Debt Consolidation Enabled This Dad to Pay Off $120K After Divorce and Rebuild His Life
Divorce is one of the biggest financial setbacks a person can face. For many Albertans, it means struggling with alimony, child support, and mounting debt. Mickey was no exception.
After his 21-year marriage ended, he found himself drowning in $120,000 of debt — from credit cards, personal loans, and unpaid bills. Then, a sudden health issue forced him to leave his job, making it impossible to keep up with payments. Before he knew it, his debt had spiraled out of control.
“That was the last straw that broke the camel’s back for me. Every month, it was robbing Peter to pay Paul. I was unable to keep up on payments, and every month, I was just getting more behind.” – Mickey
The Debt Spiral Mickey Faced:
- High-interest credit cards maxed out
- Missed payments leading to penalties and late fees
- Alimony and child support adding financial strain
- Constant financial stress and uncertainty
Like many Albertans, Mickey tried everything — making minimum payments, transferring balances, and cutting expenses. But nothing made a real dent in his debt. That’s when he started researching a debt consolidation loan as a way to avoid bankruptcy.
Consolidation Loans Were the Alternative to Bankruptcy That Mickey Needed
Many people think bankruptcy is the only option when they’re feeling completely sunk by their debt. But insolvency can have serious long-term consequences:
- Damages credit for six or more years
- Makes it harder to qualify for loans in the future
- Can impact financial opportunities for years to come
Mickey knew bankruptcy wasn’t the right choice for him. That’s when he started searching for consolidation loans and government debt consolidation programs.
He Explored Debt Consolidation Loans to Avoid Bankruptcy
Looking for a way out, Mickey thought about getting a debt consolidation loan to take control of his finances. This type of loan could offer lower interest rates than credit cards, combine multiple payments into one, and provide a clear plan to pay off debt. However, because he had a lot of debt and a poor payment history, his credit score had dropped, making him a high-risk borrower. High-risk loans often come with very high interest rates — sometimes close to the legal limit of 35% — which would make paying off his debt even harder.
With this in mind, Mickey spoke with an Accredited Financial Counsellor at Money Mentors, Alberta’s exclusive provider of the Orderly Payment of Debts (OPD) program.
What Made the Orderly Payment of Debts Program a Game-Changer
The Orderly Payment of Debts (OPD) program is a federally regulated debt repayment plan. But unlike bankruptcy, OPD allows Albertans to repay their debts in full while maintaining financial stability.
After meeting with Money Mentors, Mickey enrolled in the OPD program, and here’s how it helped him:
The Key Benefits of OPD for Mickey:
- Combined all his debts into one affordable monthly payment
- Lowered his interest rate to a fixed 5% (instead of 22%+… or 35%!)
- Provided a clear repayment schedule — completed in under five years
- Allowed him to keep his home and car
Unlike loan consolidation lenders, OPD is not a loan — it’s a structured repayment plan designed to help Albertans clear their debt without taking on more credit.
With this structured approach, Mickey regained financial stability and found peace of mind.
Credit Consolidation and Budgeting Helped Mickey Develop Better Habits
A credit consolidation loan can simplify repayment, but true financial freedom requires changing money habits.
Mickey’s Money Mentors Counsellor introduced him to a simple but powerful budgeting method:
The $100 Budgeting Challenge
- Every Monday, he got $100 to cover day-to-day expenses that came up until Friday
- No credit cards, no extras — just real necessities
- Before every purchase, he asked: “Is this a want or a need?”
“That was probably the best exercise I have ever done because it made me think if it was a need or a want.” – Mickey
This exercise completely changed how he saw money. He cut unnecessary spending, prioritized savings, and gained control over his finances.
His commitment paid off — Mickey finished his OPD one month early, proving that with the right plan, getting out of debt is possible.
A Bill Consolidation Loan Wasn’t His Best Choice — OPD Was
Instead of taking out a bill consolidation loan, Mickey used the Orderly Payment of Debts (OPD) program to pay off his debt and regain financial stability. But his journey didn’t end there — he rebuilt his life and future.
- Gained full custody of his son, ensuring a stable future for his family
- Built $10,000 in savings by sticking to his financial plan
- Started saving for a dream vacation to Ireland to explore his heritage
- Continued using Money Mentors’ budgeting strategies with support from his financially savvy girlfriend
“When you’re standing in line at a restaurant, you open up your wallet, and all that is left is $20 ― it puts things into perspective. I learned to pay myself first, and I never used to do that. Now I have $10,000 in savings, and that was a lesson from the Orderly Payment of Debts (OPD) program!” – Mickey
Mickey’s biggest lesson? Financial security isn’t just about paying off debt — it’s about building a stable future.
Debt Consolidation Loan Alternatives Can Help Albertans Regain Control of Their Money
If you’re stuck in debt, overwhelmed by high-interest payments, and don’t know where to start, a low-interest debt consolidation loan or the OPD program could be the answer.
What OPD and Debt Consolidation Loans Can Do for You:
- Combine multiple debts into one simple monthly payment
- Lower interest rates and create a structured repayment plan
- Avoid bankruptcy and protect your financial future
- Get expert financial coaching to stay debt-free
Speak with an Accredited Financial Counsellor at Money Mentors and start your journey toward financial freedom.
Why Debt Consolidation Works
Mickey’s story proves that debt consolidation isn’t just about paying off debt — it’s about creating a financial future you can be proud of.
Whether you’re struggling with credit cards, payday loans, or overdue bills, there is hope. A well-planned debt consolidation loan or structured repayment plan can help you break free from the debt cycle and rebuild your financial future.
If Mickey could do it, so can you.
