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 But here in Canada, there is an option that might just give you the breathing room you need: a consumer proposal. Think of it as a way to take control without the drastic step of declaring bankruptcy.

A consumer proposal is a formal, legally binding agreement between you and your creditors that allows you to pay back part of your debts over time. It is a debt relief option that is designed to give you some relief without going to the extremes.

To qualify,  the criteria are pretty straightforward. Here is what you need to meet the requirements and start taking control of your debt: your unsecured debts need to fall between $1,000 and $250,000. 

A consumer proposal deals with unsecured debts, which include credit card debt, personal loans, payday loans, tax debt, and medical bills. 

Your mortgage or car loan? They are secured debts and are not part of the deal.

To qualify for a consumer proposal, you have to prove that you are insolvent, meaning you cannot manage to pay off your debts with your current income—you either cannot keep up with payments or what you owe is way more than what you own. You have got to show that paying off everything is not realistic at this point. You must have income to qualify.