Debt Management

Automatic payment is a scheduled transfer or debit set up to make required credit payments without manual action each cycle.

Practical credit-management terms that help readers understand how account behaviour affects a Canadian credit profile.

Credit counselling is guided support that helps a borrower understand debt trouble, repayment options, and possible next steps.

Credit utilization is the share of available revolving credit that is currently being used.

A debt consolidation loan is a loan used to combine multiple debts into one structured repayment arrangement.

A debt management plan is a structured repayment arrangement used to organize unsecured debt through a guided plan.

Debt settlement is an arrangement to resolve a debt for less than the full claimed balance through negotiated compromise.

A late payment is a required payment that was not made by the due date.

A limit increase is a change that raises the approved borrowing ceiling on a revolving account.

An on-time payment is a required payment made by the due date under the credit agreement.

A payment deferral is a temporary arrangement that lets the borrower postpone or modify scheduled loan payments.

A payment due date is the deadline by which the required payment must reach the lender or issuer.

Rehabilitation after insolvency is the process of rebuilding credit and financial stability after a formal insolvency event.

Rent reporting means eligible rental-payment information is sent to a credit-reporting system and may affect the borrower's file.