Mounting consumer debt is a major concern among many residents of Manitoba. Life events such as job loss, illness, or sudden expenses can quickly put you in a financial predicament that can make it hard to keep up with everyday bills.
The good news is that a range of debt relief options are available in Manitoba that can help you regain control of your finances. In this guide, we’ll explore some of the most effective strategies available in the province to help you resolve your debt challenges and start working toward a more secure financial future.
Debt Relief Solutions In Manitoba
Here are some debt relief options available in Manitoba:
| Debt Consolidation Loan | A debt consolidation loan merges several debts into one new loan, often with a lower rate. This approach streamlines your finances by replacing multiple payments with a single monthly installment, which can help you save on interest and simplify your budget. |
| Debt Consolidation Program | A debt consolidation program is an organized repayment plan managed by a credit counsellor. The counsellor works with your creditors to group your debts into a single monthly payment. |
| Consumer Proposal | A consumer proposal is a formal agreement with your creditors to pay back a portion of your debt over a set timeframe. Once the proposal is accepted, creditors must stop collection actions and freeze interest charges. This process lets you retain your assets while settling your debts for less than the full amount owed. |
| Bankruptcy | Bankruptcy is a legal procedure that wipes out most unsecured debts, offering immediate relief from collection calls and wage garnishments. However, it can lead to the loss of certain assets and will have a negative effect on your credit rating. |
Comparing Your Debt To The Manitoba Average
In the first quarter of 2025, the average non-mortgage debt for individuals in Manitoba rose 3.68% year-over-year to $18,171. This uptick is largely due to higher housing costs, ongoing inflation, and modest wage growth.
Knowing how your debt level compares to the provincial average can help you assess your financial standing. If your debt is well above this level, it may be wise to consider solutions for managing or reducing your debt.
Seeking Debt Help In Manitoba?
If your debt feels unmanageable and your own efforts haven’t made a difference, it may be time to get professional advice from a credit counselling organization. These professionals can help you come up with a realistic repayment plan, organize your finances, and recommend solutions tailored to your needs.
For more serious debt situations — such as bankruptcy or filing a consumer proposal — you’ll need to consult with a Licensed Insolvency Trustee (LIT). Only LITs are authorized to facilitate these legal processes in Manitoba.
| Are Credit Counsellors Licensed In Manitoba? Credit counsellors in Manitoba are not required to obtain a license, unlike trustees. |
Where To Get Professional Debt Help In Manitoba
If you need help managing your debts, there are various professionals and organizations in Manitoba available to help you find the right solution for your unique situation.
Below are some trusted resources and agencies you can turn to for support with debt management:
| Agency | Services | |
| Consolidated Credit | – Credit counselling – Debt management – Debt consolidation – Consumer proposal – Bankruptcy | Learn More |
| Credit Counselling Society | – Credit counselling services – Financial advice – Debt consolidation – Debt management program – Debt settlement program – Consumer proposal – Bankruptcy | Learn More |
| 4 Pillars | – Credit counselling – Credit rebuilding – Debt consolidation – Consumer proposals – Bankruptcy | Learn More |
| BDO Debt Solutions | – Debt counselling – Consumer proposals – Bankruptcy | Learn More |
Debt Consolidation Loans
A debt consolidation loan is a type of loan that allows you to combine many debts into one loan, ideally with a lower rate.
In this scenario, you would use the funds from a new loan to pay off your existing debts, like credit card balances and other unsecured debts. If the new loan has a lower interest rate than your current debts, you can save money on interest payments. Plus, replacing multiple bill payments with just one loan payment can make it easier to manage your finances.
Learn more: Debt Consolidation Loans
| How Will Your Credit Score Be Affected By A Debt Consolidation Loan? Applying for a debt consolidation loan can cause a short-term dip in your credit score, mainly because lenders perform hard credit checks during the application process. Also, once you pay off and close old credit accounts, your overall credit history may shrink and your credit mix could narrow. Both factors that can put downward pressure on your credit rating. On the bright side, consistently making timely payments on your new loan often leads to better credit health over time. |
You can use a few financing programs to consolidate your debt:
- Personal Loans: A personal loan is a type of loan that can be used for various purposes, including consolidating debt. They’re often unsecured, which means no collateral is required. Over the loan term, you make regular installment payments until the loan is paid off.
- Home Equity Loans: Also referred to as a ‘second mortgage’, a home equity loan allows you to access your home equity in a lump sum. You can then use the funds to consolidate your debt, then make loan repayments as you would a typical installment loan. Because the loan is backed by a valuable asset (your home), you may be able to qualify for a lower rate and larger loan amount, even if your credit score isn’t the greatest.
- Balance Transfer: A credit card balance transfer involves moving the balance of one card to a balance transfer card, typically to benefit from a very low or zero interest rate for a specific amount of time. The new credit card provider will pay off the balance on your old credit card, and the balance will be added to your new credit card’s balance.
| Note: Balance transfer fees may apply, which can range from 3% to 5% of the transferred amount. Also, if you don’t repay the entire balance during the low-rate or 0% promotional period, the regular credit card rate will apply. To take advantage of a balance transfer card, you should work to pay off your entire balance before this introductory period ends. |
Debt Management Program
A debt management program (DMP) is a process facilitated by a credit counsellor who will review your financial situation and options. They will negotiate with your creditors on your behalf to come up with an alternative arrangement for you to pay your debts with one consolidated monthly payment. Then, you’ll have up to 5 years to complete your payments.
What Types Of Debts Can Be Included In A DMP?
Generally speaking, DMPs include unsecured debts, like personal loans or credit cards. They typically don’t deal with secured debts, like mortgages or car loans.
Debt Settlement Program
A debt settlement program involves negotiating with creditors to lower the total debt owed, letting you pay a lump sum that is less than your original debt. These programs are typically managed by a third party, who works on your behalf to reach agreements with your lenders.
While this option can help you get out of debt faster, it may negatively affect your credit score and not all creditors will agree to settle.
Learn more: Debt Settlement
Consumer Proposal
A consumer proposal is a legally binding agreement arranged through an LIT, where you offer to pay back a share of your debts over a set period. Once accepted by your creditors, you make fixed monthly payments and receive protection from further collection actions.
This process allows you to avoid bankruptcy while settling your debts for less than you owe.
Learn more: Consumer Proposals Manitoba
Bankruptcy
Bankruptcy in Canada is a legal process that provides relief to individuals unable to repay their debts by surrendering certain assets to a Licensed Insolvency Trustee, who distributes them to creditors. Once declared bankrupt, you are freed from most unsecured debts and receive protection from collection efforts.
However, bankruptcy has a significant impact on your credit rating and may require you to give up some possessions.
Before Getting Debt Help, Consider This
Choosing a debt relief option in Manitoba requires careful consideration. Before making your choice, keep the following points in mind.
Know Your Consumer Rights In Manitoba
In Manitoba, debt collectors are bound to the rules under the Consumer Protection Act, which prevents harassment, deceptive behaviour, and unauthorized seizure of property by collectors. The Limitations Act is also in effect, which restricts creditors to a two-year window in which they can take legal action to recover a debt.
If you’ve been unfairly treated by a debt collector or creditor in Manitoba, consider filing a complaint with the Consumer Protection Office for the issue to be investigated. They can be contacted in the following ways:
- Mail: Consumer Protection Office, 302-258 Portage Ave., Winnipeg, MB, R3C 0B6
- Phone: 204-945-3800; 1-800-782-0067 (toll-free)
- Email: consumers@gov.mb.ca
Be Wary Of Fraud
While most credit counselling services are reputable, some are dishonest and prey on people seeking financial help. Be alert for warning signs of a scam, including the following:
- Requests for payment before any services are provided
- Guarantees to eliminate your debt or repair your credit instantly
- High-pressure tactics urging you to sign contracts immediately
- Asking for sensitive financial details over the phone
- Lack of a business address
| Protect Yourself From Scams Follow these safety tips: – Check online reviews from past clients – Confirm the agency’s contact details and physical location – Only share your financial information once you are confident you’re dealing with a legitimate organization |
Understand Potential Service Fees
Both credit counselling agencies and Licensed Insolvency Trustees may charge fees for their assistance. However, some counselling organizations provide free initial consultations. Always inquire about any potential costs before committing to a service.
It should be noted that fees for LIT services are set by government regulations and are generally included as part of the debt relief arrangement. That means you typically won’t need to make separate or advance payments.
Still Need Help? Check Out These Assistance Programs In Manitoba
In addition to the above-mentioned debt relief options, several programs are available in Manitoba to help consumers manage their bills and essential costs. Here are a few examples:
Utility Assistance
Manitoba Hydro offers programs to help residents who are at risk of falling behind on their energy bills to avoid interruption of services. Options include scheduled payment plans, one-time emergency funding, and customer arrears assistance plans.
Rent Assistance
If you’re having trouble keeping up with rent payments, the Rent Assist program in Manitoba provides financial support for this purpose. You’ll need to be receiving Employment and Income Assistance (EIA) and show that you need help paying for housing to receive this benefit. It’s also accessible to low-income tenants renting in the private market.
Learn more: Loans For Rent And Utilities
Food Banks
Food insecurity is becoming a huge issue in Manitoba and across Canada. If you’re struggling to keep up with grocery bills, there’s a food bank near you to help ensure you have food on the table for your family:
- Harvest Manitoba: 1085 Winnipeg Ave, Winnipeg, MB R3E 0S2
- South East Helping Hands: 525 Main St, Steinbach, MB R5G 1K4
- Samaritan House Ministries: 820 Pacific Ave, Brandon, MB R7A 0J1
Learn more: How To Find Food Banks In Canada
Emergency Shelters
If you’re on the brink of homelessness or are currently living on the streets, there are several housing shelters available in Manitoba that can provide you with temporary housing:
- Main Street Project: 637 Main St, Winnipeg, MB R3B 1A5
- our relatives place: 190 Disraeli Fwy, Winnipeg, MB R3B 2Z4
- North Star Lodge: 105 Aikins St, Winnipeg, MB R2W 4E6
