HELOC vs Refinancing vs Reverse Mortgage in Canada: Which Fits a Fixed Income?

If you are on a fixed income (OAS, GIS, or pension) and struggling with unsecured debt, this guide helps you decide whether a debt settlement program is the right path for your situation.

Is a debt relief program right for you?

Use the checklist below to count the items that apply to your situation.

If three or more apply, a debt settlement program is likely the right path. If fewer apply, another option may fit better.

1. You have at least $5,000 to $10,000 in unsecured debt (credit cards, personal loans, lines of credit)
2. The minimum payment on the unsecured debt is more than 10 percent of your monthly income
3. You have not made progress on the principal balance in the last 6 months
4. You can make a single monthly payment that is lower than the combined minimums
5. You are willing to commit to a 24 to 48 month program
6. You understand the temporary impact on your credit score and accept it
7. You do not own a home with significant equity that could be used to consolidate the debt
8. You have not filed for bankruptcy in the last 7 years and are not in active legal proceedings with creditors
9. You have a stable source of income (OAS, GIS, pension) for the duration of the program

What the eligibility check covers

The eligibility check is a free, no-obligation review of your unsecured debt, monthly budget, and long-term goals.

The program contacts you within 1 business day with a recommendation based on your specific situation.

The review covers the total unsecured debt, estimated program duration, monthly payment, total cost, savings, and credit score impact.

If the recommendation fits, you schedule a follow-up call. If it does not fit, you walk away with no cost and no obligation.

Common mistakes to avoid

1. Taking the first offer without comparison

Debt relief is a competitive market. Get at least two quotes, understand the total cost, and confirm the impact on OAS or GIS before signing anything.

2. Signing up for a program that does not fit

The eligibility check is the right way to confirm. If the program does not match your situation, walk away with no cost and explore other options.

3. Ignoring the home equity alternative

If the unsecured debt is too low, the monthly budget is too high, or you are a homeowner, the alternative is to use home equity to pay off the debt.

See the 2026 update on home equity options for seniors →

Independent guide. Not affiliated with any debt relief provider. The information in this guide is editorial. The debt settlement options are offered by private companies; confirm details on the official company websites before acting on any information here.