Frequently Asked Questions

About the Debt Management Program

Will your debt management program stop harassing phone calls from my creditors?

Once you have established a normal payment schedule and your creditors are receiving your payments on-time each month, the phone calls should stop. It does take time before all the creditors realize you are enrolled with Consolidated Credit Counseling Services. If you continue to receive harassing phones calls from your creditors, contact Consolidated’s client service division and we will inform them of your enrollment and make them stop.

How will the program affect my credit report?

If you are currently “slow paying” or past due on your accounts, typically your credit rating will improve. When you enrol in our program some creditors will bring your account “current” after 3 months of payments arranged through our agency. Creditors may elect, however, to make a comment on your credit report stating you are working with a Counselling Agency. This may also show as a rating of “R7” on your credit report.

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How will a creditor know I joined your program?

When you complete your enrollment forms with Consolidated Credit Counseling Services of Canada, Inc, we notify your creditors that you have joined our debt management program and we will send them an official proposal that includes all the pertinent information that your creditors require. If there are no changes to the proposal, you can begin the program. If changes are necessary, we will notify you of the requested changes. The majority of creditors are willing to work with debt management plans. It’s a better alternative than if you decided to file for bankruptcy. In the end, a debt management program is more beneficial for them and you.

How does a Debt Management Program differ from a Consumer Proposal?

Debt Management Programs are completely voluntary for you and your creditors. A Consumer Proposal may reduce some of the debts owed to creditors. Debt Management Programs provide complete payback to the creditors of your outstanding debt. Subsequently, creditors look more positively at a Debt Management Program since it can help prevent their clients from filing bankruptcy, which would cause them to write off or reduce debts owed to them.

When can I expect to pay off my debt?

With our Debt Management Program most members are out of debt within 3 to 5 years. Your bills are paid off sooner saving you thousands of dollars and years of payments. Find out how long it will take to pay off your credit card debts at your current interest rate with our Debt Calculator.

Will I receive statements from my creditors?

Yes, you will still likely receive statements each month from your creditors. These statements still likely will reflect how much your debt is being reduced and enable you to track the progress you have been making. Please monitor these statements to make certain that the benefits you have received, by enrolling in our debt management program, such as lower interest rates and reduced fees, are active. If you find any discrepancies, don’t hesitate to contact Consolidated’s client service division at 1-800-656-4049.