Understanding Your BC Debt Consolidation Options
Debt can often consume people’s lives, making it difficult to save money, afford the things they’d like to buy, and rest easy when it comes to their finances and debt consolidation in BC.
It’s easy for borrowing to spiral out of control, with countless people around the world struggling with mounting debt, but this doesn’t mean that you don’t have a way out of it.
Debt consolidation provides you with an excellent way to make your outstanding credit more manageable.
This process is simple; you take out a loan that is large enough to cover your other debts, moving all of the money you owe into one place.
This can lower your minimum monthly payments and make your loans cheaper overall.
Bankruptcy Canada can help you with this process, but what are your BC Debt consolidation options?
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Why Should You Consolidate Your Debt?
There are many reasons for using debt consolidation to take control of your finances.
When your debts go out of control, your living expenses increase or the interest rates you’re paying are too high, this option can provide you with a simple way to solve your financial problems.
Payday loans have also become a significant problem in recent times, with many people finding themselves having to take out new loans to be able to pay the last one.
Debt consolidation will give you more time to pay the money you owe, making it easier to make payments alongside your expenses.
British Columbia Debt Consolidation Options
There isn’t any single service that can be considered a go-to when it comes to debt consolidation.
The route you choose will depend on your situation and goals, but the expert team at Bankruptcy Canada can offer support when you’re making this decision.
Debt Consolidation Loans
The most common way to handle this process is through a debt consolidation loan.
Many lenders offer this service, with loans that are designed to be flexible and repayable at your own pace.
This can be used to reduce your overall interest rates or simply make it easier to manage your debts.
Of course, though, having a low credit rating can make it harder to get your hands on a loan like this.
Buying a home is an investment, but it may not always go as far as you expect it.
Remortgaging your home to cover your debts can be a good way to reduce the cost of the money you owe, and could be a better option for those struggling to get a regular debt consolidation loan.
This comes with the added risk of having your home taken from you if you fail to make regular repayments.
Debt Management Support
A debt management program is designed to lower your interest rates and squish all of your loans into an easy monthly repayment, all without forcing you to take on more loans.
Our expert team can talk you through this process and help you to determine your eligibility.
Making an agreement with your creditors can be a challenge on your own, but a consumer proposal can make give you a much greater chance of success.
You will be able to negotiate an easier repayment structure, while also benefitting from a stay of proceedings, stopping your creditors from harassing you to make payments.
Paying off your debt in a single lump sum will be a great feeling.
Windfalls like inheritance and work bonuses can make this possible, though it will be hard to save to do this if you’re paying out a lot each month to cover your loans.
If you’re able to go down this route, you could save a lot of money on interest.
Options To Avoid
It can be tempting to choose a less sensible route when you’re looking at your debt consolidation options.
These are often easier and can seem like a good choice until you spend a few months living with them.
Credit cards are often the main reason people have to look for support with debt consolidation, so it doesn’t make much sense to use them as a way to handle this process.
Even those which offer a period of interest-free usage can be a trap, leaving a lot of people with unmanageable minimum monthly payments.
Overdrafts/Lines of Credit
Lines of credit and overdrafts aren’t designed to be used for debt consolidation.
Those offering services like this won’t expect you to use them for this purpose and may get in contact with you if they’re concerned about the amount of time you’ve owed money like this.
Along with this, this sort of debt can also be very hard to pay back, and you could get stuck with your overdraft forever.
Loves Ones & Friends
Those who care about you will often be willing to lend you money.
This idea can be tempting, with most people being unwilling to charge interest when it’s someone they love.
Of course, though, you could make their life a lot harder and put a strain on your relationship if you struggling to pay what you owe.
It isn’t worth losing friends or family members over something like money, and the best way to avoid this is by refusing to borrow money from them in the first place.
Getting Help With Debt Consolidation
Bankruptcy Canada has been working with debt consolidation cases for more than 20 years.
Our team of financial experts can guide you through every step of this process, helping you to find the best option for you, and handling the tricky bits that come with a job like this.
But it doesn’t stop here; we’ll be there to support you with your finances well into the future.
We encourage anyone considering debt consolidation to get in contact with our friendly team.
Filing a consumer proposal is another way to get your debts consolidated if you have bad credit.
Certain debt management plans only work if you have a high enough credit score and can make reasonable debt repayments to your creditors.
A consumer proposal is a popular way to become debt free in Canada if you have a poor credit score but can make a fair payment each month to your creditors.
Credit card debt and other types of unsecured debts can be consolidated through a debt proposal agreement.
You can give us a call at 1-877-879-4770 or email us on Gordon@BankruptcyCanada.com, and we’ll be happy to offer confidential and obligation-free advice.