Mounting consumer debt is becoming an increasingly significant issue for many residents of Nova Scotia. Life events like job loss, health challenges, or sudden expenses can make it hard to keep up with everyday costs.
Thankfully, a variety of support options exist to help residents manage their financial burdens. Below, we’ll explore the debt relief resources available in Nova Scotia and how they can assist you in rebuilding your financial stability.
Debt Relief Solutions In Nova Scotia
The following debt relief options are available in Nova Scotia. The best program for you depends on your particular financial situation:
- Debt Consolidation Loan: A debt consolidation loan is a type of personal loan used to combine multiple debts into one monthly payment, often at a lower interest rate than credit cards or other unsecured debts.
- Debt Consolidation Program: Offered through credit counselling agencies, a debt consolidation program helps you repay your debts in full with reduced interest, without taking out a new loan.
- Consumer Proposal: A consumer proposal is a legal agreement arranged by a Licensed Insolvency Trustee (LIT) that allows you to pay off a share of your unsecured debt over time, protecting you from collection actions.
- Bankruptcy: Bankruptcy is a legal process that provides relief from most unsecured debts when you’re unable to repay them, but it may involve surrendering certain assets and will significantly impact your credit.
How Does Your Debt Compare To The Nova Scotia Average?
In the first quarter of 2025, the typical non-mortgage debt held by Nova Scotia residents reached $21,296, marking a 2.62% rise from the previous year. This upward trend has been driven by factors like rising housing costs, inflationary pressures, and stagnant income growth.
Evaluating your personal debt against this provincial benchmark can offer insight into your financial health. If your debt load is notably above the average, it may be time to consider professional guidance or explore debt relief options.
Need Help Managing Your Debt?
If you’re feeling buried under debt and your attempts to manage it haven’t worked, it might be time to seek professional assistance. Credit counselling organizations can guide you in building a realistic repayment plan, developing a workable budget, and identifying financial solutions tailored just for you.
For more serious debt challenges — such as filing for bankruptcy or submitting a consumer proposal — it’s important to consult a Licensed Insolvency Trustee, as they are the only professionals authorized to handle these legal processes in Canada.
| Do credit counsellors need a licence in Nova Scotia? No, unlike LITs, credit counsellors in Nova Scotia are not required to hold a licence. |
Where Can You Find A Credit Counsellor Or Licensed Insolvency Trustee In Nova Scotia?
Several credit counselling agencies and LITs are available in Nova Scotia, including the following:
| Agency | Services | |
| Consolidated Credit | – Credit counselling – Debt management – Debt consolidation – Consumer proposal – Bankruptcy | Learn More |
| Halifax Debt Freedom | – Debt consolidation – Debt relief – Credit Counselling | Learn More |
| Bromwich+Smith | – Consumer proposals – Bankruptcy – Debt relief consultation | Learn More |
| BDO Debt Solutions | – Debt counselling – Consumer proposals – Bankruptcy | Learn More |
Also use these sources to find a credit counsellor near you:
Debt Consolidation Loans
A debt consolidation loan can be used to combine multiple debts into a single loan, ideally with a lower interest rate compared to your highest-rate debt. Essentially, you’re borrowing money to pay off all your other debts, like payday loans or credit card balances.
Rather than making several payments to different creditors every month, debt consolidation allows you to make one payment. Not only does this simplify your bills, but it also saves you money since you’re paying a lower rate than your highest-rate loan.
| Can I Get A Debt Consolidation Loan With Bad Credit? Yes, you can get a debt consolidation loan with bad credit. However, it may come with a higher interest rate and stricter terms. Plus, lenders may require collateral or a co-signer to reduce their risk. |
You can consolidate your debt using several loan types, such as:
- Personal Loans: A personal loan is a lump sum loan that you can use for various purposes, such as debt consolidation. It typically has fixed monthly payments and a fixed interest rate over a set term. Approval and loan terms are based on your credit score and financial profile.
- Home Equity Loans: A home equity loan allows you to borrow against the equity in your home, using your property as collateral. It typically has a fixed interest rate and fixed monthly payments over a set term. The loan amount is based on the difference between the value of your home and the outstanding mortgage balance.
- Balance Transfers: With a balance transfer, you move your current card balances from one credit card to a new one, ideally with a lower interest rate. This can save you money on interest and simplify debt management by consolidating several payments into one. Balance transfer cards typically offer an introductory rate of 0% for a set period, during which time you can pay down your debt with no interest.
| Warning: Balance transfer cards typically charge transfer fees, which can add a significant cost to the amount you owe. These fees typically range from 3% to 5% of the amount you transfer. Make sure you factor in these fees when calculating your potential savings. |
Debt Management Program (DMP)
A debt management program is a structured plan facilitated by a credit counsellor to help you repay your unsecured debts. It typically involves consolidating payments into one monthly payment, negotiating lower interest rates with creditors, and coming up with a more manageable repayment schedule. The goal of a DMP is to simplify debt repayment and reduce your overall debt.
A DMP is best if you:
- Are struggling with unsecured debt
- Need help organizing your finances
- Need help negotiating lower interest rates
- Are able to make payments towards your debts
Debt Settlement
Debt settlement is a process where you negotiate with your creditors to reduce the total amount of debt. This involves making payments for less than the full balance owed. It’s an alternative to a consumer proposal or bankruptcy if you’re unable to fully pay off your debts, but still have the means to make partial payments.
| Note: It’s important to know that these options affect your credit score negatively and are recorded on your credit report. Until a certain time has passed, it may be difficult to secure credit products. |
Learn more: Debt Settlement
Consumer Proposal
A consumer proposal is a legally binding agreement where a Licensed Insolvency Trustee (LIT) negotiates with your creditors for you to repay a portion of your debts over a set period. It offers protection from creditors, collection calls, and wage garnishment. This option is suitable if you need structured debt relief and are able to stick to a repayment plan.
Bankruptcy
Bankruptcy is a legal process that’s facilitated by an LIT, and provides relief from actions like wage garnishment and lawsuits. This is a last resort option if you’re unable to pay off your debts. Bankruptcy can eliminate most of your obligations under court protection and provides you with a fresh financial start, though you may lose some of your assets (with certain exceptions).
Before Seeking Debt Assistance, Consider These Things First
Before choosing a debt relief option in Nova Scotia, it’s important to understand a few key factors first.
Your Rights
In Nova Scotia, debt collection practices are regulated under the Collection and Debt Management Agencies Act. This legislation ensures that:
- Collectors must hold a valid licence
- They are prohibited from using harassment, spreading false information, or contacting you outside of permitted hours
- They cannot contact third parties about your debt, except in specific legal circumstances
If you believe a debt collector has violated these rules, you can reach out to the Department of Service Nova Scotia and Internal Services:
- Telephone: 902-424-5200 (local) or 1-800-670-4357 (toll-free)
- Email: askus@novascotia.ca
Potential Scams
Although many credit counselling organizations are legitimate, some dishonest agencies may try to exploit people in financial distress. Here are a few red flags to watch out for:
- Demand for upfront payment before any services are provided
- Guarantees of debt elimination
- Promises of instant credit fixes
- No physical or online presence
- Pressure to sign documents immediately
To stay safe, consider these steps:
- Check online reviews from past clients
- Confirm the agency’s contact information and location
- Don’t share personal financial information until you’ve verified the agency’s legitimacy
Service Fees
Both credit counselling agencies and Licensed Insolvency Trustees may involve fees.
- Credit counselors: Some counselling agencies offer free initial consultations, but it’s wise to ask about all potential costs upfront beforehand.
- LITs: Fees charged by trustees are regulated by federal guidelines and are typically included in the overall debt solution. This means you usually won’t need to make separate or advance payments.
Struggling To Get Out Of Debt? Explore These Financial Aid Options In Nova Scotia
If you don’t want to resort to aggressive debt relief measures, there are still a variety of financial support programs available throughout Nova Scotia. These include both public and private initiatives designed to help residents manage essential expenses.
Food Banks
With grocery costs continuing to rise, many individuals and families rely on food banks for support. Nova Scotia offers several community-based food programs to help residents access nutritious meals, including the following:
- Parker Street Food and Furniture Bank: 2415 Maynard St, Halifax, NS B3K 3V2
- Colchester Food Bank: 580 Prince St, Truro, NS B2N 1G3
- Dartmouth Community Fridge: 61 Dundas St, Dartmouth, NS B2Y 4H5
Learn more: How To Find Food Banks In Canada
Emergency Shelters
Temporary housing is available across Nova Scotia for those experiencing homelessness or at risk of losing their home. These shelters offer safe, short-term accommodations and access to additional support services. Here are a few to consider:
- Metro Turning Point Centre: 2170 Amalamek Wy, Halifax, NS B3K 2W4
- Beacon House Shelter: 125 Metropolitan Ave, Lower Sackville, NS B4C 3H3
- Barry House: 2706 Gottingen St, Halifax, NS B3K 3C7
Housing Support
The Canada-Nova Scotia Targeted Housing Benefit (CNSTHB) provides monthly financial aid to eligible renters and homeowners facing housing affordability challenges. Homeowners may receive up to $200 per month, while renters are supported based on income, household size, and regional rent averages.
Heating Assistance Rebate Program
The Heating Assistance Rebate Program in Nova Scotia offers qualifying residents a one-time payment of $400 to help with the cost of heating their homes during the winter. To qualify, applicants must meet income requirements and be responsible for paying their own home heating expenses.
FAQs On Debt Relief In Nova Scotia
What’s the difference between a debt consolidation loan and a regular loan?
What are the requirements for a consumer proposal?
What types of debt can I consolidate?
What are the benefits of debt settlement?
What’s the difference between debt consolidation loans and debt consolidation programs?
®Fairstone Financial Inc. is a wholly owned subsidiary of Fairstone Bank of Canada.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC.
Fairstone Financial Inc. holds high-cost credit licenses in AB, MB (License #85047, expiring 20-02-2026) and QC; it has applied for a high-cost credit grantor license in NL. For license information by province, visit Fairstone.ca/HCCG
