Debt that feels like it has no exit doesn’t have to stay that way. There are many debt consolidation and repayment options available in Canada. Reach out today to book a free session with one of our credit counsellors, whatever your income or how much you owe. The call costs nothing, and it’s confidential and judgment-free. You don’t need to go it alone, we’re here to help.

Finding a Way Forward With Credit Card Consolidation

The trustee referred her to us, the Credit Counselling Society, to find out about the various debt consolidation options that might be available to her. What she heard on that first call surprised her.

“It sounded like a dream come true,” she says. “I kept thinking, can I really do this? Get a payment I can afford and have it all gone in just over four years?”

Her monthly payment came in close to what she’d already been paying just in interest. This time, though, it actually went toward the balance. It’s the same comparison worth running for yourself – a debt repayment calculator can show whether a Debt Management Program payment would land above or below what you’re currently paying in interest alone. This can be the clearest way to see if it’s the best way to consolidate credit card debt for your situation.

Making Debt Repayment Work 

To make a Debt Management Program work, Kathryn picked up a part-time job, two days a week, to cover the payment. ODSP had also recently raised how much recipients could earn before clawbacks kicked in. Between the two, she had a bit more room in her budget for the first time in a year. “I can handle two days a week,” she says. “And I was bored anyway.”

However, one time her pay came in two days late. Another time, her ODSP deposit didn’t show up when it was supposed to, and there wasn’t much she could do about it. Both times, she called in expecting the worst.

“I called in freaking out,” she says. “And [the person she was talking to] said, that’s fine, we’ll make a note of it, as long as it’s in by such and such a date, we’re good. Very accommodating. It wasn’t set in stone.”

What kept her going month after month during repayment was watching the numbers actually move.

“It was so good to see it coming down every month,” she says. “I wasn’t seeing that before. Those balances were just the same. This was different.”

The Happy Dance: Debt Freedom After Consolidation   

After 54 months, Kathryn made her final Debt Management Program payment. Everything was cleared, apart from one small residual amount, just over $100, which she paid off soon after.

“I literally bounced off the couch,” she says. “When you pay off your debts, it’s a happy dance.”

The only regret she has is not calling sooner. That year cost her $300 to $400 a month in interest charges on a 19% credit card, money that disappeared without reducing what she owed by a single dollar.

Life After the Repayment Program 

It’s easy to become worried about having credit after using a repayment program to consolidate debt. But today, Kathryn has two credit cards. She pays off whatever she’s spent before the next billing date, and she’s watching her credit history build back up. President’s Choice, one of her original creditors, recently sent her a new card. Rogers gave her a Mastercard when she renewed her phone plan. She’s already earned $150 in cashback rewards in six months.

“I thought, well, they got their money,” she says. “They got what they were owed. Everyone was paid off. And now I have a clean slate.”

The program changed how she thinks about spending day to day. Impulse buying, she admits, was once a weakness. Now she does the math first, even for small things.

“Simple things I never thought about before because I never had to,” she says. “Now I go, okay, what can I afford? What do I actually need? Do I really need to buy this?”

“I look at the credit card differently now,” she says. “That $600 I spent, it’s already been spent. So I’m paying it off. I’m not thinking of it as borrowing. I’m thinking of it as paying for what I already bought.”

At her lowest point, a trip to the grocery store meant choosing between bread and milk.

“That’s how bad it got,” she says. “To have that taken away, to go in and think, is it either bread or milk today?”

Today she fills her cart without a second thought, card in hand, already knowing what the total will be before she reaches the register.

For Anyone Hesitating to Consolidate Their Credit Card Debt 

As someone on disability income, Kathryn could have taken a different route than consolidating her credit card debt. After speaking with a credit counsellor and comparing options, the choice was clear for her.

“Being on government disability, I could have done the bankruptcy route,” she says. “I just don’t want to do those things. I like having good credit.”

Her advice to anyone in a similar position is simple: “Call. Don’t wait. The only thing I regret is not doing it sooner.”

Credit Card Consolidation on a Fixed or Disability Income  

Kathryn wasn’t sure her ODSP income would be enough to qualify for help, and she isn’t the only one who’s assumed that. Our Debt Management Programs are based on what you can realistically afford each month, not a minimum income threshold. We don’t lend money and get anyone deeper into debt, just to get them out of debt. That’s why her payment worked even on a fixed income.

Learn more: What is a Debt Management Program?

Start With a Free Session to Talk Through Debt Consolidation, Repayment, and Other Options

Debt that feels like it has no end in sight doesn’t have to stay that way. There are many debt consolidation and repayment options available in Canada. Reach out today to book a free session with one of our credit counsellors, whatever your income or how much you owe. The call costs nothing, and it’s confidential and judgment-free. You don’t need to go it alone, we’re here to help.