Credit counselling is guidance and education on budgeting and managing debt, usually provided by a non-profit credit counselling agency. It may include setting up a debt management plan. Credit counselling is one route among several. The main alternatives are a debt management plan, a consumer proposal filed by a Licensed Insolvency Trustee, debt consolidation, debt settlement, and bankruptcy. DACL is not a credit counselling agency. We assess your situation, explain the full picture, and refer you to the right professional.
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Credit counselling is an advisory service. A counsellor reviews your budget and debts, helps you build a repayment plan, and offers education on managing money. Most credit counselling in Canada is provided by non-profit agencies.
In many cases, credit counselling leads to a debt management plan, where the agency arranges one monthly payment to your creditors, often with reduced or waived interest. So counselling is the advice, and a DMP is one structured outcome of that advice. You can read more about how a debt management plan works.
Several recognized non-profit agencies provide credit counselling in Canada, including the Credit Counselling Society, Money Mentors, and Consolidated Credit Counseling Services of Canada. We reference these agencies for context only. DACL is not affiliated with them and does not endorse any specific agency.
If you are searching for a specific agency by name, the useful question is not just "is this agency legitimate" but "is credit counselling the right route for my situation, or does something else fit better." That is the question this page is built to answer.
Credit counselling is not the only path. Here is the short version of each main alternative, with a link to read more:
The key difference comes down to two things: whether the route is voluntary or legally binding, and who administers it.
Credit counselling and a DMP are voluntary and run by a counselling agency. A consumer proposal and a bankruptcy are legally binding processes under the Bankruptcy and Insolvency Act, and only a Licensed Insolvency Trustee can file or administer them. Debt consolidation is a borrowing product from a lender. Debt settlement is an informal arrangement, often with a for-profit company.
The rule of thumb is this: if you can repay your principal with some interest relief, a DMP or consolidation may fit. If you cannot realistically repay the full amount, a consumer proposal may be worth understanding. A free assessment can help you see which side of that line you are on.
DACL is a debt assessment and referral service. We review your situation, explain how credit counselling and every alternative works, and refer you to the right professional. We are not a credit counselling agency, and we are not affiliated with the agencies named on this page.
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We review your situation and explain all your options in plain language — credit counselling, DMP, consumer proposal, consolidation, and more.
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Where counselling fits, we point you to it. Where another option fits, we explain that too and connect you with the right professional.
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DACL is not a Licensed Insolvency Trustee, a lender, a law firm, or a government program.
We've been helping Canadians since 2009. Here is what people ask most:
Credit counselling is guidance and education on budgeting and managing debt, usually through a non-profit agency, which may include setting up a debt management plan.
No. DACL is a debt assessment and referral service. We help you understand your options and refer you to the right professional.
A debt management plan, a consumer proposal administered by a Licensed Insolvency Trustee, debt consolidation, debt settlement, and bankruptcy, depending on your situation.
No. Credit counselling and a DMP are voluntary. A consumer proposal is a legally binding process under the Bankruptcy and Insolvency Act, administered by a Licensed Insolvency Trustee.
It depends on your debt, income, and goals. A free, confidential assessment can help you understand which option may fit.
A short, free, confidential assessment is the simplest way to see whether credit counselling or another option suits your situation. There is no cost and no pressure.
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By Ishank · Debt Education & Content · Debt Advisors Canada
Last updated:
General information, not legal, financial, or professional advice. Confirm your situation with a licensed professional. Debt Advisors Canada is not a Licensed Insolvency Trustee, a lender, or a government program.