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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.

Compare Your Repayment Options

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

Credit cards, personal loans, tax debt, payday loans.
Standard Canadian credit card APRs range 19.9%–29.9%.
Maximum term for federal consumer proposals.
High Interest Risk

1. Repay on Your Own

Estimated Monthly Payment
$912/mo
Total Out-of-Pocket Cost
$54,720
  • 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).
Bank Loan

2. Consolidation Loan

Estimated Monthly Payment
$778/mo
Total Out-of-Pocket Cost
$46,680
  • 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.
Non-Profit Plan

3. Credit Counselling

Estimated Monthly Payment
$642/mo
Total Out-of-Pocket Cost
$38,500
  • 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.
Maximum Relief

4. Consumer Proposal

Estimated Monthly Payment
$204/mo
Total Out-of-Pocket Cost
$12,250
  • 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.

Legally Cut Your Debt By 80% And Stop Interest Charges

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I WANT TO BE DEBT FREE

I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.

Geoffrey,

Toronto