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Find A LenderMoney Mentors: Overview
Money Mentors is an Alberta-based non-profit credit counselling agency founded in 1997. The company aims to help Albertans better manage their debt and build a solid financial future through responsible credit use.
Money Mentors prides itself on being an Accredited member of Credit Counselling Canada. Since its inception, Money Mentors has helped thousands of residents of Alberta take control of their finances and become debt-free.
Our Verdict
| Who Is Money Mentors Best For? | Consumers who: – Live in Alberta – Are overwhelmed with high-interest debts, like credit cards & payday loans, loans, lines of credit – Have tax debt (personal or unincorporated business debt) – have student loans – Want to retain their assets – Are dealing with collection calls or threat of litigation – Want to avoid insolvency |
| What We Like About Money Mentors | – Only credit counselling agency that offers an Orderly Payment of Debts (OPD) program – Offers free tools and resources to manage debt and finances |
| What We Don’t Like About Money Mentors | – Excludes secured debts as do other programs |
What Does Money Mentors Offer?
Money Mentors is a credit counselling agency that provides solutions to individuals and families dealing with debt. They use financial counselling, education and a debt management program called the Orderly Payment of Debts (OPD) program to help Albertans manage their debt.
What Is the Orderly Payment of Debts (OPD) Program?
Money Mentors offers a debt consolidation program legislated under the Bankruptcy and Insolvency Act (BIA) called the Orderly Payment of Debts (OPD) program. It is designed to help consumers become debt-free in no more than five years.
The OPD program is a debt consolidation repayment plan that can help you pay off all your debt within 5 years. The program is a great alternative to bankruptcy or consumer proposals if you’re struggling with your debts and are considering insolvency.
This program consolidates your debts into one monthly payment at a fixed low rate of 5%. You can also keep your assets, and the program will only remain on your credit report for two years following completion of the program.
How Does The OPD Program Work?
If you show ability in your budget for the ODP program payment, you can start the process by contacting Money Mentors and speaking to one of their Accredited Financial Counsellors. The counsellor will review your situation and help you get your program started.
They will submit your application through the provincial court to enter the Orderly Payment of Debts program and notify your creditors. This order will combine your debts into one payment at a fixed interest rate of 5%. The order will also apply a stay of proceedings, which protects you against creditor actions, litigation, collection calls, and wage garnishment.
You’ll make regular monthly payments directly to Money Mentors, as per the court’s decision, which will be divided among your creditors accordingly to eliminate your debt. Your payment amounts will be based on your debt load, what you can afford and what your creditors agree to.
ODP Overview
| OPD Program | |
| Types of Debts Included | Unsecured debts |
| Program Duration | Up to 5 years |
| Interest Rate | 5% |
| Debts You Can Consolidate | Unsecured debts, including: -Credit cards – Personal loans – Overdrafts – Lines of credit – Utility and cell phone bills – Student loans – Payday loans – Tax debt – Over-payment of social services -Unincorporated business tax debt or corporate taxes if the business is no longer operating. |
| Debts You Can’t Consolidate | Secured debts, like mortgages and car loans |
| Credit Effect | – R7 rating – Remains on credit report for 2 years after completion |
| Cost | No start-up fees Only a monthly fee of around 10% of your monthly payment (up to a maximum of $50) |
| Impact On Assets | Keep all assets |
| Administration | Administered by Money Mentors |
| Legally Binding | Yes. Legislated under the Bankruptcy and Insolvency Act (BIA) |
Does The ODP Program Affect Your Credit?
Yes, Money Mentors’ OPD program can affect your credit score. Here are some important things to consider:
- R7 Credit Rating: The OPD program will be noted on your credit report with an R7 rating. This can be seen by future lenders. It will remain on your credit report for 2 years after completion. This status is less severe than a bankruptcy (R9 rating), but it can still impact your ability to secure new credit.
- Recovery Time: Money Mentors can help you rebuild your credit while on the OPD program, as well as after you become debt-free.
Learn more: How Long Does Credit Information Stay On Your Credit Report?
Does The ODP Program Affect Your Assets?
The OPD program is designed to help protect your assets, which would otherwise be affected in bankruptcy. This is a key benefit of this program.
As such, the OPD program is ideal for those looking to get out of debt without suffering the effects of bankruptcy. You can keep your home, vehicle, and other valuable assets if you make the required payments.
Does The ODP Program Stop Collection Calls?
Yes, all collection calls should stop once you’re enrolled in the OPD program as it is registered with the courts. This can relieve you of the stress that tends to come with collection calls, allowing you to focus on paying off your debts. Legal actions and threats of wage garnishments should also stop.
However, you must keep up with the agreed-upon monthly payments to ensure protection against continued efforts from collection agencies.
Benefits Of the ODP Program
There are several perks to Money Mentor’s OPD program:
- Keep Your Assets. Unlike bankruptcy, the OPD program lets you keep your assets, such as your home and car.
- Stops Collection Calls. Enrolling in the OPD program stops collection calls and legal actions from creditors.
- Lower Interest Rate. The OPD program comes with a low rate of 5%, which is much lower than typical credit card and unsecured personal loan rates.
- One Payment. Consolidate several unsecured debts into one monthly payment, streamlining and simplifying debt management.
- Structured Repayment Plan. The OPD program can help you become debt-free within 5 years, providing you with a clear timeline.
- Taxes: The OPD program can help you address any outstanding tax issues.
How To Apply with Money Mentors
To apply for the OPD program with Money Mentors, follow these steps:
Step 1: Make A Free Credit Counselling Appointment
Start by booking a free financial assessment. Appointments are available Monday to Saturday (including Monday to Thursday evenings). To book your call, visit this page and enter the following information:
- Name
- Email address
- Phone number
- Reason for booking the call
Step 2: Review Your Finances
During your first credit counselling appointment, an Accredited Financial Counsellor will evaluate your financial information, including your income, assets, expenses, and debts. Based on this data, they’ll help you understand your financial situation and provide solutions.
Step 3: Choose A Debt Relief Option
The counsellor will provide an unbiased opinion about what steps you may want to take to deal with your financial issues. You’ll be educated on the tools available to help you decide the best approach to managing your debt.
If you choose to proceed, your counsellor will guide you in setting up a plan of action to deal with your finances.
Can You Access Money Mentors If You’ve Already Filed For Bankruptcy?
Whether or not you’re in debt, you can still access Money Mentor’s free credit counselling services and financial assessments. All you need to do is call Money Mentors and an Accredited Financial Counsellor will help you learn how to budget effectively and save for later years.
That said, eligibility for the OPD program is more restrictive. You cannot be in an active Consumer Proposal or Bankruptcy to qualify for the OPD program. You’ll need to wait until you’ve been discharged from insolvency to enroll in the OPD program.
Learn more: Bankruptcy In Canada
ODP Vs. Consumer Proposal Vs. Bankruptcy
The following chart explains the key differences between Money Mentor’s OPD program, consumer proposal, and bankruptcy:
| OPD Program | Consumer Proposal | Bankruptcy | |
| Credit Effect | – R7 rating – Remains on credit report for 2 years after completion | – R7 rating – Remains on credit report for 3 years after completion | – R9 rating – Remains on credit report for 6-7 years after completion |
| Cost | No start-up fees – Monthly fee of around 10% of your monthly payment (up to a maximum of $50) | – Filing Fee: $105 – Financial Counselling Fees: $170 – Administration fees: ~$1,500 | $1,800+- Financial Counselling Fees |
| Impact On Assets | Keep all assets | Asset value is taken into consideration & can affect what is offered to creditors | Surrender assets, with exceptions |
| Duration | Up to 5 years | Up to 5 years | 9 – 21 months for a first time bankrupt |
| Administration | Administered by Money Mentors | Administered by Licensed Insolvency Trustee | Administered by Licensed Insolvency Trustee |
What We Think You Should Watch Out For
There are potential drawbacks to the OPD program that you should consider before enrolling:
- Full Debt Repayment Required. Unlike a consumer proposal or bankruptcy, the OPD program does not forgive you of any part of your debt. Instead, you must pay back the entire amount.
- Impact On Credit Score. While not as negative as bankruptcy, the R7 credit rating associated with the OPD program can impact your credit score. For some, the OPD improves a consumer’s score, and for others, it reduces their score.
- Excludes Secured Debts. Only unsecured debts are dealt with in the OPD program. Secured debts, like mortgages and car loans, are not covered.
Are Money Mentors Safe?
Yes, Money Mentors is safe. The non-profit organization has been around since 1997 and is transparent about its fees, services, and potential impacts on credit. The company is a founding member of Credit Counselling Canada and is the first to be accredited.
Money Mentors also focus on the security and confidentiality of consumer data, ensuring that financial and personal information is kept safe.
What Do Consumers Think of Money Mentors?
Before using the services of Money Mentors to help you with your unmanageable debt, consider what others are saying about the organization:
| Better Business Bureau (BBB) | – Accredited – A+ rating – No reviews |
| Yelp | 3.8/5 stars |
| – 4,000 followers –96% recommend | |
| ~1,000 followers | |
| Physical Location | Offices in Edmonton & Calgary |
Final Thoughts
Money Mentors is a great option for Albertans seeking help with debt repayment and financial counselling. This is especially true for those looking to avoid a consumer proposal or bankruptcy. If you’re considering using their services, book a free consultation to explore your options.
