Is a Debt Relief Program Right for You? A Simple Guide for Canadians on Benefits

Debt settlement programs are not for everyone. The free eligibility check confirms whether the program is the right choice for your specific situation. This guide provides a simple framework to decide whether a debt relief program is the right path, or whether another option fits better.

Use the checklist below to assess your situation. If three or more items apply, a debt settlement program is likely the right path. If fewer apply, another option (consolidation, credit counselling, home equity) may be more appropriate.

Is a debt relief program right for you?

Use the checklist below to count the items that apply. If three or more apply, a debt settlement program is likely the right path. If fewer apply, another option may be more appropriate: consolidation if you can afford a small new loan, credit counselling if you want a nonprofit advisor, or home equity release if you own a property with significant equity.

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 to the program that is lower than the combined minimums on the original accounts
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, your monthly budget, and your long-term goals. The program reviews and contacts you within 1 business day with a recommendation. The check covers the total amount of unsecured debt, the estimated program duration, the estimated monthly payment, the estimated total cost, the estimated savings, and the estimated impact on your credit score. The recommendation is based on your specific situation, not a one-size-fits-all formula. If the recommendation fits, you schedule a follow-up call to discuss the details and request a formal application. If it does not fit, you walk away with no cost and no obligation, and the program may refer you to a different specialist.

Common mistakes to avoid

The most common error in 2026 is taking the first offer without comparison. Debt relief is a competitive market, so get at least two quotes, understand the total cost, and confirm the impact on OAS or GIS before signing anything. The second most common error is 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. If the eligibility check does not fit (the unsecured debt is too low, the monthly budget is too high, or the homeowner path is more appropriate), 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.