Debt Settlement: Benefits
Understand the real benefits of debt settlement in Canada before choosing the right path forward.
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What are the Advantages of Debt Settlement?
Debt settlement can offer a path toward managing overwhelming debt without declaring bankruptcy.
It works by negotiating with your creditors to reduce what you owe — often by a significant amount — and agreeing on a manageable repayment plan. Whether through a debt settlement company in Ontario like Spergel or a consumer proposal filed by a Licensed Insolvency Trustee, this approach can provide a lifeline if you’re struggling with high-interest credit cards, payday loans, or other unsecured debts. In fact, many Canadians choose debt settlement because it can lead to lower monthly payments, fewer collection calls, and a fresh financial start without losing essential assets.
Find Out How Much You Can Save - With a Consumer Proposal!
Learn how a consumer proposal compares to debt settlement when it comes to eliminating debt by using our helpful debt calculator.
Let’s Compare Your Options
If you’re not sure which solution is best for your situation, we’re here to help you understand the pros and cons of each option.
While other debt settlement companies in Ontario offer informal programs, they often come with upfront fees, uncertain outcomes, and limited legal protection. In contrast, a consumer proposal is backed by federal law and administered by a Licensed Insolvency Trustee — giving you peace of mind and creditor protection.
advantages
All the Advantages of Debt Settlement
Here’s why many people in Ontario choose debt settlement:
Reduce your overall debt amount
Creditors may agree to settle for less than the full balance owed, helping you eliminate debt faster.
Consolidate into one simple monthly payment
Streamlines multiple bills into one manageable payment, making it easier to stay on track.
Lower or eliminate interest charges
Debt settlement focuses on principal amounts, often bypassing growing interest costs entirely.
Stop collection calls and legal action
Entering a settlement program can pause or prevent aggressive collection efforts and lawsuits.
Avoid bankruptcy while getting relief
Provides a less severe alternative to bankruptcy, with fewer long-term consequences.
Start rebuilding your credit sooner
Once debts are settled, you can begin repairing your credit history and improve your score over time.
Take control of your financial future
With a clear repayment plan, you can reduce uncertainty and make confident financial decisions again.
At Spergel, our Licensed Insolvency Trustees walk with you every step of the way — not just to reduce your debt, but to help you feel supported throughout your journey to financial freedom.
Overview
What to Consider When Filing for Debt Settlement
Before starting a debt settlement program, it’s important to understand both the benefits and the risks.
Creditors don’t have to accept your offer, and you could still face interest charges or legal action. That’s why it’s crucial to know your rights under the Ontario Collection and Debt Settlement Services Act, and why a consumer proposal may offer more stability and legal protection.
Ask yourself:
- Can I commit to regular monthly payments?
- Am I prepared for potential impacts to my credit?
- Would a legally binding option like a consumer proposal be safer and more effective for me?
Understanding your options can give you the clarity and confidence to make the best decision for your future.
next step
How Do I Get Started?
The first step toward debt relief is speaking with a Licensed Insolvency Trustee — the only professionals legally authorized to file all forms of debt relief in Canada.
At Spergel, our experienced trustees offer personalized, non-judgmental support. We’ll meet with you (as often as you need), review your financial situation, and clearly explain every option available — including whether a debt settlement or another solution is best. There’s no pressure, just expert guidance. We’re proud to offer:
- Free, confidential consultations
- Clear, customized debt relief plans
- A 99% acceptance rate on the consumer proposals we file
- Help from the same trustee — start to finish
Everyone’s Situation is Different. Let’s Talk About You.
Book a free call with Spergel today, and we will make a plan with you on how to help.
Real Canadians. Real Success — Like Jordan
“After years of struggling with escalating tax debt and the overwhelming stress it brought into my life, finding Spergel was a turning point for me. Their team approached my situation with an incredible mix of professionalism, empathy, and expertise, taking the time to understand the nuances of my financial dilemma. They negotiated directly with the CRA, securing a payment plan that was both manageable and fair, and even managed to reduce my overall debt. What truly stood out was how they empowered me with the knowledge and tools to take control of my finances moving forward. Thanks to Spergel, I can focus on my career and being a father without the constant worry of tax debt looming over me.”
– Jordan, Ontario
Jordan's Story is just one of many
It shows that once you face your debt and get the right help, life can get better – quickly. Discover more Success Stories of Canadians we’ve helped, or reach out to us.
How We’ve Helped Others
Every debt story is different — and so is every solution. Here’s what real clients had to say about working with Spergel.
Let’s Find the Right Solution for You
Every financial story is different. Let’s talk about yours and explore the solution that fits you best.
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