How long does it take to pay off debt in Quebec?

When living with high credit card debt, personal loans, or lines of credit, it is natural to want to know how long it will take to pay them off.

The answer, however, depends on several factors: the amount of debt, income, the level of financial discipline, and, above all, the method chosen to repay them. Some debt solutions allow you to keep your credit score intact, reduce the debt amount, and cancel interest, while others erase debt quickly but with heavier consequences.

This guide, which compares the main debt solutions offered in Quebec and their average durations, aims to help you choose the one that would be most advantageous for you, based on your situation.

Repaying your debts without help

Average duration: 3 to 7 years

When their financial situation is not yet critical, many Quebecers choose to repay their debts without assistance. They continue to make the monthly payments required by creditors or set up a personalized repayment plan.

In general, this option takes between three and seven years, depending on available income, the interest rate, and the strictness of the budget. For example, a person who owes $15,000 on a credit card at 19% interest and pays $400 per month will take about four to five years to bring the balance to zero.

Advantages

• Complete autonomy: you manage your finances without an intermediary.

• No negative impact on the credit report: as long as payments are made on time, your score remains stable and can even improve.

• Flexibility: you can pay more or less toward the principal each month, depending on your income and expenses.

Disadvantages

• No debt reduction: you repay the total principal and interest.

• Stress and prolonged duration: financial pressure remains high for several years.

• Risk of relapse: if an unexpected event occurs (illness, job loss, rate hike), the plan can quickly derail.

This method is suitable for disciplined and financially stable individuals who are able to manage their obligations without taking on more debt.

Debt consolidation

Average duration: 3 to 5 years

Debt consolidation is an intermediate solution for those who want to simplify their payments and reduce interest. Specifically, it involves grouping several debts into a single loan at a lower interest rate by dealing directly with a financial institution.

In Quebec, the typical duration of a consolidation loan varies between 36 and 60 months (3 to 5 years). This period depends on the amount borrowed, the negotiated rate, and your repayment capacity.

Eligibility requirements

• Good credit report: financial institutions generally require a sufficiently high credit score to approve the loan.

• Stable income: the lender must ensure you can handle the monthly payments.

• No recent payment defaults: frequent delays or accounts in collection can lead to a refusal.

Advantages

• Easy management: one single payment per month to one creditor.

• Interest reduction: compared to credit cards at 19%, interest rates are much lower.

• Credit score unaffected: as long as monthly payments are made, your credit will not suffer.

Disadvantages

• No debt reduction: you repay the total principal and interest.

• Possible refusal if your credit score is low and your income is insufficient.

• Long-term commitment: you are tied to a fixed loan for several years.

To learn more, consult our article on Debt Consolidation in Quebec.

Consumer proposal

Average duration: 3 to 5 years

The consumer proposal is one of the most popular solutions in Quebec for people who can no longer make their minimum monthly payments but wish to avoid bankruptcy.

This option, governed by the Bankruptcy and Insolvency Act, allows you to negotiate a partial repayment of debts, interest-free, through a Licensed Insolvency Trustee.

How it works

The trustee analyzes your budget and proposes a realistic repayment plan to creditors, generally spread over 3 to 5 years. For example, a total debt of $40,000 could be reduced to $16,000, repayable at $266 per month for 60 months, interest-free.

Once the proposal is accepted by the majority of creditors, all lawsuits, seizures, or harassment stop. You make a single interest-free payment to the trustee, who handles distributing the funds among the creditors.

Eligibility requirements

• Have at least $1,000 in unsecured debt (credit cards, lines of credit, personal loans, etc.);

• Be unable to pay your debts as they come due;

• Have total (unsecured) debts of less than $250,000, excluding the mortgage on your primary residence;

• Have a stable income.

Advantages

• Reduction of the debt amount: often by 30% to 70%;

• No interest: everything is frozen upon filing the proposal;

• Full legal protection: creditors can no longer demand payments or initiate legal action;

• Possibility of early repayment without penalty: you can shorten the duration of your consumer proposal.

Disadvantages

• Moderate impact on the credit report: the score drops temporarily (R7 rating).

• Obligation to respect payments: three defaults can cancel the proposal.

On average, a consumer becomes entirely debt-free in 3 to 5 years with this solution, and sometimes faster if they repay before the end of the term. For more information, consult our article on Consumer Proposal in Montreal.

Personal bankruptcy

Average duration: 9 to 21 months

Personal bankruptcy is the fastest solution to erase debt in Quebec, but also the one with the heaviest consequences. It is intended for insolvent individuals—those unable to meet their obligations and without a realistic possibility of recovery.

How it works

Filing for bankruptcy is done with the help of a Licensed Insolvency Trustee. Upon filing, all eligible debts are suspended, as are interest, seizures, and collection calls. You are legally protected throughout the process.

Bankruptcy generally lasts:

• 9 months for a first bankruptcy without surplus income;

• 21 months for a first bankruptcy with surplus income;

• 24 months or more for a second bankruptcy.

The trustee must seize certain assets (subject to exemptions provided by law) to partially repay creditors. At the end of the monthly payment process, your debts are erased, and you receive an official discharge.

Eligibility requirements

• Have at least $1,000 in debt;

• No longer be able to pay your debts as they come due;

• The value of your assets (what you own) is less than your total debt;

• Be unable to make a viable consumer proposal.

Advantages

• Complete erasure of eligible debts.

• Immediate stay of proceedings (lawsuits, seizures, and calls).

• Short duration: often less than a year for a first bankruptcy.

Disadvantages

• Severe impact on credit: R9 rating for 6 years following discharge.

• Possible loss of certain non-exempt assets (investments or valuable property).

• Social stigma: although common, bankruptcy is still perceived negatively.

To compare these two solutions, consult our guide: Consumer Proposal or Bankruptcy?

Comparative Table: Duration and Impact of Main Options

This table summarizes the essentials: the faster a solution is, the more significant its consequences on credit. Conversely, longer options preserve the credit score more but require sustained discipline and full repayment.

Other factors that influence the duration of debt clearance

Even with these benchmarks, the exact time to erase debt in Quebec varies based on several elements:

• Available income: the higher your income, the faster you can repay.

• Interest rates: a 19% rate practically doubles the total cost of debt over five years.

• Job stability: a stable income makes it easier to keep up with monthly payments.

• Professional support: a Licensed Insolvency Trustee can often reduce the duration by optimizing your plan.

• Personal discipline: strict adherence to the budget remains decisive, regardless of the method chosen.

Which solution to choose to get free faster?

If your primary goal is to save time, personal bankruptcy remains the fastest solution: less than two years in most cases. However, its impact on credit and the potential loss of assets must be well understood before committing.

A consumer proposal often represents the best middle-ground solution:

• It significantly lightens payments;

• It legally protects you against creditors;

• It offers the possibility of early repayment.

In comparison, debt consolidation and independent repayment are more appropriate for people who remain solvent but want to better manage their payments. These options preserve credit but require a prolonged financial effort and do not reduce the principal owed.

Who to contact?

There is no universal answer to the question “How long does it take to erase debt in Quebec?”. It all depends on your personal situation, the amount of your debt, and your ability to repay it.

Duration, however, is not the only criterion to consider. The viability of the plan, legal protection, peace of mind, and credit rebuilding are just as important.

Before choosing, take the time to evaluate your options with a Licensed Insolvency Trustee. This professional will help you objectively compare scenarios, understand their impacts, and determine the most realistic path to regaining your financial freedom.

We help you choose

Wondering which solution would suit you best? Speak with a Licensed Insolvency Trustee to evaluate your options. This interview is free and confidential.

You can call us at 514-839-0132 to make an appointment or fill out our contact form. The advisors at GOBEIL GROUPE CONSEIL serve the entire province.