Debt Relief Options in Calgary, Alberta

Debt.ca is Calgary’s trusted source for debt relief

At Debt.ca, we understand people sometimes find themselves inundated in debt for many reasons including job loss, reduced income, medical expenses, or even the rising costs of raising a family. Calgarians are dealing with a lot of debt, sometimes even for their day-to-day expenses. The total consumer debt in Calgary, as of Q4 2023, reached $26.4 billion, excluding mortgages. Including mortgages, this number shoots up to $96.9 billion. Luckily, debt relief in Calgary comes in many forms.

When faced with a mountain of consumer debt, it is quite easy to become overwhelmed and believe that you will never be able to pay off your creditors. That is why we want to help all Calgarians better understand their debt relief options and save the most money while they get out from under their unsecured loans.

Are you struggling with debt or trying to figure out which debt relief program will help you get out of debt in the quickest amount of time and for the least amount of money? If so, let us show you that you can live a life free of bills and you do have more options than you probably realize. Simply put, if you’re paying out more money every month than you have coming in, we can get you to a professional who can help. Fill out the form above to get started today!

Credit counselling help in Calgary, AB

Consumer debt throughout Canada has been on the rise, Alberta is no exception. Alberta currently has the highest delinquency rate in the country at 1.63%. The economy in Alberta is greatly dependent on oil and gas prices, and is hence a little more volatile compared to Canada as a whole. Due to the dependence of their economy on these industries, and general geographical variations, Alberta tends to have a slightly different usage of credit compared to the rest of Canada.

The average debt in Calgary, excluding mortgages, comes to $23,816 as of Q3 2023, with a delinquency rate of 1.36%. This is a YoY increase of 18.76% in delinquency rates. This shows that more Calgarians are facing debt related issues and are unable to keep up with their bills. The debt-to-income ratio is expected to increase, as upcoming mortgage renewals will bring people from the record low rates of the pandemic to the present day higher bank rates. Mortgage renewals are having an effect already – as of 2024, monthly payments after mortgage renewals increased by $457 on average. In addition, income seems unlikely to increase across the board, so the debt ratio is likely to only go up in such a case.

That’s why finding credit help in Calgary is a priority for many individuals. Speak to one of our credit counsellors to discuss your financial situation, and learn about the debt solutions we offer and what solution would be best for you. If your overall debt levels increase month after month, then credit counselling in Calgary may be your best option. A quality Calgary credit counselling program can help you get out from under your debt and shore up your financial future at the same time.

Do Debt Management Programs work for Calgarians?

Residents of Calgary often confuse debt management plans with credit consolidation, because they have some similarities. For instance, both programs entail converting several debts into one monthly payment for ease of tracking. However, you still owe the original creditors when you enroll in a debt management plan (DMP). Conversely, you only owe one entity when you participate in a debt consolidation loan. If you’re considering a DMP in Calgary, you must have a steady source of income.

Calgary ranks 18th in Canada in per capita consumer debt. The average debt in Calgary, including mortgages, is $73,568 per capita. This is a 3.52% decrease since 2019. Calgarians have an overall credit card outstanding balance of $5.26 billion as of Q4 2023, up from $4.81 billion in Q4 2022, which is an increase of 9.35% in just one year.

While DMPs serve those with more than $10,000 of debt, homeowners may have to cash out equity instead. Likewise, individuals who have funds in their RRSP may have to use those funds to pay off the debt in lieu of enrolling in a debt management plan. Speak to a counsellor in Calgary to determine if a DMP is the right option for you.

Debt consolidation options in Calgary, AB

As a citizen living in Calgary, it’s not uncommon to fall on hard times. If you’re experiencing difficulty keeping up with your financial obligations, debt consolidation may be your best option to get back on track. As such, consolidating your unsecured debts can make managing your payments easier. For example, multiple credit card debts and other liabilities combine into a single monthly payment. This makes it easier to prepare for and remember when just one due date is approaching every month. In addition, that single payment can be more manageable, with a lower interest rate than the existing rates on your different debts.

The average consumer debt per capita in Calgary is $23,885, which is the second highest in the country after Fort McMurray, with an average of $37,762. Alberta tends to have a difference in debt product consumption compared to the rest of Canada. Credit card balances tend to be higher. Since so many debt instruments like credit cards and lines of credit have variable interest rates, it affects people’s ability to make consistent payments. Wage growth has not kept up with the increasing interest rates and inflation, which affects people’s ability to make payments regularly and on time. This can be seen in the higher YoY increase in delinquency rates, even when the per capita debt for Calgarians has decreased as a whole.

While there are different ways to consolidate your debt, the most common way is through procuring a loan. However, your ability to qualify for a consolidation loan depends on your current credit score. Learn more about the debt consolidation process in Calgary here.

Options for a consumer proposal in Calgary

To file a consumer proposal, Calgary residents must go through a Licensed Insolvency Trustee in the area. Consumer proposals allow their participants to pay back less than what they owe to their creditors. Despite how good that sounds, it comes with some drawbacks and should be a last resort, much like bankruptcy. To qualify for a consumer proposal in Calgary, individuals must not owe more than $250,000. Likewise, a married couple filing jointly cannot have more than $500,000 in debt.

For the 12-month period ending Q1 2024, Alberta witnessed a 13.3% increase in total insolvencies, including both bankruptcies and proposals. This is lower than the Canadian average of 19.3% over the same time period. In Q1 2024, Albertans filed for 3,966 consumer proposals, which is 6.4 times greater than the number of bankruptcies filed. This follows the pattern of consumer proposals being preferred by most Canadians, as compared to filing for bankruptcy.

Paying less than what you owe at a lower interest rate comes with some heavy consequences. For one, your credit score drops to the absolute lowest it can go. In addition, the consumer proposal will remain on your credit report for up to three years after you complete the five-year program. This can make acquiring credit or buying a home or auto more difficult. Speak to a member of our team who understands the laws regarding consumer proposals in Calgary today.

How Bankruptcy works in Calgary

Many people living in Calgary can find it difficult to keep up with the cost of living.

If your debts have been piling up to an unmanageable amount, declaring bankruptcy might be the solution to your money troubles. However, one must never take bankruptcy lightly, as it is only a last resort. Speaking to a Licensed Insolvency Trustee can shed some light on your options and inform your next steps in finding a fitting solution. In Q1 2024, Albertans filed for 619 bankruptcies.

Remember, declaring bankruptcy gets most of your debts forgiven, however, you forfeit most of your valuable assets in return. In addition, you will no longer experience wage garnishments. Conversely, you may not be able to obtain credit for seven years, and there is a limit on how much you can earn during bankruptcy. If you’re thinking about filing for bankruptcy in Calgary, call us to speak with a professional who can help.

You are not alone

Each year, Debt.ca is pleased to provide residents of Calgary with the debt relief they’ve been searching for. On average, they were struggling with a debt load of $21,589 but now have the help they need to get their finances, and their life, back on track.