Canada Debt Settlement Market

Canada Debt Settlement Market Insights Forecasts to 2035

• The Market Size is Expected to Grow at a CAGR of around 5.10% from 2025 to 2035
• The Canada Debt Settlement Market Size is expected to hold a substantial share by 2035

According to a research report published by decision advisior & Consulting, the Canada Debt Settlement Market is expected to grow at a CAGR of 5.10% during the forecast period 2025-2035. The Canadian debt settlement market is being driven by rising consumer debt levels, including credit card debt, student loans, and medical loans. The market is growing as a result of the increased demand for household loan debt settlement brought on by rising living expenses.

Market Overview

The Canadian debt settlement market is the area of financial services where businesses and individuals bargain with creditors to lower outstanding debts, usually by making lump-sum payments that are smaller than the total amount owed. Since debt settlement is typically an informal, private negotiation process, it differs from formal insolvency proceedings like bankruptcy or consumer proposals. Due to the pervasive use of credit cards, personal loans, and other unsecured borrowing methods, consumer debt has been rising steadily. High-interest credit cards, medical costs, student loans, and other financial commitments cause many people to accrue debt, which they frequently find difficult to repay on time. More consumers are finding it difficult to handle their outstanding balances as living expenses rise and wages stagnate in some industries.

In the first quarter of 2024, the Canadian debt market continued to grow slowly overall. $1.5 trillion in loans have been issued so far this year, mostly due to the need for fresh funds. In comparison to 2023, loan issuance rose by 6%. The majority of lending in Canada came from the real estate and financial services industries, which were followed by the retail and wholesale and other professional services industries. Nearly 60% of all business loans in Canada came from these four sectors.

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The labour market is slowing, consumer spending is stagnating, and effects on cyclical industries that haven't created many jobs since August 2023.

Report Coverage

This research report categorises the market for the Canada Debt Settlement market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada Debt Settlement market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada Debt Settlement market.

Driving Factors

The market for Canadian debt settlement is driven by the country's rising demand for debt settlement services due to rising consumer debt, especially in mortgages and unsecured loans. Financial stress and defaults are growing, particularly among younger generations, as the cost of living continues to help market growth. Moreover, the market expansion is rising due to digital platforms and other payment platforms, which have increased the popularity of settlement solutions. Besides, the debt settlement process is being reduced by innovations like digital payment platforms and AI-powered negotiation tools, while improved financial literacy initiatives and regulatory updates are encouraging market expansion. The market is also growing as a result of the emergence of private credit and alternative lenders, which give consumers looking for debt relief additional options.

In November 2025, Galloper Gold Corp. announced that it had completed a debt settlement by issuing shares to clear outstanding liabilities. Mining companies in Canada frequently engage in equity-for-debt settlements due to their limited cash flow.

Restraining Factors

Despite wide market adoption, growth has been hampered by oversight from regulators, consumer trust problems, high service costs, and economic volatility.

Market Segmentation

The Canada debt settlement market share is classified into service type, and distribution channel.

• The debt negotiation services segment held a substantial share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period.

The Canada debt settlement market is divided by service type into debt negotiation services, debt counselling services, debt management plans, legal assistance for debt settlement, and other services. Among these, the debt negotiation services segment held a substantial share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This segment growth is driven by concentrating on mediating agreements between creditors and debtors to lower repayment amounts. These services, which help to avoid bankruptcy and lessen financial stress, are appealing to customers who are overburdened with debt. The emergence of digital platforms has increased accessibility to debt negotiation services, increasing speed and transparency.

• The online/digital platforms segment dominated the market in 2024 and is anticipated to grow at a significant CAGR over the forecast period.

The Canada debt settlement market is segmented by distribution channel into online/digital platforms, offline/traditional channels. Among these, the online/digital platforms segment dominated the market in 2024 and is anticipated to grow at a significant CAGR over the forecast period. These platforms increase customer convenience and transparency by providing automated negotiation tools, real-time communication, and user-friendly interfaces. Digital solutions expedite settlement procedures and lower operational costs for providers. Additionally, they make data-driven insights for customised debt management plans possible. The emergence of chatbots driven by AI and mobile apps improves customer support and engagement.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada debt settlement market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an in-depth analysis of the companies' current news and developments, including product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for evaluating the overall competition in the market.

List of Key Companies

• BDO Debt Solutions
• Consolidated Credit Counselling Services of Canada Inc.
• Pierre Roy & Associés
• Sands & Associates
• David Sklar & Associates Inc.
• Jean Fortin & Associés
• Ginsberg Gingras
• Harris & Partners Inc.
• Credit Canada
• Hoyes, Michalos & Associates
• MNP LTD
•  Others

Recent Developments:

• In November 2025, KO Gold Inc. announced that it entered into debt settlement agreements to resolve outstanding debts totalling approximately CAD $493,471.24. The company will issue common shares to creditors in exchange for eliminating these liabilities.
• In October 2025, Telescope Innovations Corp. announced that it had completed a debt settlement transaction by issuing shares to clear outstanding liabilities. Telescope prioritises cash preservation for high-value chemicals and pharmaceutical technology development while managing debt.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2035. Decision Advisior has segmented the Canada debt settlement market based on the below-mentioned segments:

Canada Debt Settlement Market, By Service Type

• Debt Negotiation Services
• Debt Counselling Services
• Debt Management Plans
• Legal Assistance for Debt Settlement
• Other Services

Canada Debt Settlement Market, By Distribution Channel

• Online/Digital Platforms
• Offline/Traditional Channels

FAQ

Q: What is the size and growth forecast for the Canada debt settlement market?

A: The Canada Debt Settlement Market is expected to grow at a CAGR of 5.10% from 2025 to 2035. Rising consumer debt, including credit card, student loan, and medical debt, along with increasing living costs, drives demand for debt settlement services.?

Q: What services are included in the debt settlement market?

A: The market includes debt negotiation services, debt counselling, debt management plans, legal assistance for debt settlements, and other related services. Debt negotiation services held a significant market share in 2024 and are expected to grow notably, as they mediate agreements to reduce repayment amounts, helping consumers avoid bankruptcy.?

Q: How is the market distributed by channel?

A: Online and digital platforms dominate the market in 2024, with significant growth projected. Digital solutions enhance accessibility, transparency, and speed through automated negotiation tools, AI-powered chatbots, and mobile apps, lowering operational costs and improving user experience.?

Q: What are the key market drivers?

A: Primary growth drivers include rising consumer debt levels across mortgages and unsecured loans, financial stress, especially among younger generations, increased adoption of digital payment and negotiation platforms, innovations such as AI-powered negotiation tools, and improved regulatory frameworks promoting market expansion.?

Q: What restrains market growth?

A: Challenges include regulatory oversight, consumer trust issues, high service costs, and economic volatility, which impact market growth despite widespread adoption.?

Q: Who are the major players in the Canadian debt settlement market?

A: Key companies include BDO Debt Solutions, Consolidated Credit Counselling Services of Canada Inc., Robotiq Lévis, Pierre Roy & Associés, Sands & Associates, David Sklar & Associates Inc., Jean Fortin & Associés, Ginsberg Gingras, Harris & Partners Inc., Credit Canada, Hoyes, Michalos & Associates, MNP LTD, among others.?

Q: What are recent developments?

A: In 2025, Canadian companies like Galloper Gold Corp., KO Gold Inc., and Telescope Innovations Corp. completed notable debt settlements involving issuing shares for debt clearance, reflecting the utilisation of settlement methods beyond personal consumer markets into corporate debt management.?