Newmarket, ON Debt Solutions
Debt in Canada has reached an epidemic proportion.
The country’s citizens are now trillions in debt, so it’s absolutely no surprise that the amount of people who are now filing for bankruptcy has rocketed.
If you are one of the many people who are struggling with debt, then you may want to find a way out so that you can put an end to those collection calls while also getting the support you need.
Credit counselling is always an option if you are in debt.
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What is Credit Counselling?
Credit counselling is essentially a service which offers you solutions that will help you to get out of debt.
It will also help you to stay out of debt in the future as well.
If you want to get the best outcome out of your debt, then you need to try and choose a non-profit organisation who are accredited.
Bankruptcy Canada can help you to contact a licensed trustee who can then give you the support you need.
We can also advise you on Newmarket credit consolidating as well.
How does Credit Counselling Work?
When you work with a debt agency such as Bankruptcy Canada, you will receive counselling services and you can also have your financial situation reviewed.
Your agency will not contact anyone If they do not have your consent and you won’t be obligated to go with an option if it is not something that you are completely comfortable with.
At the end of the day, it is completely up to you which route you decide to take when it comes to consolidating credit in Newmarket.
What can a Counsellor do for You?
Credit counsellors are able to help you to get out of debt and they can also help you to improve your financial situation.
Most of the time, your counsellor will put you on a customised debt management plan.
This means that most of the time, they will work with you to find a budget that you can ultimately stick to while also helping you to make payments towards your debt.
Credit counsellors can also speak to all of your creditors, on your behalf, so that a new payment schedule can be proposed.
This will be based on the amount that you are able to pay.
Your creditors, at the same time, will also be asked to reduce the interest rate or stop it altogether while the program is in place.
Do you Need to Qualify for a Credit Counselling Service?
You have to be at the age of majority where you live.
Other than this, there are no requirements that you need to meet in order to qualify for credit counselling services.
Of course, having a creditor contact you every single day can be a taxing experience to say the least.
If you sign up with a credit counselling provider then your creditors will need to go through them as opposed to dealing with you.
If you carry on receiving phone calls when you are on a debt management program, then refer them to your credit agency instead.
How Long does it Take to Be Free From Debt?
The amount of time that it takes you to be free from debt will ultimately depend on your individual situation.
It will come down to the amount of money you owe, and it will also depend on the schedule that you have worked out with your counsellor.
Why do People Take out Consolidation Loans?
One of the main reasons why so many people take out a debt consolidation loan is because it simplifies their finances.
Instead of having a lot of debt payments to keep track of, you will only have one.
Debt consolidation can also save you a lot of money because it reduces your interest rate, by replacing it with a more manageable one.
The smaller monthly payments will make your life much easier and it may even be that you can pay off your debt faster too.
How are Loans Issued?
When you receive a debt consolidation loan, the company who are lending you the money will either use the funds to pay the debts you agree to pay off or they will deposit the funds in your bank.
It is then your responsibility to pay off the debts that you would like to consolidate.
Debt Consolidation Loans
At the end of the day, your credit counsellor will always be able to explain how the system works and they can also help you with the budget you have too.
A debt consolidation loan will mean borrowing more money to pay off what you owe on any of your unsecured debts.
If the credit score you have is good enough for you to qualify for a loan, then your lender may be able to offer you a consolidation loan.
Sometimes a co-signer may be required.
Of course, if you want to make your debt consolidation loan work in your favour then you need to make sure that you have a budget first.
When you have a budget, you can then work out if you can afford the payments that have been set without going further into debt.
Debt Settlement Loans
A debt settlement loan may be an option if you know that your creditors are going to accept a large sum of money as opposed to paying what you owe.
If you are able to offer less than what you owe, then the creditors may be willing to accept this.
In certain situations, this can be a good idea, but a creditor won’t often accept this as a valid option if they know that you are actually able to afford the full payments.
If you want to come up with money for your settlement then it may be a good idea to sell your assets, cash-in any investments you have or even borrow money from your family and friends.
If you believe that debt settlement is a good option, then your credit counsellor will be able to help you with anything you need.
If you want to find out more then contact us at Bankruptcy Canada.
We can then advise you on consolidating credit or debt in general.