Frequently Asked Questions

1.  What is the difference between Unsecured and Secured debt?

A secured debt is a debt secured by colateral or an asset (something of value).  An unsecured debt has no collateral securing it.  Securing debt gives the creditor the right to take your collateral or asset if you do not pay back the loan.

2.  What kind of debts do you include on the Orderly Payment of Debts (OPD) Program?

All unsecured debts are included in the OPD Program including credit cards, medical bills, disconnected utility bills, taxes, and Student Loans.  Secured debts can be included with the agreement of the creditor.

3.  How do I get a copy of my credit report?

It is a really good idea to keep up to date on what's on your credit report.  Contact Equifax (website) at 1-800-465-7166 or Trans Union (website) at 1-800-801-3619.

4.  How long does information stay on my credit report?

The length of time informations stays on your credit report depends on the type of entry it is.  A guideline is as follows:

• Inquiries stay on Equifax for 3 years.  The exception is:  5 inquiries or less do not purge regardless of date.  Trans Union keeps inquiries for 6 years.
• "Own" inquiries do stay on file however they are masked to any creditors making inquiries and are only displayed to individuals requesting their own file and Equifax.  Equifax posts a masked inquiry every time an individual gets a copy of their own file, however these inquiries are not displayed to any credit granters accessing the file.
• Mortgage and car loan inquiries follow the same purge rules as other inquiries which is 3 years; however mortgage and car loan inquiries are treated differently when a credit score is being calculated and the two week time frame has been revised from two weeks to 45 days.  All inquiries must post and follow the same purge rules.
• Collections are purged by Equifax 6 years from the date of last payment and if there is no DLP, they purge 4 years from the date assigned.  Trans Union purges collections 6 years from the date of first delinquency.
• Credit and Banking Information - 6 years from date of last activity

5.  What is the difference between Bankruptcy and the Orderly Payment of Debts Program?

The OPD Program helps you pay your creditors 100% without losing any of your assets.  Bankruptcy relieves you of your debt repayment less any non-exempt assets you own or surplus income you may have.  The other difference is how long your credit rating will be affected.  OPD stays on your credit report for 2 years after completion of the program whereas bankruptcy is reported for 6 years after discharge.

6.  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.  However, with a good history of payments in the program, you can get a reference letter to take to new lenders and we offer education on how to rebuild your credit.

7.  If I still need help after I'm done the program, does Money Mentors have other ways of helping me financially?

We are always here to help!  Once you have become debt-free, our Money Coaches can help you move financially forward with coaching on savings, mortgages, the basics of investing and retirement planning.

8.  Why  should I choose Money Mentors for credit counselling?

We provide:

• Unbiased advice
• A guaranteed 5% interest rate
• Collection calls are eliminated
• All unsecured debts are covered, including Income Tax and Student Loans
• A government approved program
• A choice of in-person or phone counselling 

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

We have free consultations to determine your needs, however, if you have no or minimal debt, you can book a session immediately with one of our Money Coaches to talk about moving financially forward.  There is a fee for this service.

10.  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

11.  If you're not a government agency, how are you funded?

The Alberta Government privatized the Orderly Payment of Debts Program in 1997 by funding Money Mentors, formely Credit Counselling Services of Alberta, to administer the program.  Within five years Money Mentors was self-sufficient.  While we have some fees for services, the OPD program remains the cornerstone of our business so the majority of our funding comes from a mandatory fee charged to the creditors.

12.  If Money Mentors is a not-for-profit, why are there fees?

Not-for-profit organizations can take many forms.  For example, major universities and colleges are not-for-profit organizations who charge all sorts of fees, such as tuition.

By definition, a not-for-profit organization is not owned, it is run by a board of directors and all surplus earnings (profits) must be re-invested into the organization.  That means all money made by Money Mentors goes back into the organization to improve our services.