If you are a Manitoba resident saddled with debt, you are NOT alone. Yes, even if it feels that way. The latest MNP Consumer Debt Index found that 57% of Saskatchewan and Manitoba residents were “concerned about their ability to repay their debts.” Another 45% “report being $200 or less away from failing to meet all their financial obligations.” If you find yourself part of this group, do not worry! There are plenty of resources to help.
Debt Relief Programs for Manitoba
While virtual and telephone advice is available across the province, larger cities and towns such as Winnipeg and Brandon will have better access to in-person support.
1. Non-profit credit counselling services
Available to all residents, non-profit organizations provide credit counseling services throughout the country. With no initial fees, these organizations provide guidance on debt consolidation and can help you negotiate with your creditors. This means they MAY be able to help you lower your outstanding debt.
Eligibility: Manitoba residents with unsecured debt
Benefits: Free personalized advice, guidance for negotiating with creditors, debt management plans, and debt consolidation.
More information: Reach out to a non-profit credit counseling agency in Manitoba. Below are a few examples of these non-profit organizations.
Community Financial Counselling Services (CFCS)
Community Financial Counselling Services (CFCS) is a Manitoba-based non-profit offering no-cost financial counseling. The organization assists residents with debt management plans and credit counseling. They also offer budget planning.
Visit the CFCS webpage here: https://www.cfcs.mb.ca/
Consolidated Credit Counseling Services of Canada
Consolidated Credit Canada is a non-profit that supports individuals struggling with unsecured debts. The non-profit organization offers credit counseling and debt management plans. They work with creditors to negotiate better terms and reduced interest rates.
See our review of Consolidated Credit Canada here: https://inflationcalculator.ca/consolidated-credit-counseling-canada-legit-debt-relief-service-read-our-review/
Credit Counselling Society
The Credit Counselling Society is a non-profit that offers free credit counseling, financial education, and debt management services to Manitoba residents. They help with budgeting and creditor negotiations. They also specialize in consolidation options.
Visit the Credit Counselling Society webpage here: https://nomoredebts.org/
2. Manitoba Orderly Payment of Debts (OPD) program
The Manitoba Orderly Payments of Debts (OPD) program, similar to the OPD program available in Alberta, helps provincial residents consolidate their unsecured debts. Instead of making multiple payments at different interest rates, the OPD program combines the outstanding loans. This means there is only one monthly payment. Yes, ONE. And, often, that payment is lower than the sum of the original ones.
Eligibility: Manitoba residents with unsecured debts and a stable income
Benefits: Debt consolidation, reduced interest rates, and creditor protection. The program helps individuals manage their debt without bankruptcy.
More information: Speak with a debt consolidation company for more details.
3. Debt consolidation loan
Financial institutions in Canada can provide debt consolidation loans to Manitoba residents. These loans combine multiple debts into one. And the new loan often has a lower interest rate. Ideal, right? Not only can a debt consolidation loan simplify the repayment process, but it can also help you avoid defaulting on loan payments.
Eligibility: Individuals with a good credit score and stable income are often eligible.
Benefits: Simplified, lower interest payments, a structured repayment plan
More information: Contact your local bank or credit union. For example, reach out to Assiniboine Credit Union or Sunova Credit Union.
4. Manitoba Farm and Rural Support Services
Manitoba Farm and Rural Support Services helps farmers and rural residents experiencing financial hardship. The program aims to help agricultural workers manage their debt and financial responsibilities effectively. They offer debt counseling, budgeting advice, and creditor negotiations to the unique group of residents.
Eligibility: The service is for Manitoba farmers and rural residents burdened with debt.
Benefits: Provides specialized, confidential support tailored to farmers and rural residents. The program helps Manitoba residents manage farm-related debts, negotiate with creditors, and improve their financial stability.
More information: Contact Manitoba Farm and Rural Support Services directly at 1-866-367-3276 or by email at info@supportline.ca
5. Licensed Insolvency Trustees (LIT)
A Licensed Insolvency Trustee (LIT) provides Canadians with a range of debt relief solutions, including consumer proposals and bankruptcy. A LIT is also legally authorized to administer insolvency proceedings. They can assess your financial situation and offer personalized guidance on how to proceed.
Eligibility: Suitable for Manitoba residents who cannot pay their unsecured debts.
Benefits: Formal, personalized advice. Guidance on protecting your assets while eliminating debt.
More information: Consult a Licensed Insolvency Trustee (LIT) in Manitoba for personalized information. Find a LIT in your area here: https://www.ic.gc.ca/app/scr/tds/web/?lang=eng
BDO Debt Solutions
BDO offers debt relief options, including consumer proposals and bankruptcy. They also aid individuals in managing their debt through financial counseling.
- Address: locations in Winnipeg and Brandon (visit https://debtsolutions.bdo.ca/locations/ for more information)
- Phone: (204) 944-4444
MNP Debt
MNP offers debt relief for individuals across Canada. These services include debt consolidation and financial counseling. They also help restructure or eliminate debt through consumer proposals or bankruptcy.
- Address: Various (visit https://mnpdebt.ca/en/offices?filter=offices®ions=Manitoba for more information)
- Phone: (toll-free) 1-877-231-6167
6. Consumer Proposal
This strategy works best for those who want to avoid bankruptcy while still reducing their debts. But how does a consumer proposal work? It is a formal agreement negotiated with creditors to reduce the total amount owed. It may also extend the repayment period, helping lower the monthly payments on unsecured debts. Yes, that’s right, lower payments! Administered by a Licensed Insolvency Trustee (LIT), consumer proposals can help you avoid bankruptcy while repaying a portion of your debt over time.
Eligibility: Individuals with debts amounting to $250,000 or less are eligible for a consumer proposal. This limit excludes your mortgage. An ideal candidate is one with a stable income.
Benefits: A consumer proposal helps you keep your assets. It provides relief as it can also reduce the amount of money you owe.
More information: Contact LIT in Manitoba for personalized guidance.
7. Bankruptcy
Canadians, including those in Manitoba, can go through bankruptcy proceedings as a last resort option. And yes. I mean LAST RESORT. The process will eliminate your debt, though it is not without consequences. For example, declaring bankruptcy has an immediate impact on your credit. This can be an issue when taking out a mortgage or loan in the future. That said, bankruptcy can be a viable option. Just be sure to research your options and speak with a professional Licensed Insolvency Trustee (LIT) for help.
Eligibility: Individuals are eligible for bankruptcy if they cannot make their debt payments in full.
Benefits: Bankruptcy offers imminent relief from payments and creditor actions while reducing or removing most debts.
More information: Speak with a LIT in Manitoba.
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.
