Are you in PEI struggling with an overwhelming debt load? You are not the only one. Many residents in the province are in a similar situation. As per Equifax, in Q1 2024, PEI residents had an average of $22,774 in unsecured debt. This is up 2.75% from one year earlier.
If you find yourself in this situation, know that there is hope. This guide can help. Here, we will provide options for the best debt relief in PEI. From credit counseling services to formal solutions like consumer proposals and bankruptcy, these resources can help guide you toward financial stability.
Debt Relief Programs for PEI
While in-person counseling is readily available in Charlottetown, there is access to deft relief advice for residents throughout the province.
1. Consolidated Credit Counseling Services of Canada (CCC)
Consolidated Credit offers personalized financial advice and credit counseling. The goal? To help individuals manage debt. CCC’s debt management plans consolidate unsecured debts into ONE affordable payment. The consolidated debt also has a reduced interest rate, which means more manageable payments. CCC also provides ongoing budgeting support.
Services: Debt management plans (DMP), credit counseling, debt consolidation, and financial education resources
Eligibility: PEI residents holding unsecured debt
Benefits: Affordable monthly payments, debt reduction, and professional guidance
More information: Visit https://www.consolidatedcreditcanada.ca/
Check out our review of Consolidated Credit Canada: 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 organization. They offer NO-COST credit counseling services to help PEI residents manage their debts. Certified credit counselors work with individuals, helping them create a manageable budget. They also provide options for debt repayment, including debt management programs (DMPs).
Services: Credit counseling, budgeting assistance, financial education, and debt management.
Eligibility: Any PEI resident with unsecured debts
Benefits: Free(!) consultation, ongoing guidance, and individualized debt solutions.
More information: Visit https://www.solveyourdebts.com/english/about_us/
3. Orderly Payment of Debts (OPD) Program
The OPD program allows PEI residents to consolidate their debts into single, manageable monthly payments at a 5% interest rate. Credit Counselling Services of Atlantic Canada administers the program and can protect from creditors.
Services: Protection from creditor actions as well as debt consolidation, and lower interest rates
Eligibility: PEI residents with unsecured debt. It is best for those who cannot meet their financial obligations.
Benefits: Lower interest rates, creditor protection, and simplified monthly payments (Yes, this means more manageable payments!)
More information: Visit https://www.solveyourdebts.com/
4. Debt consolidation loan
A debt consolidation loan allows residents to combine multiple debts into a single loan. Often, this loan will have a lower interest rate. This means LESS INTEREST over time.
Many financial institutions offer these loans so reach out to one in your area for more personalized advice.
Eligibility: Residents of PEI with a stable income and good credit history
Benefits: Debt consolidation at a lower interest rate. Simplified payments.
More information: Contact your local credit union or bank for details.
5. Licensed Insolvency Trustees in PEI
Licensed Insolvency Trustees (LITs) are government-regulated professionals. Providing formal debt relief, they assist individuals who are in financial difficulty. This means they can help with consumer proposals and bankruptcy. They will evaluate your financial situation and negotiate with creditors on your behalf. The goal? Reduce or eliminate your debts with a repayment plan.
Services: Consumer proposals, bankruptcy, and debt restructuring
Eligibility: PEI residents facing insolvency.
Benefits: Legal protection from creditors. They also offer potential debt reduction.
More information: https://www.ic.gc.ca/app/scr/tds/web/?lang=eng
BDO Debt Solutions
BDO Debt Solutions provides debt relief options for PEI residents and other Canadians. They offer financial counseling while helping to manage or eliminate debt with a consumer proposal or bankruptcy.
- Address: 2 offices in PEI (visit https://debtsolutions.bdo.ca/locations/ for details)
MNP Debt
Helping Canadians and those in PEI, MNP provides help with debt relief. The company can help with debt consolidation, restructuring, consumer proposals, and bankruptcy.
- Address: 2 offices in PEI (visit https://mnpdebt.ca/en/offices?filter=offices®ions=Prince%20Edward%20Island)
6. Consumer Proposal
A consumer proposal allows individuals to settle their debt by offering to repay a portion of the owed amount. This means you do not have to repay your debts in full. Repayment takes place over a set period, typically up to five years. A Licensed Insolvency Trustee (LIT) administers a consumer proposal as a bankruptcy alternative. It still gives legal protection from creditors.
Eligibility: You may be eligible for a consumer proposal if your debts are $250,000 or under. You must also have a stable income.
Benefits: Avoid bankruptcy while reducing your debt
More information: LIT in Nova Scotia
7. Bankruptcy
Bankruptcy in Canada is a formal process that allows individuals to eliminate most of their unsecured debts. A Licensed Insolvency Trustee (LIT) in PEI will oversee the process. A LIT helps residents through the legal process. Bankruptcy discharges most unsecured debts. This provides a fresh start for individuals. But, of course, it is not without consequences. This is why bankruptcy is a last-resort option only.
Eligibility: Residents of PEI who are insolvent. Bankruptcy is for those who can not pay their debts.
Benefits: Bankruptcy provides legal protection from creditors. It also provides financial relief by discharging most (or all) of your unsecured debts.
More information: Talk to a LIT in your area for customized advice
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.
