What Are Your Options for Clearing Your Debt?

Canadians hold 185% debt as a ratio to disposable income these days. Much of this is spread between several loans and credit cards. Hence, people often investigate debt consolidation to solve their money problems. It is one of many ways to handle any significant debt that may have built up over time, but what are the other options?

In this article, Crowe MacKay & Company’s Licensed Insolvency Trustees in Vancouver and Surrey share several available methods to help you clear your debt. As you read through the article, consider whether it is the right choice for you.

If you require assistance, contact our team in Vancouver and Surrey to start your debt relief journey.

Types of Debt Solutions

The following options have different pros and cons regarding the various methods of clearing debt. As such, consider speaking with a debt solution expert before choosing any specific one.

Debt Consolidation Loans

Debt consolidation loans are used to roll your other debts into one loan. Doing this simplifies your finances into one location, reducing the mental load you must bare as you only need to make one monthly payment. Depending on where you qualify for a consolidated loan, you may also find a way to reduce your interest rates and monthly repayments.

Taking out a secured loan instead of an unsecured one may entitle you to a lower interest rate and, therefore, is more likely to lower your monthly payments.  Never use a credit card to consolidate your debts. Be sure to destroy your credit cards once the debt has been transferred to a consolidation loan to avoid any further obligation. Your goal with a consolidation loan is to reduce your borrowing cost and simplify repayment.


While bankruptcy is typically a last resort, it may be necessary if you have already explored all your other options. Bankruptcy will negatively affect your credit score and may impact specific professional licenses or certifications.  Discussing your circumstances with qualified professionals will help you make the best decisions for your financial future.


You may be eligible to make a Proposal to your creditors depending on your circumstances. A Proposal is an agreement between you and your creditors to reduce the amount of debt payable and give you a manageable monthly payment over a set period.  A Proposal will stop any further interest accruing on your debts. While a Proposal will impact your credit score, it can give you peace of mind and confidence that you are taking control of your finances while reasonably managing your debts.


Talking to a credit counselling agency can give you debt advice catered to your specific needs.

Credit counselling agencies can assist you with a debt management program. The benefit of a debt management program is that the credit counsellor will work with your creditors to reduce or eliminate the interest on your debts while giving you a structured monthly payment schedule. Debt management programs will, however, require that you repay 100% of your debt owing.

The Best Debt Consolidation Option

Each of the above is a valid option to help you find a debt solution that works for you. Still, sometimes, finding a specific loan provider to work with can be challenging.

Help exists for customized debt-reducing solutions in Vancouver to help when things get tough. So, pick up the phone and contact Crowe MacKay & Company today to find out how we can help you get out of debt with minimal fuss.

Require Assistance?

At Crowe MacKay & Company, we have over 60 years of experience and offer free initial consultations. If you have any questions regarding the information above, contact our office today and start your debt relief journey.

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This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual needs. This publication is not a substitute for obtaining personalized advice.

If you require corporate or personal insolvency services, Crowe MacKay & Company provides custom solutions for clients, allowing them to live debt-free.

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Common Questions about Debt Relief

Our Licensed Insolvency Trustees are experienced and qualified to answer all your questions about personal and corporate debt. From identifying imminent financial trouble to providing commercial and personal debt relief options, we are committed to educating you so you feel confident and informed. Depending on your income, the amount of debt you have, your monthly financial commitments, and your future goals, we can recommend the best way forward and assist you with all legal and documentation processes.