadian trustee firm that handles...
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Nyble – Legit for Loans & Credit Building? (2026 Review)
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What are Bree Loans? Should You Get One? Read Our Review…
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Money Mentors – Best Choice in Alberta for Debt Relief? Read Our 2026 Review…
Debt can get heavy fast, especially when credit cards, payday loans, lines of credit, tax debt, and collection calls start piling up at the same time. As someone who has reviewed Canadian financial products and debt relief options for more...
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Can You Get a Payday Loan in Canada While In a Consumer Proposal? Pros & Cons Reviewed
If aggressive creditors, missed payments, or a tight paycheque caused you to search for payday loan alternatives in Canada, you are not alone. Payday loans are marketed as quick fixes for short-term cash problems, but they can be one of...
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Credit Card Debt in Canada: What To Do If Your Balances Are Getting Out of Control
If you’re dealing with serious credit card debt, you are definitely not alone. I’ve been writing about Canadian debt, lending, and consumer finance for more than two decades, and one thing I’ve seen again and again is how fast credit...
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Bankruptcy Alternatives in Canada: 7 Options I’d Look At First Before Filing
If you’re searching for the best bankruptcy alternatives in Canada, you’re probably under real pressure right now. I get it. After writing about Canadian debt relief, credit, and lending for more than two decades, I can tell you this much:...
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Farber Debt Solutions – We Review This Canadian Licensed Insolvency Trustee (2026 Update)
Credit: Farber Debt Solutions If your debt feels like it is getting harder to control every month, you are not alone. I know how stressful it can be to compare consumer proposals, bankruptcy, credit counselling, and other debt relief options...
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Spring Financial – We Review Their Loans, Interest Rates & Complaints in Canada.
Spring Financial is a Vancouver-based Canadian online lender that offers personal loans and credit-building programs to borrowers in most provinces across Canada. In this review, I’ll break down their loan products, rates, reviews, and overall value to help you decide...
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5 Things to Know About Debt Collection Laws in Ontario
Are you being harrassed by debt collectors in Ontario? While debt collectors certainly have the right to contact you by all means necessary, they have to abide by certain provincial and federal rules. In this article, we'll dive into what...
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How to File a Consumer Proposal in Alberta? See Alternatives, Costs, etc.
Are you crumbling under debt in Calgary, Edmonton, Lethbridge, Medicine Hat, Red Deer, or elsewhere in the province? First, know that you are NOT alone. The reality is many Albertans face financial hardship. Unfortunately, as of 2024, Alberta (AB) is...
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What Is a Consumer Proposal in Canada and Who Is It For?
If you're drowning in debt and unsure where to turn, you're not alone. Many Canadians confront insolvency and wonder how mitigation will affect their family, assets, and long-term financial health. Moreover, most are unaware of the laws and regulations designed...
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This page is general information, not financial or legal advice. Debt and insolvency rules change and every file is different. Speak to a licensed credit counsellor or a Licensed Insolvency Trustee before you commit to anything.
