http://www.moneymentors.ca/

How does you debt stack up?

When it comes to debt and money management, people often have a lot of questions. Here are a some of the most common questions we hear:

Frequently Asked Questions

Why Money Mentors?

Money Mentors is the only Alberta-based not-for-profit credit counselling agency.  We offer FREE credit counselling, financial assessment services and money coaching (Fee attached).  We are also the only exlusive provider of the Orderly Payment of Debts program on behalf of the government of Alberta.

We provide:

  • Unbiased advice and information

  • A guaranteed 5% interest rate

  • Legal protection from creditors

  • Collection calls are eliminated

  • All unsecured debts are covered, including Income Tax and Student Loans

  • A government approved program

  • A choice of in-person, telephone or Skype counselling appointments

  • Fee rebate

If you are not-for-profit, how are you funded?

The Alberta Government privatized the Orderly Payment of Debts (OPD) Program in 1997 by funding Money Mentors to administer the program.  The majority of our funding comes from a mandatory fee charged to the creditors.  Therefore, there is no charge to clients if they successfully complete the OPD program, take three education sessions and a final appointment with their counsellor.

What is the Orderly Payment of Debts program?

The Orderly Payment of Debts program allows Alberta residents to consolidate all unsecured debts into one affordable payment with a fixed interest rate of 5% regardless of credit rating.  The OPD program is available to all residents of Alberta with a current Alberta address at the time of application.

What Debts are under the Orderly Payment of Debts program?
  • Credit cards
  • Personal loans
  • Overdrafts
  • Lines of credit
  • Unsecured loans
  • Utility and cell phone bills for discontinued services
  • Student loans
  • Payday loans
  • Income tax and Overpayment of social services
What Debts are not under the Orderly Payment of Debts program?
  • Arrears for existing services (including utilities and rent)
  • Corporate taxes and/or GST for a current business
  • Court-ordered payments such as spousal or child support
  • Secured loans such as car loans/leases or mortgages
  • Debts incurred as a result of fraud
What is the difference between the Orderly Payment of Debts Program and Bankruptcy?

The OPD Program helps you pay your creditors 100%, you get to keep your assets and it remains on your credit report for 2 years after completing the program. Bankruptcy stays on your report for 6 years after discharge.

Do the collection calls stop?

Once protected by the Orderly Payment of Debts program, all collection calls should stop.  In the event of continued calls, all creditors or collection agencies can be referred directly to Money Mentors.  Additionally, once protected by the OPD program, a creditor cannot take legal action in pursuit of outstanding debts.

How does the Orderly Payment of Debts Program affect my credit?

Debts protected under the OPD program are typically reflected on a client's credit report as R7, because the account is being paid under the protection of a consolidation order.  The R7 is typically removed 2 years following the successful completion of the OPD program.  During the repayment period, the creditor may report a debt as R9 at the creditors' discretion even though the client is participating in the OPD program.

If I pay my debts in full through the OPD Program, will my credit rating be affected?

Yes, because you are not paying your account as originally agreed.  The OPD program will report on your credit for 2 years after completion.  However, with a good history of payments in the program, you can get a reference letter to take to new lenders.  We also offer free financial seminars on how to rebuild your credit.

When do you disburse funds?

Once protected by the Orderly Payment of Debts program, a client will make regular monthly payments directly to Money Mentors, which is then disbursed to the client's creditors on a pro-rated basis.  This payment disbursement continues until all creditors are paid in full.

How long does information stay on my credit report?

The length of time information stays on your credit report depends on the type of entry it is.  Here’s a guideline:

  • Inquiries from creditors stay on your credit report for at least 3 years. Getting a copy of your own credit report will not show up to future creditors.

  • Debts that go into collections will stay on your credit report for 6 years from the day of the last payment.

How do I get a copy of my credit report?

It’s a really good idea to keep up to date on your credit report.  Contact Equifax (website) at 1-800-465-7166 or TransUnion (website) at 1-800-663-9980.

I'm not in debt and just want to learn how to budget and save for retirement. How do I access your services?

We offer FREE credit counselling and financial assessments to determine your needs, however, if you have minimal or no debt, you can book a session with one of our Money Coaches to talk about moving forward financially. There is a fee for this service.

If I filed for bankruptcy, do I qualify for the Orderly Payments of Debts Program?

Applicants who are currently protected by Canada's Bankruptcy Act are not additionally eligible for the OPD program, but are eligible for free Money Mentors credit counselling and financial assessment by appointment.  Also, if a person has been discharged from bankruptcy, he/she could go on OPD if the need arose.

How do I know when I am really over my head in debt?

If you suffer from any of the following debt symptoms, call us immediately. We can help!

  • Trouble making ends meet

  • Irritating collection calls

  • Increased stress

  • Difficulty sleeping

  • Strained relationships