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
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.
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
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.
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.
- Credit cards
- Personal loans
- Lines of credit
- Unsecured loans
- Utility and cell phone bills for discontinued services
- Student loans
- Payday loans
- Income tax and Overpayment of social services
- 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
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.
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.
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.
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.
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.
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.
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.
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.
If you suffer from any of the following debt symptoms, call us immediately. We can help!
Trouble making ends meet
Irritating collection calls