Debt Consolidation In Calgary, AB
What is the next step when you’ve been turned down for a Calgary debt consolidation loan?
For a lot of people struggling with debt for the first time, debt consolidation is often perceived as the only way forward.
But when your bank turns your loan application down, you want to reconsider your options before moving forward.
Many other banks in Alberta offer similar debt consolidation loans.
However, consolidation companies and banks share identical eligibility criteria for these types of loans.
In other words, applying for the same loan with another bank is unlikely to be met with success.
The bottom line: a debt consolidation loan in Calgary may not be the right option for you.
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But, thankfully, if you intend to repay your debts, either in their totality or partially – depending on your financial situation – other debt management solutions enable you to consolidate everything under a manageable umbrella payment.
Don’t let financial stress affect your life.
We are here to help you understand the best debt relief solutions to meet your objectives.
What do you expect from Calgary debt consolidation services?
When you find it hard to meet payment deadlines, the prospect of a loan for debt consolidation in Calgary offers a solution that can tackle all your creditors at once.
The bank or consolidation institution repays all your creditors at first, while you can repay the loan over an extended period of time.
The advantage of Calgary debt consolidation loans is that they offer Calgary residents sufficient breathing room to rebuild financial stability.
The loan doesn’t decrease the amount of money you owe, but the interest rate is lower than you would otherwise pay.
For a lot of people, the decreased interest rate can be enough to make the debt more manageable.
Additionally, as all creditors can be paid in full as soon as the debt consolidation loan application is accepted, Calgary residents can rest assured that the immediate repayment will soothe their creditors.
Indeed, when you fall behind your payments, creditors can react in a variety of stressful manners, from transferring your case to a collection agency to suggesting legal action.
Calgary debt consolidation services can help in end the stress cycle related to debts and creditors’ management.
Why are you turned down for debt consolidation in Calgary?
When you’ve put all your hopes on a debt consolidation loan, the last thing you expect is to be turned down.
However, Calgary debt consolidation loans have strict eligibility criteria.
Banks will prefer individuals with a good credit rating, which can be an issue for many people who are dealing with a debt situation.
Unpaid invoices are reported to credit bureaus, which means they appear on your report.
Depending on the gravity of your debt situation, your credit rating might have already been affected negatively.
Additionally, banks and consolidation companies need guarantee that the loan is going to be repaid.
Applicants who have a low income are unlikely to be successful.
Similarly, if you have no asset that can be used as a collateral protection for the bank, you may not be a suitable candidate for this debt management solution.
Some banks also require that you have a cosigner, who will repay your loan if you are not able to.
Sometimes, you will need a combination of all the above.
Sometimes financial institutions require only a guarantee factor for your loan application.
Unfortunately, debtors with a good credit rating, high income, assets that can be sold for repayment, and a wealthy cosigner are uncommon.
What’s the next step for those with no debt consolidation loan?
Being turned down for a Calgary debt consolidation loan is not the end of your debt management journey.
Consider it the beginning of debt freedom.
It is, for many debtors, a wake-up call that forces them to assess their financial situation carefully.
You can reach out to a licensed insolvency trustee in Calgary, Alberta, to understand the best debt consolidation or debt management options available.
Your local trustees are in:
- MNP Limited, 1500, 640-5th Avenue SW, Calagry, AB, T2P 3GA
- Alternatively, toll free number: 1-866-246-7277
You can set up a free consultation with a trustee to evaluate your financial situation.
For this, your trustee will need information about your household income, your creditors, and amount of money you owe.
It is a free, non-judgmental, and objective meeting that can help you understand the best alternative to a Calagry debt consolidation loan.
Alternatives to Calgary debt consolidation
If you are looking to consolidate all your debts into a manageable, monthly payment that can help you repay your creditors, either in full or partially, your trustee can help with a number of options.
Credit counselling companies can negotiate with your creditors to secure an interest rate reduction that would provide some breathing room with repayment.
Your counsellor agrees with creditors on a repayment plan that combines all debts into a single, monthly payment.
With credit counselling, you still get to repay your debts in full, which makes it a suitable option for debtors who can afford full repayment.
A consumer proposal is a legally-binding agreement that is administered by a trustee to obtain a significant reduction of your debts.
With a consumer proposal, you can cut your repayment by up to 80%, consolidated in monthly payments.
Your debt is forgiven.
Alternatives that don’t consolidate but cut down payments
Not all debt management solutions consolidate payments.
A debt settlement plan, for instance, encourages you or a debt settlement company to negotiate new payment terms with each creditor in an effort to reduce the amount you pay.
However, more often than not, each debt is settled individually, which means you still need to keep track of your creditors.
You can also file personal bankruptcy with your trustee.
In bankruptcy, you don’t repay your debts but you need to pay the federal bankruptcy costs.
Your debt is forgiven at the end of the term.
What can you expect from a Calgary debt management plan?
You can get free of debt with a variety of debt management and debt relief programs.
As a result, you can regain control over your finances and rebuild your credit rating once the debt is repaid or forgiven.
For people struggling with creditors, it is the guarantee of a stress-free lifestyle.
When debt consolidation isn’t an option for Calgary residents, you can explore other debt management solutions in all confidence by contacting a trustee.