Debt Settlement New Brunswick

How to Settle Debts in New Brunswick

In recent years, Debt Settlement in New Brunswick has emerged as a viable solution for many individuals grappling with overwhelming debt. This article aims to offer a comprehensive understanding of the debt settlement process and the relevant regulations in New Brunswick.

Understanding Debt Settlement

Debt settlement is a process where a company negotiates with your creditors attempting to reduce your overall debt. This process typically involves making monthly payments to a debt settlement company to build up a lump sum payment. Once the company has accumulated enough funds, it approaches your creditors, trying to settle each debt for less than what you owe.

However, this process is not without its drawbacks. Your credit profile may be negatively affected as your credit report may show several months of non-payment due to payments being directed to the debt settlement company instead of your creditors.


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Things to Consider before Opting for Debt Settlement

  • Alternative Debt Repayment Methods: Before signing a contract with a debt settlement agency, consider other ways to pay off your debts, such as negotiating a repayment plan with your creditors on your own.
  • Impact on Credit Rating: Renegotiating your debts may lower your credit rating or credit score.
  • Rising Interest Rates: Your interest rates may increase during the time your debt remains unpaid, potentially increasing the amount you owe to your creditors.
  • Uncertain Creditor Response: Your creditors may not agree to any settlement.

Know Your Rights

In New Brunswick, the law stipulates that you cannot be charged any fees by the debt settlement agency unless your creditors accept the offer of a settlement of your debt. You have the right to cancel a contract within 10 days after receiving a written copy of it without needing a reason to cancel. To cancel, you must notify the company in writing and keep a copy of the written cancellation notice as proof of the date you gave your notice.

Regulation of Debt Settlement in New Brunswick

Debt settlement services in New Brunswick fall under the purview of the Collection and Debt Settlement Services Act. This Act regulates the collection practices of agencies and collectors, as well as debt settlement services.

Licensing Requirements

Both collection agencies and their collectors are required to be licensed under this legislation. The Act also requires agencies to submit a bond of surety in the amount of $10,000.

Collector’s Licence

Each individual employed, appointed, or authorized by a collection agency to solicit business or collect debts for the agency must hold a valid collector’s licence. Applicants must submit an application with a non-refundable application fee and meet the requirements under the Collection and Debt Settlement Services Act and regulations.

Agency Licence

Debt settlement agencies offering to negotiate with creditors on behalf of consumers are required to obtain a licence, follow disclosure and contract requirements, and adhere to prohibited practices under the Act.

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The State of Debt in New Brunswick

Despite having one of the lowest debt service ratios in the country at 4.24%, the average debt load of New Brunswickers was $91,083 in Q2 of 2022, an increase of 12.2% in just two years. Therefore, despite some encouraging signs, there is still reason for concern when it comes to personal debt in New Brunswick.

The Role of Debt Settlement Programs in New Brunswick

New Brunswick Debt Settlement Programs have helped many individuals regain control over their financial situation. When your consumer debt balances are exceptionally high, it can seem impossible to pay off your creditors. However, a debt settlement program can lower the amount you owe your creditors, providing a more manageable path to becoming debt-free.

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Negotiating with Creditors

Negotiating with creditors for a debt settlement is not an easy process, and many individuals have not received the best settlement agreement when they attempt to work with creditors on their own.

Therefore, professional debt relief help in New Brunswick can be invaluable. A debt relief expert can negotiate the best deal on your behalf, helping you to minimize the amount you owe and put you back on the path toward financial stability.


Debt Settlement in New Brunswick can be a viable option for those struggling with high levels of debt. However, it’s essential to consider the potential impact on your credit rating and the potential for increased interest rates. Remember, knowledge is power, and understanding your rights and the regulations governing debt settlement can help you make an informed decision. If you’re considering this path, it may be beneficial to seek professional advice to ensure you get the best possible outcome.

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All the staff were incredibly kind, they addressed all my inquiries and made the procedure easy for me to comprehend. I had someone guiding me at every step of the way.


Bathurst, NB