Personal debt continues to be a source of financial stress for many people in Saskatchewan. Situations such as losing a job, dealing with a disability, or facing an unexpected financial emergency can make meeting daily expenses difficult.
Fortunately, there are several solutions available to help consumers in Saskatchewan regain control over their finances. Let’s review the debt relief tools available in Saskatchewan and how they might help you deal with your financial issues.
Debt Relief Solutions In Saskatchewan
Here are some popular debt relief options available in Saskatchewan. The best option for you depends on your specific situation:
| Debt Consolidation Loan | A debt consolidation loan lets you combine several existing debts into a single loan, usually at a lower interest rate. This option simplifies repayments by merging multiple bills into one monthly payment, potentially saving you lots of money in interest. |
| Debt Consolidation Program | A debt consolidation program is a structured repayment option facilitated by a credit counsellor, who negotiates with your creditors to consolidate what you owe into a single monthly payment. Unlike a debt consolidation loan, this program doesn’t require new borrowing. Instead, it focuses on streamlining payments to make them more manageable. |
| Consumer Proposal | A consumer proposal is a legally binding offer made to your creditors to pay a portion of your debt over a fixed period. If your creditors agree to your proposal, all collection efforts and additional interest will stop. This allows you to keep your assets while settling your debts for less than what you owe. |
| Bankruptcy | Bankruptcy is a legal process that offers relief by eliminating most unsecured debts. It puts an immediate stop to collection calls and wage garnishments, though you may lose assets and your credit health may be significantly impacted. |
How Does Your Debt Compare In Saskatchewan?
As of the first quarter of 2025, consumers in Saskatchewan carried an average non-mortgage debt of $23,194, an increase of 2.82% from the same time last year. This increase has been fueled by high housing expenses, inflation, and slow wage growth.
Checking how your debt stacks up against the provincial average may help identify your level of financial risk and if professional support might be needed. If your balance is significantly higher than this provincial average, it may be a good time to explore available relief solutions.
Seeking Support For Debt?
If your debt is overwhelming and your efforts haven’t helped, consider reaching out for help. Reputable credit counselling services can help you come up with a suitable repayment strategy, create a household budget, and explore personalized solutions.
If you need more serious intervention, like bankruptcy or a consumer proposal, connecting with a licensed insolvency trustee (LIT) is recommended. Only LITs can administer these types of proceedings.
| Do credit counsellors require licencing in Saskatchewan? No, unlike LITs, credit counsellors do not have to be licensed in Saskatchewan. |
How To Find A Credit Counsellor Or Licensed Insolvency Trustee In Saskatchewan
If you’re looking for professional assistance with managing your debt, several organizations and experts can guide you based on your needs and financial situation.
Here are a few reputable agencies and resources worth considering when seeking debt help:
| Agency | Services | |
| Credit Counselling Society | Credit counselling Bankruptcy help Debt consolidation Debt Settlement Program Consumer proposal Debt management program | Learn More |
| Credit Counselling Canada (CCC) | Credit counselling Financial literacy education Debt repayment | Learn More |
| Consolidated Credit Counseling Services of Canada | Credit counselling Debt management Debt consolidation Consumer proposal Bankruptcy | Learn More |
These sources are also useful for finding a credit counsellor near you:
Debt Consolidation Loans
A debt consolidation loan is a financial option that allows you to pay off multiple debts — such as credit card balances, personal loans, and other high-interest debts — by combining them into one single loan. This helps simplify your monthly payments and can reduce the overall interest you pay compared to your current debts.
There are several types of loans that can be used for debt consolidation:
- Personal Loans: These provide a lump sum that you repay in fixed installments over a specific term. Personal loans can be secured, which typically offer lower interest rates and higher loan amounts since they’re backed by collateral, which lowers the lender’s risk. Or, personal loans may be unsecured, which may come with higher rates because they increase the lender’s risk.
- Second Mortgages: If you’re a homeowner, you may access the equity in your property to consolidate your debts by taking out a second mortgage, often at a lower interest rate compared to unsecured loans.
- Balance Transfers: If you have significant credit card debt, balance transfer credit cards allow you to move balances from high-interest cards to one with a promotional 0% or reduced interest rate for a limited time. This can help reduce interest costs if you pay off the balance within the promotional period.
| Does Debt Consolidation Impact Your Credit Score? Taking out a consolidation loan may temporarily lower your credit score due to hard inquiries when applying. Additionally, closing paid-off credit accounts can reduce your credit age and credit mix, which can also negatively influence your credit rating. However, long-term benefits often include improved credit if payments are made on time. |
Debt Management Program (DMP)
A debt management program is a structured plan where a credit counsellor negotiates with your creditors on your behalf. The goal is to come up with a repayment arrangement that you can afford and that fits your financial situation better. The counsellor will initially review your finances to determine if a DMP is the right solution for you.
Once enrolled, the counsellor negotiates with creditors to lower interest rates, waive fees, and stop collection calls. If the creditors agree, your outstanding debts will be combined into one affordable monthly payment. Payments are then made directly to the credit counsellor, who will distribute the funds to your creditors.
Debt Settlement
Debt settlement involves a debt settlement company negotiating with your creditors to work out a repayment plan that benefits everyone involved. If successful, you’ll make a lump-sum payment to the debt settlement company, which then distributes the funds to your creditors to settle your debts.
Consumer Proposal
A consumer proposal is a formal arrangement where an LIT negotiates with your creditors on your behalf. The trustee presents a repayment plan offering to pay back a portion of your total debt over an agreed length of time. This option is suitable for those with unsecured debts less than $250,000 (excluding mortgages). Depending on your circumstances, it can reduce your overall unsecured debt by up to 80%.
Learn more: Consumer Proposals Saskatchewan
Bankruptcy
Bankruptcy is a legal process designed as a last resort for those unable to repay their debts. It provides a way to discharge most unsecured debts completely while offering protection from creditor actions. Also administered only by an LIT, bankruptcy stops collection efforts, legal penalties, and wage garnishments.
During the process, you make payments to the court over a period of 9 months, which can extend to 21 months if you have surplus income. After completing the required duties, you will receive a discharge, releasing you from your debts.
Learn more: Bankruptcy Saskatchewan
Important Considerations When Getting Help With Your Debt
Before deciding on a debt relief method, keep the following points in mind:
Know Your Rights
If you owe money, creditors may take steps to recover the debt. However, in Saskatchewan, debt collection activities are governed by the Collection Agents Act. These regulations require the following:
- Creditors must be licensed.
- Creditors must not harass consumers, provide false information, or contact consumers outside of approved hours.
- Creditors must provide written communication to consumers before pursuing debt collection.
If you feel you’ve been mistreated by a creditor, you may contact the Financial & Consumer Affairs Authority (FCAA) Consumer Protection Division:
- Phone: 1-877-880-5550
- Email: consumerprotection@gov.sk.ca
- Address: 4th Floor, 2365 Albert Street, Regina, SK, S4P 4K1
Beware Of Scams
While most credit counselling services are trustworthy, some fraudulent agencies may take advantage of vulnerable individuals. Watch out for red flags of potential scams, such as the following:
- Demands for upfront payment before providing services
- Promises to quickly erase debt or instantly fix credit
- Pressure to sign agreements immediately
- Requests for sensitive financial information over the phone
- No physical office location
To avoid becoming the victim of fraud, take the following precautions:
- Read client reviews
- Verify contact information and physical address
- Never share personal financial details until you’re certain you’re working with a legitimate agency
Fees
Credit counselling and LIT services may charge fees, though some counselling agencies offer free introductory sessions, but fees can apply. It’s important to ask about all charges upfront.
LIT fees are regulated by the government and are typically built into the overall debt relief process, so separate or upfront payments are not usually required.
Other Programs In Saskatchewan To Help You Get Out Of Debt
In addition to the debt relief options suggested above, various programs exist in Saskatchewan to help residents manage essential living expenses. You can find them on online platforms like www.211.ca, which list a myriad of program options available throughout the province to meet specific needs. Here are a few examples:
Rent Assistance
If you’re having trouble covering your rent payments, the Rental Housing Program provided by Saskatchewan Housing Corporation is available to low-income families and those with disabilities. The program subsidizes rent based on individual financial needs.
Utility Support
Through a partnership between the provincial government and SaskPower, the Energy Assistance Program offers financial help to lower-income households to cover utility bills. If you’re having a hard time paying your utility bills, this subsidy may help avoid interruptions in service.
Housing Shelters
If you’re facing homelessness, several emergency shelters are open to local residents. Here are a few to consider:
- New Beginnings Emergency Shelter: 1600 Halifax Street, Regina SK S4P 1S8
- The Mustard Seed Emergency Shelter: 210 Pacific Avenue, Saskatoon SK S7K 0H8
- Salvation Army – Regina Waterston Ministries: 1845 Osler Street, Regina SK S4P 1W1
Food Banks
Food banks are located throughout Saskatchewan dedicated to assisting those experiencing food insecurity. Here are a few food banks available in the province:
- Unity and District Food Bank: Unity Community Resource Centre, 210 Main Street, Unity SK S0K 4L0
- Kipling Food Bank: 207 6th Avenue, Kipling SK S0G 2S0
- Regina Food Bank: 445 Winnipeg St., Regina SK S4R 8P2
Learn more: How To Find Food Banks In Canada
Affordable Housing Program
Administered by Silver Sage Housing Corporation, this initiative offers government-backed housing with rent set below market rates, making accommodation more affordable for eligible residents.
