Debt Management Calculator & Savings Estimator
See how much you could save by signing up for a debt management program.
Paying off credit card debt isn’t easy – especially when you have a mountain of debt with even higher interest rates. A debt management program may be the perfect solution for you because it allows you to pay back everything you faster and more cost-effective than making just your minimum payments. A non-profit credit counselling agency negotiates with your creditors to reduce or eliminate interest charges, allowing your payments to go towards what you owe rather than high interest and fees. In many cases, it can also lower your total monthly payments, so you can balance your budget and get back on track.
Find out how much you could save
Just tell us how much you owe, in total, and we’ll estimate your new consolidated monthly payment.
With this amount of debt, you'd pay around
What is a debt management program?
A debt management program is a debt consolidation like no other. You will have the benefit of working with trained counsellors focused on setting you up for success in achieving your financial goals. But unlike other types of consolidation, like balance transfers or a consolidation loan, you still owe your original creditors. It’s basically a modified debt repayment plan that you can set up through a non-profit credit counselling agency. You make one payment to the credit counselling agency, then they distribute that money to your creditors on a fixed schedule.
Why are monthly payments often lower with debt management?
When you compare credit cards to other types of debt like loans or lines of credit, interest rates are much higher and often reach 19.99% or 24.99%. At those interest rates, almost all of your payment goes to cover accrued interest charges. You may only pay off a few dollars of principal (the actual debt you owe) back each month.
At the same time, minimum payment schedules are not designed to help you get out of debt efficiently. Minimum payment schedules are set as a proportion of the outstanding balance – usually between 2-5%. This payment structure means that your payments increase as you charge more and your balance increases. At a certain point, the minimum payments get so high that you can’t afford all your bills.
A debt management program offers a huge benefit to consumers, because it reduces or eliminates interest charges. The non-profit credit counselling agency negotiates with each of your creditors on your behalf and rates are typically reduced to between 0% and 11%.
This means that more of each payment goes to pay off your actual debt rather than high interest and fees. In addition, lower interest charges mean you can get out of debt faster, even though your payments are often reduced. A debt management program essentially makes your money work smarter for you and provides a cost-effective way to repay everything you owe.
This is not settlement! You pay back everything you owe, so it won’t show you settled on less than you spent; you just do it in a way that’s more efficient because you don’t throw money away on accrued interest charges.
How much does the typical client save?
Monthly savings varies based on:
- How much you owe
- Your new reduced interest rates
- How much you can afford to pay with a balanced budget
History shows that a debt management program decreases a client’s total credit card payments by up to 30-50%, on average. However, monthly savings vary.
Here are a few case studies from real clients of Consolidated Credit who successfully eliminated their debt with our help:
Alexander from Toronto, ON
My experience with Consolidated Credit has been awesome. I was in so much stress and as soon as I was talking with my consultant, I felt a lot better. They are really kind and very understanding and were able to come up with a solution for me that made sense and made things so much easier. I appreciate all the help and this program is something I would 100% refer friends and family too. Everyone deserves to be debt free. Thank you.
Where he started:
- Total unsecured debt: $12,063.00
- Estimated interest charges: $6,138.53
- Time to payoff: 11 years, 1 month
- Total monthly payments: $491.32
After DMP enrollment:
- Average negotiated interest rate: 0.00%
- Total interest charges: $0.00
- Time to payoff: 3 years
- Total monthly payment: $333.00
How much does a debt management program cost?
Your initial consultation with a credit counsellor is 100% free. In fact, many of our services have no charge That way, you can get a complete debt and budgeting assessment, along with recommendations on your best solutions for debt relief without incurring another bill to pay.
If a debt management program is your best option and you choose this option, then there are nominal setup and monthly maintenance fees to service your account. Fees vary depending on your level of debt, but are capped nationally at $59. This fee is rolled into the monthly program payment and is relatively low compared to other solutions, such as loan origination fees for consolidation loans and fees charged for debt settlement.