People with debt problems are targeted by offers that sound like relief but make things worse. Know the warning signs before you sign anything.

Red flags

  • Large fees before anything is approved
  • Promises to “erase” debt or remove accurate items from your credit report
  • Pressure to sign today
  • Being told to stop paying creditors without a clear legal arrangement in place
  • Discouraging you from getting your own lawyer
  • Any request to transfer ownership of your home
  • Fees or terms that change at the last minute
  • Unlicensed people arranging a mortgage. In Alberta, mortgage brokers are licensed by the Real Estate Council of Alberta (RECA).

Protect yourself

  1. Get every cost in writing, including the total over the term. See the costs.
  2. Check licences on RECA’s website.
  3. Use your own lawyer.
  4. Compare at least one alternative. See consolidation vs counselling vs a proposal.
  5. Take a day to think.

Where to get trustworthy help

  • Non-profit credit counselling agencies
  • Licensed Insolvency Trustees, for insolvency options
  • Licensed mortgage brokers, for mortgage options
  • Service Alberta, for consumer protection questions

For quick answers to common questions, see the debt consolidation mortgage FAQ.

This article is general information, not financial or legal advice. Lender requirements, rates and fees change and depend on your situation.