Debt Relief Experts
Millions of Canadians struggle with credit card payments that seem to never go down. If your credit card debt feels unmanageable, there are solutions. Whether you want to lower your payments, freeze interest, or even reduce what you owe, we can help you explore all your options — and find the one that’s right for you.
Credit Card Debt Help: Explore Your Options
Carrying a balance on one or more credit cards? You’re not alone.
In our experience, most people don’t end up in debt because of a single bad decision—it’s often a slow build. High interest rates, unexpected expenses, and relying on credit to cover everyday costs can all lead to balances that keep growing. In our practice, 93% of all our clients owe some form of money on credit cards, often with balances over $10,000.
If you’re making only minimum payments, missing due dates, or juggling multiple cards just to get by, it may be time to consider a more structured solution. Here are the most common credit card debt relief options in Canada:
- Paying off your credit card debt on your own
- Consolidating your credit card debt
- Enrolling in a debt management plan
- Filing a consumer proposal
- Declaring bankruptcy
1. Pay Off Credit Card Debt on Your Own
If your balances are still manageable, you may be able to pay off your debt without outside help. Start by creating a realistic budget, cutting non-essential expenses, and applying as much as you can toward your highest-interest card first (the avalanche method).
You might also:
- Negotiate a lower interest rate with your credit card provider if your payments are current and your credit score is not too low
- Use a balance transfer card to consolidate debt at a reduced rate
- Increase your payments to pay more than just the minimum
Paying off your debts on your own has the least impact on your credit score in the long run. The first step is to catch up on any payment arrears; constantly missing payments or paying less than your minimum payment will do more harm to your credit. Once you do catch up, continue to apply as much as you can each and every month to paying down your credit card debt.
2. Consolidate Your Credit Card Debt
Debt consolidation means combining multiple credit card balances into one new loan or line of credit, usually at a lower interest rate. You still repay the full amount, but it can make payments more affordable and easier to manage.
Common options include:
- A debt consolidation loan through your bank or credit union
- A home equity loan or line of credit (if you’re a homeowner)
- A low-interest personal loan from a lender
Just be cautious—some consolidation loans come with fees or high interest rates, and if the loan is secured (like against your home), you risk losing your asset if you fall behind.
Credit card consolidation can help lower your monthly payments, but you will still have to pay off your original balances in full. How much interest you pay will depend on both your interest rate and your amortization period (how long it will take to pay off the new loan).
Consolidating credit card debt into a new loan is best for those who have stable income, decent credit, and the discipline to avoid racking up new debt while repaying the loan.
3. Enroll in a Debt Management Plan
A debt management plan (DMP) is arranged through a non-profit credit counselling agency. The agency negotiates with your creditors to reduce or eliminate interest, and you repay 100% of what you owe through a structured monthly plan.
A DMP:
- Usually takes 3–5 years to complete
- Helps if your debts are mainly credit cards and you’re not behind on payments
- Will appear on your credit report for 2 years after completion
It won’t cover government debts (like taxes or student loans), and if your debt is too high, it might not provide enough relief.
Working with a credit counselling agency is best for individuals who are struggling to balance multiple payments but can afford to repay their debts in full through a structured repayment plan.
4. Reduce Your Credit Card Debt With A Consumer Proposal
A consumer proposal is a formal, legally binding offer to settle your unsecured debt—including credit card balances—for less than you owe.
- Administered by a Licensed Insolvency Trustee
- Stops interest, wage garnishments and collection calls
- Consolidates all unsecured debts (including tax debt, payday loans, and student loans if they qualify)
- Lets you keep your assets and avoid bankruptcy
- Can reduce your total debt by up to 80%, depending on your situation
Most proposals are paid off over 3 to 5 years, and once it’s complete, the remaining debt is forgiven.
A consumer proposal is often the most common way to achieve credit card debt forgiveness in Canada. It works best for Canadians who want to avoid bankruptcy while reducing their debt and can afford to repay at least a portion of what they owe.
5. Bankruptcy – When It’s the Last Option
If your debt is overwhelming and you can’t afford a consumer proposal, bankruptcy may be the most realistic option. It’s a legal process that:
- Eliminates most unsecured debt
- Provides immediate protection from creditors
- Typically lasts 9 to 21 months for first-time bankruptcies
While bankruptcy impacts your credit report for 6 years after discharge, it can give you a clean slate and help you rebuild faster than continuing to struggle with unmanageable debt.
Get Help With Credit Card Debt Relief in Ontario
At Hoyes Michalos, we’ve helped thousands of people just like you. When you talk to us, you’re talking directly to a federally Licensed Insolvency Trustee.
We can help you eliminate credit card debt:
- ✅ 99% Proposal Acceptance Rate
- ✅ No Upfront Fees
- ✅ Trusted by Ontarians Since 1999
- ✅ Straight Answers, Real Solutions
We’ll walk you through every option, including how to deal with your credit card debt for good.
Hoyes Michalos & Associates provides credit card debt relief solutions in the following Ontario locations
Other service areas
We offer the convenience of phone and video-conferencing services in the following additional locations:
