Where to get free debt help in Canada
In Canada, non-profit credit counselling and Licensed Insolvency Trustees are the two main sources of legitimate debt help.
The two legitimate routes
| Route | What it does | Cost |
|---|---|---|
| Non-profit credit counselling | Budgeting help and negotiation with creditors | Usually free or low cost |
| Licensed Insolvency Trustee | Administers consumer proposals and bankruptcies under the Bankruptcy and Insolvency Act | Fees are set by regulation and paid from the estate |
Credit counselling
Non-profit credit counselling services help you build a budget and can contact creditors on your behalf. They are typically funded by creditors and community organisations rather than by you.
Licensed Insolvency Trustees
A consumer proposal or a bankruptcy can only be administered by a Licensed Insolvency Trustee. The trustee assesses your situation and must explain the alternatives to you before you decide.
How to spot a bad deal
- Large upfront fees before any service is provided.
- Promises to remove accurate negative information from your credit report.
- Pressure to take on a new loan to pay off existing debts.
- Claims that a specific outcome is guaranteed.
If you are being contacted by a collector
You can ask for the debt in writing and dispute anything you do not recognise. If you cannot resolve it, a non-profit credit counsellor or a Licensed Insolvency Trustee can explain your options.
Promissory.ca is not a credit counsellor or a Licensed Insolvency Trustee and does not provide debt advice.
Source: Office of the Superintendent of Bankruptcy — Government of Canada — OSB. Retrieved 2026-09-16.
Source: Financial Consumer Agency of Canada — Financial Consumer Agency of Canada. Retrieved 2026-09-16.
Sources
- Office of the Superintendent of Bankruptcy — Government of Canada — OSB
- Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
- PIPEDA — Personal Information Protection and Electronic Documents Act — Office of the Privacy Commissioner of Canada
Frequently asked questions
Is credit counselling really free?
Non-profit credit counselling services are usually free or low cost. Be cautious of for-profit companies charging large upfront fees.
What is the difference between credit counselling and a consumer proposal?
Credit counselling focuses on budgeting and negotiating with creditors. A consumer proposal is a formal insolvency proceeding administered by a Licensed Insolvency Trustee.
Do I have to pay a Licensed Insolvency Trustee upfront?
Trustee fees for a consumer proposal or bankruptcy are set by regulation and generally paid out of the estate rather than upfront. Ask the trustee to explain the costs before you proceed.
Can a company really remove negative items from my credit report?
No. Accurate information stays on your report for the period set by law. Only genuine errors can be corrected, and you can dispute those yourself for free.
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.