Many Albertans are struggling with unaffordable debt, which can greatly impact their financial situation and quality of life. If you are one of the many people in Alberta struggling to repay what you owe, you may be feeling overwhelmed, stressed, and unsure of where to turn for help.

Fortunately, there are a variety of debt relief options available in Alberta to help you get back on track and regain control of your finances.

In this guide, we’ll explore some of the debt relief options available in Alberta and provide you with the information you need to make an informed decision about your financial future.

What is debt relief (Alberta)?

In Alberta, Debt relief is a catch-all term that refers to a range of programs designed to help individuals deal with unmanageable debt, particularly those who cannot afford to repay what they owe.

The goal of debt relief is to help individuals reduce their overall debt burden, make their debt more manageable, and ultimately regain control of their finances.

Debt relief programs can be a valuable resource for anyone struggling with debt, and they are often provided by government agencies, non-profit organizations, or private companies that specialize in debt management.

Common signs you need help dealing with debt

If you’re experiencing any of the following signs, you could benefit from a debt relief program:

You’re having cash flow problems

If you’re finding it difficult to pay your bills on time, are constantly running out of money before your next paycheck, or are falling behind on your rent or mortgage payments, you may need help with debt relief.

You’re relying on credit cards or other forms of credit

If you’re regularly paying for essentials by using credit cards, lines of credit, or other forms of credit to cover your living expenses, it could be a sign that you’re struggling with debt.

Creditors are contacting you about debt repayment

If you’re receiving calls, letters, or other communications from your creditors about debt repayment, it’s a clear sign that you’re behind on payments and could benefit from a debt relief program.

You’re struggling with debt stress

If you’re feeling overwhelmed, anxious, or stressed about your debt, it’s a clear indication that you need help.

Debt relief programs can help you regain control of your finances and reduce the stress and anxiety associated with unmanageable debt.

If you’re experiencing any of these signs, it’s important to take action and seek professional help to address your debt problems before they spiral out of control.

Am I eligible for debt help?

Whether or not you are eligible for debt relief in Alberta will depend on your specific financial situation and the level of debt you have, as different debt relief solutions have different qualifying criteria.

In general, some of the factors that will determine your eligibility for debt relief programs include:

• Your income
• Your expenses
• Your assets
• The amount of debt you owe.

If you’re struggling with unmanageable debt, it’s important to seek professional help as soon as possible.

Licensed Insolvency Trustees (LITs) are licensed professionals who are authorized by the federal government to provide debt relief services.

They can assess your financial situation, help you understand your options, and recommend the best course of action to help you avoid bankruptcy and get out of debt.

What debt relief options are available to Alberta residents?

There are several debt relief options available to Alberta residents.

Debt consolidation

Debt consolidation involves combining all of your unsecured debts into a single monthly payment. This can help simplify your finances, make your debt more manageable, and secure you a lower overall interest rate on your debts.

Debt consolidation can be done through a debt consolidation loan or a debt management program offered by a credit counselling agency.

Credit counselling

Credit counselling agencies offer free or low-cost counselling services to help individuals manage their debt. Credit counsellors can provide financial education and support. Your credit counsellor can also help you create a budget and develop a plan to pay off your debts.

Consumer proposal

A consumer proposal is a legal process that involves making a formal offer to your creditors to repay a portion of your debts over a set period of time. It will combine your debts into a single, orderly payment once per month.

Once you complete a consumer proposal, you may even be able to write off a portion of the debt that you owe, which can help you avoid bankruptcy and reduce your total debt.

Are there Government debt relief options available in Alberta?

While the Canadian government does not offer specific debt relief programs, there are some options available that are backed by the government, and resources that can be helpful for managing debt.

As previously mentioned, a consumer proposal is a debt relief solution that is supported by the Canadian government.

It’s a legally binding agreement between you and your creditors, in which you make an offer to pay back a portion of your debts over a set period of time.

If your proposal is accepted, it is legally binding and your creditors must accept the terms of the agreement.

The Canadian government also offers resources and tools to help individuals manage their debt.

These resources are available on the Canadian government website and include budgeting tools, debt repayment calculators, and educational materials on debt management.

Additionally, the government provides support to non-profit credit counselling agencies that offer debt counselling services to individuals and families in need. These organizations can provide education, support, and resources to help you manage your debt and improve your financial situation.

Will debt relief harm my credit report?

Debt relief can have an impact on your credit report and credit score. However, the extent of the impact will depend on the specific debt relief solution you choose and how you manage your debts.

If you choose a debt relief solution like a consumer proposal or bankruptcy, it will be recorded on your credit report and will negatively impact your credit score.

This is because these options involve making a formal arrangement with your creditors which means you won’t technically have repaid your debts in full.

It’s important to note that even if you don’t choose a formal debt relief solution, missed payments, late payments, and high levels of debt can also negatively impact your credit score.

In some cases, debt relief solutions like debt consolidation or credit counselling can actually help improve your credit score by helping you make consistent payments and reduce your overall debt load.

Find out if you qualify to write off up to 80% of your debt!

Where can I get help dealing with my unsecured debts?

If you’re struggling with debt and need guidance to get on the right track financially, A. Fisher & Associates can provide the advice and support you need to find the best debt relief option for your unique situation.

As Licensed Insolvency Trustees, we understand how overwhelming debt can be, but we have the expertise to help you overcome your financial challenges and improve your money management skills.

Don’t let debt hold you back any longer. Contact us today and take the first step towards regaining control of your finances.