What are the Fees for a Debt Management Program?

Understanding the Cost of Debt Management Programs

Deciding to take control of your financial situation is the first significant step towards achieving financial freedom. One solution that individuals in debt often consider is enrolling in a debt management program. A common question that arises is: “What are the Fees for a Debt Management Program?” This article aims to provide a comprehensive answer to that question.

What is a Debt Management Program?

A debt management program (DMP) is a service provided by credit counselling agencies to help individuals manage their debts. These programs offer a systematic approach to paying off your debts by combining them into one manageable monthly payment. However, like most services, there are associated costs.

The Cost of a Debt Management Program

When considering a DMP, it’s crucial to understand that the fees are not a means for the agency to profit from your situation. Instead, they are designed to cover the cost of the services provided. According to Canadian law, no debt relief company can charge upfront fees before providing any services. Therefore, the initial consultation to review your debt and determine the best solution is usually free of charge.

The fees for a DMP come into play once you formally enroll in the program. The costs are dependent on various factors:


  • The total amount you owe;
  • The number of credit cards you have;
  • Your income and budget;
  • Your place of residence.


Provincial laws can also influence the calculation of these fees. It’s important to note that the agency you choose does not determine the fees. Instead, they are set by external factors. Therefore, you don’t need to “shop around” for an agency based on getting the best deal. It’s more about finding a reputable agency that you feel comfortable negotiating on your behalf.

How are the Fees Calculated?

The total cost of a DMP includes the monthly payment you make to eliminate your debts and the fees applied by the agency. Typically, the total amount you pay is 30-50 percent lower than the amount you would have been paying before joining a DMP, even after including the fees.

Additional Debt Relief Options

When discussing your financial situation with a credit counsellor, they may suggest various debt relief options for which you may qualify. These could be alternatives to a DMP based on your financial status. A step as simple as ordering a free credit report can help you understand the high-interest rates you agreed to when you signed up for a credit card. If you have unsecured debts or student loans, a credit counselling agency may be able to help you get out of debt faster.

The Role of a Credit Counsellor

Credit counsellors are financial experts who provide advice and guidance to individuals struggling with debt. Their primary role is to help you understand the various options available to you and assist you in making informed decisions about managing your debt.


Understanding the fees for a debt management program is crucial when considering this debt relief option. Although there are costs involved, remember that these programs are designed to help you achieve financial freedom

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.