Debt Relief for Seniors: 6 Options and Resources

Debt Relief for Seniors: 6 Options and Resources

Debt can affect many people throughout their lives and can be quite a stressful experience. Many need to learn how to pay their creditors while facing high pressure and demand to complete their payments.

Debt can also affect seniors. This group’s primary source of income comes from their retirement savings plan and social security; therefore, it can be easy to worry – especially if seniors end up outliving their expenses and still have debts to pay.

However, there is no need for fear – the solution is to look for reliable and responsible licensed insolvency trustees. At Risman Zysman, our trustees are friendly and ready to explain all your debt-relief options. Contact us at 416-222-4600 for more information.

What Are Some Signs of Debt Problems?

Here are some signs that you or a senior you know has debt problems:

    • You go through wage garnishments
    • You can’t pay bills on time
    • The debt consumes more than 20% of your income
    • It becomes difficult to save money
    • Creditors start contacting you for payments
    • You delayed payment, which resulted in cuts in your bills or subscriptions
    • Your debt balance keeps on growing
    • You have only one line of credit to pay for bills and mortgage
    • You pay your credit card with minimum payment only
    • You are using your RRSP to pay your debt

If some of these points sound familiar to you, then you must contact a professional insolvency trustee to manage your payments and assist you with your options.

What Happens When You Do Not Pay Your Debt?

If you need to know where to start and end up delaying your payments, creditors will begin to call your number or will send you letters. This can be particularly stressful for seniors, who may need more resources to make payments or often forget about them.

Creditor calls and demands can also add stress if seniors deal with health issues or family problems.

Failure to pay for your debt will leave a bad mark on your credit. An adverse credit line can affect any mortgage renewals or deny applications for new credit cards – and this can significantly impact the lives of seniors. There are other risk to debt relief options.

If you need assistance with paying your debt, Risman Zysman provides a debt calculator you can use – you can find it here.

What Are the Options and Resources Seniors Have for Debt Relief?

elderly citizen debt relief options

A competent and reliable licensed insolvency trustee can provide seniors with the best debt relief option, as cashing out the retirement savings plan is not advisable – many seniors have no assets, and their Registered Retirement Savings Plan is their only source of income.

Risman Zysman insolvency trustees are licensed, reliable and trustworthy. We will be able to provide you with efficient options and resources for you or any senior you know to go debt-free. 

Some of these debt relief options include:

Consumer Proposal

A consumer proposal is an agreement between the consumer – in this case, the senior on debt – and creditors. A consumer proposal suggests debt payment during a set period of time based on someone’s budget. This method does not hurt the consumer’s line of credit and allows them to have up to 80% of their debt forgiven.


Declaring bankruptcy is another option for seniors to receive debt forgiveness. This method harms someone’s line of credit. However, keeping their home and retirement savings pan is most important for seniors.

When declaring bankruptcy, seniors can do so by liquidating assets. Although a standard method, personal bankruptcy shows up on the line of credit for as many as ten years. However, seniors can still rebuild their credit over time.

Government Programs for Seniors

This is yet another option seniors can run to for debt relief. Licensed Insolvency Trustees can advise seniors about any debt relief programs the government has available. In Canada, many people have their registered retirement plans protected in cases of consumer proposals or bankruptcy declarations.

Seniors can also simply inform creditors that they cannot pay for the debt – especially if their source of income is mainly through their retirement plan. If an income is limited, seniors can tell the Canada Revenue Agency that they are unable to pay for their debt.

Payday Consolidation Programs

Another option for seniors to pay their debt is to enroll in a payday loan program. They are easy to get and assist seniors with their short-term loans through affordable monthly payments.

Debt Settlement

In a debt settlement, seniors will negotiate with creditors and agree on a payment amount that is suitable for them. Once they make the necessary payment, they will be debt free.

Reverse Mortgage

With this option, the requirement is that seniors must be 62 years old to qualify. If they have equity in the house and can make monthly payments for taxes or insurance, then a reverse mortgage might be a good loan payment option. 

In this method, the mortgage can be paid or sold to balance out the loan payments.

Contact Us

Do not cash out of your Registered Retirement Savings Plan anymore! Seniors can contact Risman Zysman about their debts. We have 45 years of experience as licensed insolvency trustees and can better advise you in your debt-free journey. 

How Risman Zysman Can Assist You?

Our friendly licensed insolvency trustees offer many debt relief services for the best interests of their clients. We will explain to you all of your options and help you get back on track with your money and credit and remain debt-free.

With decades of experience, we can reduce your debt by 80%. Contact us today for a free consultation by filling out our consultation form or calling us at 416-222-4600 or 844-222-6824.

At Risman Zysman, we help you get out of debt.