Skip to content
Client PortalContact(647) 946-2077
Litvack Group
Home›Debt Relief Options›Credit Counselling & Consolidation
Debt Relief Options

Credit Counselling &
Debt Consolidation
in Ontario

Combine multiple debts into one manageable monthly payment, get an honest review of your budget, and learn the long-term habits that keep you out of debt.

Book My Free Consultation →
★ 5.0 Google Rating·99% Success Rate·Confidential·No Obligation
★★★★★4.9from 60+ reviews
Today: Multiple Debts
Visa$11,40019.99%
Mastercard$8,20022.99%
Line of credit$14,80011.5%
Personal loan$6,60014.9%
↓
Consolidated
$612/mo
One payment~8% APR
One payment · Lower rate · Clear end date

Example only. Your rate and payment depend on credit, income, and lender approval.

One simple monthly payment
Often a lower interest rate
Clear payoff timeline
Budget & habits coaching

Free Consultation

Book Your Free 30-Minute Consultation

Tell us a little about your situation and we'll be in touch within one business day.

Free Consultation

Book Your Free 30-Minute Consultation

Tell us a little about your situation and we'll be in
touch within one business day.

Confidential · No obligation · No judgment

What It Is

Credit Counselling & Debt Consolidation, Explained

Debt consolidation means rolling several debts into a single new loan or repayment plan, ideally at a lower interest rate, so you make one payment instead of many.

Credit counselling is professional help reviewing your full financial picture — income, expenses, debts, and habits — and building a realistic plan to pay things down. It often includes a debt management plan with reduced interest negotiated by a non-profit counselling agency.

These are informal options — not legal filings. They work best when your income can support full repayment over a reasonable time, and you mainly need structure, lower interest, or expert guidance.

One monthly payment instead of several
Often a lower combined interest rate
Repay 100% of the principal — no creditor losses
A clear, fixed payoff date
Budgeting support and habit coaching
Only the right fit if...
Your income can repay the debt in full over a reasonable time
You mainly need structure and lower interest, not debt forgiveness
If money is too tight to repay in full, a legal option may protect you better — we'll say so.
Two Related, Different Options

Credit Counselling vs. Debt Consolidation

People often use these terms interchangeably, but they're different tools. We'll help understand all your options to decide which option is the best fit.

Credit Counselling

One-on-one help from a non-profit credit counsellor or Licensed Insolvency Trustee. Includes a full review of your finances and, in some cases, a Debt Management Plan (DMP) negotiated with creditors to reduce interest.

Full budget & cashflow review
Possible reduced-interest DMP (typically up to 5 years)
Money-management coaching included
You repay 100% of principal
Best for: manageable debt where you mainly need structure, advice, and lower interest — not legal protection from creditors.

Debt Consolidation Loan

A new loan from a bank, credit union, or alternative lender that pays off all your existing unsecured debts. You're left with one balance, one rate, and one monthly payment.

One predictable monthly payment
Often a lower blended interest rate
Fixed payoff schedule (typically 3 - 7 years)
Existing creditors paid in full
Best for: good or fair credit and stable income — you can qualify for a meaningfully lower rate than your current debts.
Right Fit?

Is Credit Counselling or Consolidation Right for You?

These options work best when the following describe your situation. If they don't, a consumer proposal or other path may serve you better — and we'll say so.

You have stable income and can afford full repayment over time
Your credit is good or fair enough to qualify for a lower-rate loan
You're juggling several payments and want to simplify
Your debt is mainly credit cards, lines of credit, or personal loans
You want to keep your credit score impact as small as possible
You'd benefit from budgeting and money-management coaching
You want to repay your creditors in full, on better terms
You're not facing wage garnishments, lawsuits, or CRA action

Not sure which option fits?

In a free consultation we walk through your full situation and recommend the best path — counselling, consolidation, or something else.

Book My Free Consultation →
What's Covered

Debts That Can Typically Be Consolidated

Credit counselling and consolidation generally cover unsecured consumer debts:

Credit card balances
Unsecured lines of credit
Store financing & cards
Some payday loans
Not typically covered: CRA tax debt, court fines, child or spousal support, and student loans are generally not consolidated through these informal options. Secured debts (mortgages, car loans) stay attached to the asset and continue to be paid directly. If those debts are part of your situation, a consumer proposal or other formal route may be a better fit — we'll tell you up front.
The Process

How Credit Counselling & Consolidation Work

The path is simple, but the right path depends on your numbers. Our job is to walk you through it honestly — and tell you if a different option would serve you better.

What These Options Don't Do
Don't legally stop creditor calls
Don't reduce the principal you owe
Don't stop wage garnishments
Don't cover CRA tax debt
Don't bind creditors who refuse
Don't release you from all debts
If any of these protections matter for your situation, a consumer proposal or bankruptcy may be the right call. We'll tell you in your free consultation.
1
Free Confidential Consultation
We review your income, expenses, debts, and credit profile. You don't need to come in with a plan — that's our job.
2
Honest Recommendation
If credit counselling or a consolidation loan genuinely fits, we'll tell you. If a consumer proposal would save you more or protect you better, we'll say that too. No upselling.
3
Decide on the Option
Weigh the numbers side by side — credit counselling, consolidation loan, or another route — and choose the one that fits your budget and goals.
4
One Monthly Payment
Old creditors are paid in full. You make a single payment each month — usually for 3 to 5 years — at a lower blended interest rate than you were paying before.
5
Build Healthier Habits
Counselling pairs the plan with budgeting, cashflow tracking, and money-management coaching so you finish debt-free and stay that way.
Comparing Your Options

Counselling vs. Consolidation vs. Consumer Proposal

All three reduce monthly stress, but they're different tools. Here's how they stack up — and why we always go through this with you before recommending anything.

Credit Counselling (DMP)Consolidation LoanConsumer Proposal
What you repay100% of principal, often at reduced interest100% of principal at the new loan rateA portion of unsecured debt Less owed
Interest while repayingReduced (negotiated by counsellor)New loan's rate (often lower than cards)Stops on included debts
Typical timelineUp to 5 years3 — 7 yearsUp to 5 years
Legally binding on creditorsNo — voluntaryNo — depends on lender approvalYes — once accepted
Stops collection callsInformally, if creditors agreeOnly after old debts are paid offYes — by law
Stops wage garnishmentNoNoYes — automatic stay
Covers CRA tax debtNoSometimes, via the new loanYes
Credit report impactR7 rating during planHard inquiry; depends on payment historyR7 rating during proposal
Approval needed fromEach creditor (voluntary)A lenderMajority of unsecured creditors by dollar

Want a side-by-side review of all three?

In one free consultation we work through your numbers and show you, in dollars, what each path would cost.

Book My Free Consultation →
Cost

What Does It Cost?

Our initial consultation is always free. We don't earn anything by recommending one option over another — our job is to give you the right advice.

Credit counselling (DMP): non-profit credit counselling agencies typically charge a small monthly administration fee (often around 10% of payments, capped). The interest reductions they negotiate usually outweigh the fee significantly.

Consolidation loan: the cost is the interest you pay on the new loan. There may be a small origination fee depending on the lender. There is no fee from us for reviewing options.

Consumer proposal (for comparison): the trustee's fee is regulated by federal law and built into your monthly payment — there is no separate fee on top.

Quick comparison · $40,000 unsecured debt
Minimum payments only · cards at 19.99%
~30 yrs to repay · ~$50k+ interest
Consolidation loan · ~9% over 5 yrs
~$830/mo · ~$10k interest
Credit counselling DMP · 5 yrs
~$700/mo · interest reduced
Consumer proposal · 5 yrs
~$300/mo · no interest

Illustration only. Actual numbers depend on your income, assets, creditors, and credit.

Credit Impact

What Happens to Your Credit Score?

None of these options leave your credit untouched — but a successful plan you finish is almost always better than years of missed payments.

Consolidation loan usually has the smallest impact. There's a hard inquiry when you apply, and the new loan shows up — but if you pay on time, your score typically recovers quickly.

Credit counselling DMP reports as an R7 rating on accounts in the plan, similar to a consumer proposal. It clears two years after the plan completes.

The honest truth: the path that protects your credit best is the one you can actually finish. We'll help you pick that one.

1
During a consolidation loan
Hard inquiry up front; old accounts close. On-time payments build positive history each month.
2
During a DMP
R7 rating reported on accounts in the plan, for the duration of the plan.
3
After completion
Negative ratings clear roughly 2 years after final payment. Many clients are rebuilding strong credit within 12 - 24 months.
4
Long term
A finished plan plus rebuilt habits typically beats years of late payments and rising balances — by a wide margin.
Common Questions
Debt Consolidation & Credit Counselling

Frequently Asked Questions

Q
What's the difference between credit counselling and a consumer proposal?
Credit counselling is informal. You voluntarily repay 100% of principal, usually at reduced interest, over up to five years. A consumer proposal is a legal filing under the Bankruptcy and Insolvency Act — you repay only a portion of unsecured debt, interest stops, and creditors are legally bound by the deal. Counselling is lighter-touch; a proposal is more powerful when debt is overwhelming.
Q
Will consolidation actually save me money?
Only if the new loan's rate is meaningfully lower than your weighted current rate, and you don't run the old credit cards back up. We'll do that math with you in your consultation — including the loan fees — so you can see the real number.
Q
Does Litvack Group provide consolidation loans?
No — we don't lend money. As a Licensed Insolvency Trustee firm, we give independent advice on every option, including consolidation through banks and credit unions. We're not paid by lenders, so you get an honest comparison rather than a sales pitch.
Q
Can I consolidate CRA tax debt?
Most credit counselling DMPs do not include CRA tax debt. Some lenders will allow CRA debt to be folded into a consolidation loan if you qualify, but this isn't always available. A consumer proposal does cover CRA tax debt directly. We'll review the right path for you in your consultation.
Q
Will my creditors stop calling once I sign up?
Counselling and consolidation don't legally stop creditor calls — but most creditors stop calling once payments start flowing reliably. Only a consumer proposal or bankruptcy filing legally stops collection activity by triggering an automatic stay of proceedings. If calls and lawsuits are your main concern, we'll be straightforward about that.
Q
Do I need good credit to consolidate?
For a traditional bank consolidation loan, generally yes. With fair credit, alternative lenders may approve you — but at higher rates that can wipe out the savings. If your credit is strained, a credit counselling DMP or a consumer proposal often produces better total numbers than a high-rate consolidation loan.
Q
What happens if I miss a payment?
On a consolidation loan, missed payments add fees and damage credit, just like any loan. On a credit counselling DMP, repeated missed payments can cause the plan to fail and creditors to resume their original interest rates. We'll build a payment that's realistic for your actual budget — not the maximum number on paper.

Ready to see how much debt relief is possible?

One conversation puts every option on the table. No pressure, no judgment, and no obligation.

Book My Free Consultation →
★ 5.0 Google Rating · $0 Upfront Fees · 99% Success Rate