Debt Relief Experts
If you are struggling with debt, taking the step to seek debt counselling is the best action you can do for yourself. Debt does not go away on its own. Debt just makes managing your money that much harder, especially in a city like Toronto where the cost of living is high. You need a debt management plan that can get you out of debt.
You are in the right place if you experience any of these debt warning signs:
- Collection calls and demands to pay from creditors
- High credit card debt balances
- Making only minimum payments
- Regularly missing or making late payments
- Using payday loans to make ends meet
- Your wages are being garnished
- A creditor or the CRA has frozen your bank account
If you can’t pay your debts in full, Hoyes Michalos has both trained credit counsellors and licensed insolvency trustees on staff to help you find the right debt relief solution.
Toronto Credit Counselling Services
Good credit counselling starts with exploring all your debt management options.
At Hoyes, Michalos we start with a free debt assessment and a full review of your personal financial situation and budget. Many residents of Toronto struggle with high rents and large mortgage payments. If you want to keep your home and balance your budget you need a debt plan that meets those challenges.
We explain the pros and cons of all your financial options including:
- Budgeting
- Debt consolidation loan
- Debt management plan
- Consumer proposal
And while we can offer bankruptcy as a debt solution, that is seldom necessary. Less than 10% of the people we help need to file bankruptcy. We’ll only suggest that option if there is no other alternative.
Our goal is to help you develop a plan that is tailored to your personal financial situation and is something you can afford so you can complete the program and become debt free.
Why talk to a trustee about credit counselling?
There are many advantages to working with a Toronto Licensed Insolvency Trustee for credit counselling advice. You have the assurance of working with someone who is federally regulated to provide advice and services for those experiencing severe debt problems. LIT’s are the most highly qualified debt professionals you can see. Our goal is to help you make an informed choice to deal with your debt.
Not-for-profit credit counselling agencies can help you build a budget and create a repayment plan. This plan, however, requires that you repay 100% of your debts. Only a licensed insolvency trustee like Hoyes, Michalos can provide actual debt relief programs and full protection from creditor actions.
We are experienced in dealing with large and complex debt problems. We have the tools to help you eliminate:
- credit card debts
- bank loans and installment loans
- outstanding bill payments
- payday loans
- tax debts
- student debts
Credit counselling vs consumer proposal
As Licensed Insolvency Trustees, Hoyes Michalos can offer a program called a consumer proposal.
A consumer proposal is the only debt consolidation program that allows you to both consolidate all your unsecured debts and repay less than you owe.
Credit counselling requires you to pay back all of your debts plus a fee, usually an extra 10%. For those who cannot afford to repay their debts, a consumer proposal is the best debt consolidation program available.
| Features | Credit Counselling | Consumer Proposal |
| Service provider | Credit Counsellor | Licensed Insolvency Trustee |
| Program | Debt Management Plan | Consumer Proposal |
| Repayment Amount | Must pay back 100% | Up to 70% reduction |
| Interest charges | Sometimes waived or reduced | 0% |
| Extra Fees/Costs | 10% + sign-up fee ($50-$100) | None |
| Creditor Protection | Voluntary participation Credit actions may continue No legal protection |
Binding on all creditors Legal Protection from creditor actions Stops wage garnishments |
| Credit Report | Earlier of:
|
Earlier of:
|
You may have read in the chart above that the credit score impact is the same for both a consumer proposal and credit counselling. That is entirely true. The reason is both are considered a debt consolidation program or debt repayment plan by TransUnion and Equifax. The key benefit of a proposal is that your monthly payments are significantly less, allowing you to save money and recover that much sooner.
Financial Recovery and Education
If you file with us, you will be enrolled in our Fresh Start Recovery Program and receive two, free credit counselling sessions with a certified credit counsellor. If you want a free third session, we are happy to provide that as well. These sessions are there to help you identify the reasons that caused your financial difficulties.
During these sessions, we provide tips and recommendations on:
- how to create a budget
- key money management and savings tips
- financial goal setting
- how to borrow and use credit wisely
- how to identify and change poor money habits
- how to take steps to rebuild your credit
Get Credit & Debt Counselling from a Licensed Professional
If you are experiencing debt problems and are looking for debt relief, contact Hoyes Michalos to explore your options. We provide a full range of credit counselling services to ensure you make an informed decision on how best to deal with your debt.
With 9 locations across Ontario, an A+ rating on the Better Business Bureau and an excellent rating from our clients, we will work tirelessly to provide you with the best debt solution for you and your family.
When working with Hoyes Michalos you are guaranteed respect, confidentiality, and expert financial advice. At Hoyes Michalos we believe you should always talk with a professional. For over 20 years we’ve focused solely on helping individuals find debt relief.
To reach us, call us at 1-866-747-0660 or contact any of the trustees in any one of our Greater Toronto Area locations.