Debt Repayment Calculator - Bankruptcy Options Calculator
Canadian Debt Repayment & Relief Calculator
Compare your estimated monthly payments and total costs across 4 primary Canadian debt relief strategies—instantly and confidentially.
Unsecured debt like credit cards and lines of credit can take decades to pay off if you only make minimum payments. Input your total unsecured debt below to see how much a Consumer Proposal or Debt Consolidation could save you.
Debt Repayment Comparison Engine
1. Repay on Your Own
- Interest Rate: 19.99% APR compounding continuously.
- Total Interest Paid: +$19,720 in pure interest fees.
- Credit Impact: Depends on payment history (R1 if kept current).
2. Consolidation Loan
- Interest Rate: ~12.0% APR (Requires good credit score).
- 100% Principal Repaid: Full debt repaid plus reduced bank interest.
- Credit Impact: Maintains current rating; lowers credit utilization.
3. Credit Counselling
- Interest Rate: Reduced to 0%–5% + ~10% agency fee.
- 100% Principal Repaid: Must pay back all $35,000 principal.
- Credit Impact: R7 rating on credit report for 2 years post-completion.
4. Consumer Proposal
- Principal Written Off: Cut debt balance by up to 65%.
- 0% Federal Interest: All future compounding interest frozen legally.
- Total Estimated Savings: Save $42,470 vs DIY repayment.
Detailed Breakdown of Your Canadian Debt Relief Options
Choosing the right debt repayment strategy depends on your budget, whether you have equity in assets to protect, and your long-term financial goals.
| Option | Debt Reduction | Interest Rate | Stops CRA Garnishments? | Legal Protection |
|---|---|---|---|---|
| Repay on Your Own | 0% (Pay 100%) | Full APR (19.9%–29.9%) | No | None |
| Debt Consolidation | 0% (Pay 100%) | Reduced Bank Rate (8%–14%) | No | None |
| Credit Counselling (DMP) | 0% (Pay 100%) | 0% to 5% + Admin Fees | No | Voluntary (Non-binding) |
| Consumer Proposal | Up to 70% Written Off | 0% Fixed Interest | Yes (Immediate Stay) | Federal BIA Protection |
Why Consumer Proposals Offer the Lowest Monthly Payment
A Consumer Proposal is a federal legal procedure under the Bankruptcy and Insolvency Act (BIA). Unlike bank loans or credit counselling, a Licensed Insolvency Trustee negotiates to write off the majority of your unsecured debt principal.
- 0% Interest Guaranteed: Once accepted by your creditors, no further interest can ever be added to your balance.
- Fixed Monthly Cost: Your monthly payment stays the exact same for up to 5 years—even if your income increases or you get a raise.
- Full Asset Protection: Unlike bankruptcy, you keep 100% of your home equity, car, RRSPs, and personal property.
Frequently Asked Questions
This calculator provides realistic estimates based on standard Canadian credit card interest formulas, typical bank consolidation loan APRs, and historical Consumer Proposal acceptance benchmarks (where debtors typically pay back 30%–35% of their principal). Your exact payment will be determined during a consultation with a Licensed Insolvency Trustee.
You can include credit cards, bank overdrafts, personal lines of credit, payday loans, CRA income tax debt, GST/HST arrears, CERB repayments, and government student loans (if you have been out of school for at least 7 years). Secured debts like mortgages and car leases are excluded.
No. This calculator is an educational tool. It does not perform a credit check, require your contact details, or save any personal information.
Find Your Personal Debt Relief Solution
Licensed Insolvency Trustees are here to help. Get a free assessment of your options.