Any resident of London, Ontario can end up in debt.
It doesn’t matter whether you used to have hundreds of thousands of dollars in your account.
It’s still possible for the bills to mount up.
This can occur slowly but little by little they will climb to the point where you no longer feel as though you can handle them.
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This is particularly true if you are dealing with a high level of interest.
Interest rates can be the real killer when you are dealing with debt payments.
That’s why you need to explore ways to eliminate the high-interest rates and ensure that your debt is far easier to manage.
Some of the possibilities to consider include credit consolidation and credit counseling.
How does this work?
What is Debt Consolidation And Credit Counseling?
One of the first steps you can explore is debt consolidation.
In doing so, you can ensure that your debt is easier to manage because you will then only owe money to one credit.
In a lot of cases, debt consolidation also means a lower level of interest.
So, rather than having multiple interest rates on different loans you have one interest rate which is far easier to afford.
This will allow you to breathe easily while still continuing to pay off your debt.
It stops debt becoming a nightmare where the amount you owe is growing so quickly, it’s impossible to keep up.
Debt consolidation can be a smart choice if you are currently dealing with high-interest rates and you owe multiple creditors.
However, if you are already working with a low-interest rate and you only have a couple creditors it may not be in your best interest at all.
This is particularly true if you have a poor credit rating because you will struggle to access a lower interest rate.
However, there are other options and that’s why you should also consider credit counseling.
With credit counseling you will be able to work with a licensed professional.
They will help you manage your budget and create a payment plan that matches your financial needs.
Not for profit credit counselling solutions are available in London, Ontario so you don’t have to worry about paying a fee for a service like this.
The aim is to ensure that your debts and expenses become easier to pay because it’s based on what you can afford.
This isn’t a cookie-cutter service, it will be completely personalized to match your needs.
Ultimately, your debt management plan will debt on the assets you have as well as the money that you owe and the wiggle room available in your budget.
It’s worth noting that when you start working with a counselor, you will find that lenders are far more supportive too.
They will understand that you are working to pay the debt that you owe rather than wiping it clean.
As such, they may be willing to offer you possibilities such as lower rates of interest or reduced debt payments overall.
Once you start your counseling, your counseler will explain how the different options work.
They will explain the situation in terms that are easy to understand and that make complete sense to you.
Settling Your Debts
You might be wondering how you can settle your debts.
You can do this with the support of your counselor.
They will work with you to ensure that you pay a percentage of the debt that you actually owe.
In doing so, the rest of the debt can be wiped clean.
However, it’s important that you don’t try to pay off less than you can afford.
If you do this, then lenders will be less likely to support you and may instead charge you the full amount including interest.
To settle the amount, it’s possible that you will need to sell your assets and potentially borrow money from sources that are not going to charge you interest.
This could include friends and family members.
Your credit counselor can help you with these decisions and find out whether it is possible for you to pull together a lump sum big enough to satisfy your creditors.
What Are The Legal Options
Before you consider bankruptcy, there are alternatives for you to think about.
You may want to explore a consumer proposal.
A consumer proposal is where you work with a trustee to come up with an offer for your creditors.
This offer is based on what you can afford and should always be more than what a creditor would receive through bankruptcy.
Creditors can vote to approve or reject the proposal.
If the majority approve it in a vote then the proposal passes.
You can then move forward with the process.
If they reject it, you may want to consider entering informal negotiations with the creditors.
If this fails, that’s the point where it can be worth filing for bankruptcy.
Be aware that while this will wipe the slate clean, you will need to surrender the majority of your assets.
You won’t be left with nothing but in many ways you will be back to square one.
As you can see, you’re not out of options if you’re suffering from debt in London, Ontario.
There are numerous possibilities and paths for you to consider.
In fact, there are so many choices, you might not know which one is going to be right for you.
We can help you there.
At Bankruptcy Canada, our expert team can offer advice on the phone or provide an evaluation based on your individual situation.
There’s no need to suffer in silence any longer.
You can get the relief you require.