100+ Canadians Choose Us Weekly – 800+ All 5-Star Reviews – Read real stories here

Learn how to reduce your debt by 50-80% within 5-7 days

Free Debt Consolidation

No contact details required to find out if you qualify

Free Savings Estimate

Get Started

How it Works

Know More

Debt Relief Options

See Your Options

Debt Consolidation vs Debt Settlement: What's the Difference?

You are not alone if you are suffering with debt in Canada. The average household in Canada owes approximately $74,000 in debt, which includes mortgages, credit cards, and other loans. It's no wonder that so many people are looking for solutions to escape their debt because it's a frighteningly high amount.

Debt settlement and debt consolidation are two well-liked methods of debt relief in Canada. Both can be useful strategies for controlling debt and regaining financial stability, but they operate in quite different ways. If you want to select the best option for your circumstance, you must fully comprehend the distinctions between the two.

We'll look more closely at debt consolidation and debt settlement in this article, including how they work and which might be the best option for you.

Know more about us and what we can do by clicking on the button below…

You're not alone

Helped with $ 27,000 $ 41,500 $ 35,000 $ 17,000 $ 23,500 $ 46,340 $ 21,000 $ 35,000 $ 26,700 $ 65,500 $ 57,400 $ 17,500 $ 75,500 $ 63,000 $ 35,000 $ 18,500 $ 55,000 $ 85,500 $ 43,000 $ 29,500 $ 27,800 $ 41,200 $ 35,800 $ 85,000 in debt

1 day 3 days 3 days 8 days 7 days 6 days 12 days 9 days 3 days 6 days 1 day 4 days 2 days 1 day 7 days 5 days 8 days 6 days 12 days 16 days 5 days 8 days 2 days 7 days ago in debt in

Orillia Huntsville Peterborough Toronto Brampton Kitchener Mississauga Hamilton Belleville Kingston Cornwall Oshawa Ajax St. Catharines London Sarnia Windsor Sault Ste. Marie Elliot Lake Sudbury North Bay Timmins Thunder Bay Ottawa

Debt Settlement Programs Canada

What is Debt Consolidation

Taking out a new debt relief program to pay off your existing debts is known as debt consolidation. In essence, you’re combining all of your loan payments into one. If you have several high-interest loans or credit cards, this can be an excellent alternative because you might be able to receive a debt consolidation loan with a lower interest rate.

In Canada, there are primarily two kinds of debt consolidation loans: secured and unsecured. Unlike unsecured loans, secured loans need collateral like a house or car

A lump sum of money that you can use to pay down your current debts is often given to you when you take out a debt consolidation loan, especially for secured loans. After that, you will make one payment each month on your new loan, 


 ➧ Benefits of Debt Consolidation

Consolidating debt has a number of advantages, including:


  • Simplified payments:

If you consolidate your debt, you’ll just have one monthly payment to make, which may be simpler to handle than making several payments to several creditors.

  • Fixed or low-interest rates:

For secured debt consolidation loans, If you have high-interest credit cards or loans, you might be able to acquire a debt consolidation loan at a better interest rate because it will be fixed and will not vary from one debt to another, which can help you save money over time. For unsecured Debt Relief Program Services in Canada, you can avail of lower interest rates as well. 

  • Increased credit score:

Making timely payments on your debt consolidation loan might increase your credit score over time.

  • No risk of collateral loss:

If you choose an unsecured debt consolidation loan, you won’t need to be concerned about losing your house or car if you can’t make your payments.


What is Debt Settlement?

Debt settlement, commonly referred to as debt negotiation or debt relief, is the process of negotiating with your creditors to settle your obligations for less than you are owed. In essence, you’re asking your creditors to accept a single payment that is less than the full amount of your debt in exchange for forgiving the remaining balance.

Working with a debt settlement company or lawyer who will speak with your creditors on your behalf is normal for debt settlement. You’ll normally pay the debt settlement business on a monthly basis, and they’ll keep your money in an account until you have enough to reach a settlement.

Once a settlement has been achieved, you’ll pay your creditor a one-time sum and your debt will be regarded as fully settled. The fact that creditors could mark resolved debts on your credit record as “settled for less than the full amount” might have a detrimental effect on your credit score.


 ➧ Benefits of Debt Settlement

The following are a few advantages of debt settlement:


  • Debt reduction:

By negotiating with your creditors to take a lump sum payment that is less than the total of your debt, debt settlement can help you lower the total amount of debt you owe.

  • Lower payments:

Because you’ll be making one large payment to pay off all of your obligations, you may be able to work out a deal with your creditors for lower monthly payments.

  • Resolution in a hurry:

Debt settlement may be a quicker choice than other debt relief strategies because you might be able to pay off your debts in as little as 2-4 years.

  • No collateral required:

Because debt settlement does not demand collateral, you will not lose your home or automobile if you default on the loan.



Which is Right for You: Debt Settlement or Debt Consolidation?

You may be unsure of which debt relief option is best for you now that you know more about debt consolidation and debt settlement. Depending on your unique financial situation and goals, the answer will vary.

Debt consolidation might be a suitable choice for you if you have a lot of high-interest debt and find it difficult to meet your monthly payments. You might be able to save money over time and reduce your monthly payments by combining your loans into one payment with a reduced interest rate.

On the other hand, debt settlement might be a better choice if you’re having trouble making your monthly payments and don’t have the income to sustain a debt consolidation program. Even if you don’t have the means to afford a traditional debt consolidation loan, debt settlement can help you lower the overall amount of debt you owe and make your monthly payments easier to manage.

However, it’s crucial to keep in mind that both will lower your credit score. 

Ultimately, talking to a financial counselor or debt relief specialist is the best way to figure out which choice is ideal for you. They can assist you in evaluating your financial status and choosing the best Debt Relief Program Service in Canada.


“So take action now and ask National Debt Relief for assistance if you want to get out of debt and reclaim your financial freedom!”


Debt Relief Program Service in Canada,

Our Clients 5-Star Reviews

Jennifer Chenier
Jennifer Chenier
Read More
I was lost ... single mom... off due to Covid for 3 months .. did what it took to pay bills and look after my kids... and left with nothing but a tonne of debt I could not keep up with 😢. And then ....I met Connie.. Connie gave me my life back. The entire experience was like talking to my mother. She was full of compassion and knowledge and took me under her wing for this entire process. She turned tears into smiles and hope . She reassured me.. and made me feel like it was Going to be ok. I can’t thank her and the team (Paul) enough for helping me through this . I highly recommend National Debt Services to anyone looking for help with their debt . Start living again ❤️. Thanks Connie Jen
Katherina Preston
Katherina Preston
Read More
"So glad I finally had the courage to make the call" Suma was amazing.. she guided me through my options and got the answers to all my questions. By the end of our very first phone conversation I had hope again...finally...no more sleepless nights worrying my debt ....Thank you National Debt Relief Services
Chris V
Chris V
Read More
I would just like to thank Suma for really making feel comfortable throughout this entire process. Everyone tells you to watch out for gimmicks, quick fixes, and everything else that comes with Debt. Ive had other companies who had made promises and under delivered. However Suma and her team are quick to provide the right answers and guide everyone in a way towards better credit. She has made it seamless with great communication and availability. I have personally referred her to several of my closest friends and i would recommend her to anyone else looking for consolidation.

Top 5 Key Benefits of our Ontario Debt Relief Program:

To know more what you can benefit from our Ontario Debt Relief Program, simply try our Debt Consolidation Calculator below and one of our debt specialists will get in touch with you and provide you the best debt relief option that fits your situation.

Do you want to experience Peace of Mind from all of these?

  • Credit Card Debts
  • Personal Loans
  • Car Loans
  • Taxes
  • HST
  • 407
  • Household Bills
  • Payday Loans
  • Student Loan
  • and more…

Talk to us! We will help you get out of debt.

We will help you reduce as much as 75% of your debts and consolidate it into a single affordable monthly payment. Your creditors will stop harassing you and all interest will freeze if you get into our Ontario Government Debt Relief Program.

Many Ontarians are already benefiting from our Debt Relief Program, YOU should too!

Find out how much you can write off portion of your debts by getting your Free Savings Estimate below. A debt specialist from National Debt Relief Services in Ontario will discuss all options and provide you tailor-fitted Debt Relief Program.

We will help you compare
the options and savings of all formal debt relief programs available to you.


No contact details required to find out if you qualify

Frequently Asked Questions

A Debt Consolidation is a negotiated debt settlement offer made between you and your creditors with the help of a Debt Relief Agency in Ontario. Some key benefits of Debt Consolidation are interest-free program, no upfront fee required, combined monthly payment into one affordable amount, no lawsuits, and many more.

Yes, your assets are safe from creditors. A licensed debt relief agency in Ontario will help you come up with an offer to your creditors that will make sure your assets will be out of the paper.

No, in fact, this is one of the great advantages of a Debt Consolidation Program. All wage garnishment will stop from the day you filed the proposal.

The effect on your credit score is not going to be severe. Your credit score will most probably go to R7 Rating and will remain in your credit report for another 3 years after you completed the program. This means that it will not be permanent and you will still be able to rebuild your credit score.


This varies depending on the proposal you will be discussing with the help of a certified debt relief agency. It is also worth noting that debt consolidation cannot exceed more than 5 years.

If a debt is shared, you need to file a joint debt consolidation offer to your creditors. However, in most cases, in which the debts are individually incurred will have no impact on your spouse.

After three missed payments, your debt arrangement with creditors will be broken and you will end up getting chased again for the original debt amount plus interest.

A debt consolidation offer can be paid off earlier if you can. In this way, you receive your “Certificate of Completion” sooner and you can immediately start rebuilding your credit score. 

National Debt Relief Services Ontariois a certified Canadian Debt Relief Agency that offers FREE CONSULTATION to your debt consolidation needs. We value the trust given to us by our clients by making sure your personal information is confidential and private. Our personalized plans are designed to tailor fit your financial capacity. Our specialists will get in touch with you by simply answering a few questions thru the link provided below.

Why Trust National Debt Relief Services?

Debt relief program's accreditation logos
Council for Economic Education

Proud to support financial literacy education

See What Our Customers Have To Say

Dawn Friesman
Dawn Friesman
I've been working with Allicia Macdonald shes very professional and sweet. I cant thank her enough for helping me rebuild my life. Thank you so much.
Chantal Rolfe
Chantal Rolfe
Today I had a wonderful experience with Rachael, she was Very professional I was very happy with what we talked about today she was very Caring I highly recommend national debt relief services hundred percent😃
Jennifer Magill
Jennifer Magill
Brittany was awesome, she explained everything clearly and offered solutions every step of the way. It’s always nice to hear that you could do this or that, I didn’t feel forced to do anything and was able to decide clearly. Thank you 🙏🏼
Dave Tonnos
Dave Tonnos
This company will work with you and through any difficulties that may arise. They actually hold themselves accountable, how refreshing during troubling economic times.
marian kamara
marian kamara
I have a great experience working with Suma, she work me through the program, takes her time to explain everything to me about how the program work, what I need to do from start to end of the process. I’m so thankful to God for sending an angel Suma to help relief my debt. It’s a great company to work with. I will recommend this program for anyone in debt like me.
Donna Hutchings
Donna Hutchings
Connie B. was absolutely awesome! She explained everything in detail to me. Very professional to work with and takes the time with you. She really has compassion. So glad she helped me out. Thank you
lynn collins
lynn collins
Joel has made this so simple and effortless he made sure i was well informed and making the right decisions for my situation i would recommend joel at national dept Relief to anyone in hardship with there bills thanks alot joel i really appreciate everything you have done for me thanks!! 5 stars for sure! and its chad ball not my mom lynn lol
Billy Bong
Billy Bong
I had a great experience with Brittany, so helpful and understanding. Never felt like I was being pressured or rushed into anything. She was always there with answers to my questions. Thanks for all the help and peace of mind you helped me achieve.
Amber-lyn Miller
Amber-lyn Miller
Let’s Just Put It Simple....... Not All Hero's Wear Caps........I spoke with Suma over a fairly lengthy period of time because of my busy schedule and lack of free time on my part, and she was not only extremely patient and understanding, but also beyond helpful And informative. Any question I had and no matter how many times she had to explain it to me she took her time to make sure I completely understood every single step and process before she moved on to the next thing. I have been so stressed out and worked up about my debt and trying to figure out how to fix it all since I know I will not be returning to work at all in the future because of medical issues and being 26 with that realization makes things just that more stressful but Suma made everything so easy and my payments are $100 a month for less then 5 years with no interest or penalties for early pay off. I’m so glad that I didn’t settle with some other place that was asking for $350 + a month for 7-12 years and paying off early would cost you more.
Jessica Preston
Jessica Preston
Caroline F. was phenomenal, she was so helpful, understanding and compassionate. Caroline did not make me feel bad for my mistakes, she was supportive and caring, she helped me through this dark time in my life I'm so incredibly happy I crossed paths with her. Thank you Caroline for being so wonderful to me! <3

We Help Over 200+ Ontario Clients Per Day

We're here to help you consolidate your debt.

Get a free savings estimate today. There is no obligation.