Are you in New Brunswick and feeling buried under debt? I know it may not feel like it, but you are far from alone! Many people in the province and across Canada are facing similar challenges.
As per the latest MNP Consumer Debt Index, two in five Atlantic Canadians say “they are still concerned with their ability to repay their debts, even if interest rates decline.” According to MNP Licensed Insolvency Trustee (LIT) Tara Silliker, some Canadians are “grappling with such overwhelming debt that their financial difficulties simply aren’t manageable, regardless of interest rate changes.” Does this sound like you? Remember, hope is not lost. I promise! In this guide we will cover the best debt relief resources in New Brunswick to help get you back on track financially.
Debt Relief Programs for New Brunswick
If you live in Moncton, Saint John, or Fredericton, you may have more access to in-person advice. But, if not, debt relief advice is still available for residents throughout the province.
1. Consolidated Credit Counseling Services of Canada
Consolidated Credit offers tailored financial advice and credit counseling to help individuals take control of their debt. Their debt management programs simplify finances by combining unsecured debts into a single monthly payment. Yes, ONE. These plans frequently come with lower interest rates, making it easier to manage repayments. CCC also provides continued support with budgeting and financial planning.
Services: Debt management programs, financial education resources, credit counselling, and debt consolidation guidance
Eligibility: Any New Brunswick resident with unsecured debt
Benefits: Access to professional financial guidance, lower interest rates, and streamlined payments.
More information: See https://www.consolidatedcreditcanada.ca/ for more details
Read our review of Consolidated Credit here: https://inflationcalculator.ca/consolidated-credit-counseling-canada-legit-debt-relief-service-read-our-review/
2. Credit Counselling Services of Atlantic Canada (CCSAC)
CCSAC provides free, confidential counselling for anyone battling debt in New Brunswick. The non-profit organization has certified counsellors who can help you with budgeting and debt management. They also offer advice surrounding debt consolidation and debt management programs (DMPs) to help you simplify your monthly payments.
Services: Financial education, credit counselling, and budgeting advice. They also offer debt management programs.
Eligibility: Available to New Brunswick residents struggling with debt
Benefits: CCSAC has personalized debt solutions and ongoing financial guidance. Reach out for a free consultation.
More information: Visit https://creditcounsellingcanada.ca/locations/credit-counselling-services-atlantic-canada/
3. Debt consolidation loan
New Brunswick residents can also explore debt consolidation loans. These loans combine multiple debts into one with a lower interest rate. This means simplified debt repayment. It also means less interest, so more money goes towards the amount you owe.
Financial institutions such as banks and credit unions offer debt consolidation services.
Eligibility: A debt consolidation loan is often available to New Brunswick residents with a solid credit rating. They must also have a stable income to apply.
Benefits: Consolidating outstanding debts and simplified payments. There is also the potential for reduced interest expenses, meaning you can pay off your debts faster.
More information: Contact your local credit union or bank. For example, reach out to Brunswick Credit Union.
4. Licensed Insolvency Trustees (LITs) in New Brunswick
Regulated by the Canadian government, a Licensed Insolvency Trustee (LIT) offers debt relief services, including consumer proposals and bankruptcy. After assessing your financial situation, a LIT can help to negotiate with your creditors. They may recommend and can help administer a consumer proposal. Or, in the worst case, bankruptcy proceedings.
Services: A LIT offers financial assessments and debt restructuring options. They also help with consumer proposals and bankruptcy proceedings.
Eligibility: New Brunswick residents who cannot manage their unsecured debts
Benefits: Legal protection from creditors. The potential for debt reduction.
More information: https://www.ic.gc.ca/app/scr/tds/web/?lang=eng
BDO Debt Solutions
Providing financial counselling and debt relief strategies, BDO Debt Solutions is available for Canadians, including New Brunswick. They assist residents of the province with managing or eliminating debt through consumer proposals or bankruptcy.
- Address: 4 offices in New Brunswick (visit https://debtsolutions.bdo.ca/locations/)
MNP Debt
MNP extends debt relief services to New Brunswick residents and those throughout Canada. They specialize in helping individuals with debt consolidation and restructuring options. The firm also provides support for those considering consumer proposals or bankruptcy.
- Address: 8 offices in New Brunswick (see https://mnpdebt.ca/en/offices?filter=offices®ions=New%20Brunswick)
5. Consumer Proposal
A consumer proposal is negotiated with creditors and administered by a Licensed Insolvency Trustee (LIT). The proposal allows you to pay part of your debts for up to five years. What happens at the end of five years, though? Your debt is forgiven. This option can be beneficial as it reduces the total debt you must pay.
Eligibility: Those with under $250,000 in outstanding debt are eligible for a consumer proposal. You also must maintain a consistent income and cannot repay your debts in full.
Benefits: Avoid bankruptcy while reducing your debt. You can also protect your assets.
More information: LIT in New Brunswick
6. Bankruptcy
For those in severe financial distress, bankruptcy offers a legal path to discharge most unsecured debts. In New Brunswick, individuals can file for bankruptcy with the help of a Licensed Insolvency Trustee (LIT). Bankruptcy provides immediate relief from creditor actions and allows residents to reset their financial situation. It is not without consequences, though. Be sure to thoroughly research this option before proceeding.
Eligibility: Bankruptcy is an option for New Brunswick residents who are insolvent and unable to repay their debts. It should be considered only after exploring all other debt-relief options due to its long-term financial impacts.
Benefits: Filing for bankruptcy eliminates most unsecured debts and stops creditor actions, offering a fresh start financially.
More information: Talk to a LIT in your area for more details.
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.
