Ontario may be the largest Canadian province in terms of population, but its residents are fortunate that they do not carry the largest average amount of consumer debt per capita. As of the end of Q1 2019, residents of Ontario had an average debt level of just under $24,032, up 4.5% from the same period in 2018 but down from the peaks earlier in the decade. These debt levels are comparable with other major provinces around the country however well under the highest debt-laden province which is Alberta.
Despite the fact that Ontario residents do not have the highest average consumer debt in Canada, however, there remains room for concern. The increase in the average Ontarian’s consumer debt from 2011–2012 was 3 percent, which was roughly equivalent to Canada’s rate of inflation during the same period. Among other things, this indicates that many of those who live in Ontario are having difficulty making real headway in paying down their debt. Perhaps you count yourself among those who fall into this category. If so, now is the time to get started on a plan to repay your creditors and improve your debt-to-credit ratio.
In Ontario, you have several options for dealing with your debt, including debt settlement, consumer proposals, bankruptcy, and credit counselling. You will want to know which of these options is best for your needs. That is why we have put together this guide on credit counselling to help you evaluate that particular debt repayment option.
Credit Counselling in Ontario
You should know that credit counselling is a comprehensive debt repayment solution that works to help you pay off your creditors and make sure you never get in over your head in debt again. In addition to working with your creditors to get your average interest rate lowered and negotiate more manageable payments, most Ontario credit counselling plans include financial education that teaches you how to write a budget, live within your means and do whatever else you need to make sure you stay out of debt for good.
Credit Counselling vs. Debt Settlement?
While credit counselling solutions can often consolidate your payments into a single, more manageable one, it is rare that they will actually reduce the total amount you owe. A quality debt settlement program will help you get your total debt levels reduced.
Still, credit counselling in Ontario may be the better solution for you depending on the amount of debt you are carrying as well as your average interest rate. You may want to consider credit counselling seriously if you do not owe very much money to your creditors because it will be easier to stick to a restrictive credit counselling plan. After all, it is simpler to tighten your budget for a few months than the several years it takes if you pursue credit counselling to pay off a hefty debt load.
What’s Right for Me?
If you are unsure as to whether credit counselling, debt settlement or other debt relief options are better for your needs, there IS help available. Fill out the online debt relief form to find out more about debt relief options in Ontario.
Total Insolvencies in Ontario (By Quarter)
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