CREDIT CARD DEBT REDUCTION | DEBT MANAGEMENT PROGRAMS IN CANADA 

Credit card debt "forgiveness" in Canada, including Quebec, typically happens through formal processes like a consumer proposal, where you negotiate to pay a portion of unsecured debts (like credit cards) over up to 5 years, and the rest is forgiven if creditors agree. Major banks such as RBC, TD, Scotiabank, BMO, CIBC, and Desjardins (Quebec's biggest) don't outright forgive debt on their own but often accept these proposals, over 94% get approved in some cases. Banks may also offer temporary help like payment deferrals, lower interest, or repayment plans if you're struggling, especially if payments are current.

 

How It Works for Quebec Residents

​

• Contact the bank first: Call Desjardins at 1-800-224-7737 or your national bank's hardship line (e.g., RBC or CIBC) to discuss plans, they might reduce rates or defer payments without formal forgiveness.

• Consumer proposal via Licensed Insolvency Trustee: Ideal for high credit card debt; consolidates payments, stops interest, and forgives the balance after partial repayment. Quebec trustees like Jean Fortin handle this with banks, often saving 50%+ including interest.

• Debt management programs: Non-profits negotiate lower/no interest with banks, but no forgiveness, just faster payoff.​

 

No Quebec-specific grants or bank forgiveness programs are available just now. It's all about negotiation or legal proposals.​

​​

​

​

Debt management programs (DMPs), for Quebec clients, are non-profit credit counselling services that negotiate with major banks like Desjardins, RBC, and others to consolidate and ease credit card debt without formal forgiveness. They're perfect for building financial clarity.

 

What Is a DMP?

​

A Debt Management Program consolidates multiple unsecured debts (like credit cards) into one affordable monthly payment via a non-profit agency. The agency negotiates with creditors to slash interest rates, often to 0% on credit cards, or even waive fees, thus, helping pay off debt in 2-5 years (average under 3). Counselling starts free and confidential; you only pay if enrolling (low fees, around $20-50/month).

 

Top Providers in Quebec 

 

Montreal has strong local access:

• Credit Counselling Society (nomoredebts.org) Telephone :1-888-527-8999  Free bilingual counselling; DMP stops collection calls; serves Montreal / Alma. 

• Credit Canada 1-800-267-2272 with over 50+ years experience; consolidates payments, rebuilds credit. ​

• Consolidated Credit Canada consolidatedcreditcanada.ca Non-profit negotiation for interest relief; Quebec-focused. ​

 

These work with Quebec banks, protecting assets unlike proposals.

 

Pros and Cons

• Pros: No new loans needed; rebuilds credit faster than proposals; stops harassment.

• Cons: Closes credit cards temporarily; must stick to budget; not ideal for maxed-out debt over $50K (consider consumer proposal then).​