Consumer Proposals – Canada – A Debt Support Solution Explainer

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Overview of Debt Advice Solutions in Canada
The debt solutions landscape in Canada is diverse. With rising living costs and economic uncertainties, many Canadians are seeking effective ways to manage and alleviate their debt burdens.
Key Debt Relief Options
Debt Consolidation: Combine multiple debts into a single loan with a lower interest rate, simplifying repayment. Various institutions offer debt consolidation loans to assist individuals and businesses in managing their debt more effectively.
Debt Settlement: A negotiation with creditors to reduce the total amount owed. While not directly provided by the government, the industry is regulated to protect consumers. It can be beneficial for those who can pay a lump sum to settle their debts.
Debt Management Plans (DMP): Offered by non-profit credit counselling agencies, DMPs involve working with a counsellor to negotiate better repayment terms with creditors. Although all debts must be repaid, a DMP can provide interest...

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