Burnaby, BC Debt Consolidation Services
Lying just to the east of Vancouver, Burnaby is one of British Columbia’s most desirable cities.
But while this bustling, diverse and beautiful city is a wonderful place to settle, many of its inhabitants struggle to get out from under the shadow of their household debts.
In fact, all over the country, Canadians are finding it hard to manage their debts effectively and take control of their finances.
The average Canadian household has an eye watering $20,000 of non-mortgage debt.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
To make matters worse, many are spending up to 7.3% of their disposable income on interest.
It’s time to take control of your debts and achieve financial freedom.
Debt Consolidation in Burnaby, BC can allow you to do just that!
What makes debt spiral out of control?
It’s important to consider what causes debts to become so unmanageable for many households.
This tends to be the fact that they’ve piled one debt on top of another.
As we rely more heavily on credit cards, store cards and unsecured loans we can find ourselves juggling multiple debts with wildly varying rates of interest.
As a result, we often find ourselves throwing more money away on interest and spending much less than we should on paying down the principal.
Those who only make the minimum repayments on their credit cards, for instance, could be paying off as little as $10 per month per card of their principal debt.
Debt Consolidation helps you to consolidate all of your existing debts into a single, manageable monthly payment.
This can result in significantly reduced interest rates and help you to live debt-free faster.
Know your options
When it comes to consolidating your debts, you have several available options.
The right one for you will depend on your current debts, your creditors and your circumstances.
Let’s take a look at the pros and cons of each.
Debt Consolidation Loan
A Debt Consolidation Loan effectively repays all of your existing debts and replaces them with a single debt at a much more palatable rate of interest.
Most Debt Consolidation products have an interest rate of around 10%.
Compare this to the 19%-29% you’d expect from most credit cards and it’s clear to see how much you could save every month.
It may even improve your credit rating.
However, because a Debt Consolidation Loan may have different terms to your existing debts, you may have to pay more each month, but pay off your debts much faster.
If your credit rating is poor, however, you may not qualify.
But don’t worry, you still have options!
Refinancing your assets
If you own your home, remortgaging this asset could allow you to repay your debts and spread the principal over a longer timeframe by enfolding it into your mortgage.
This can see you pay less in terms of monthly repayments and interest.
Although it may increase the overall interest rate of your mortgage product.
Debt Management Plan
Finally, if your credit rating is less than stellar, and you don’t have any assets to leverage, you may still be able to take control of your debts through a Debt Management Plan.
There are many non-profit and private Credit Counselling services that can help you to set this up, and many creditors are amenable to it.
A Debt Management Plan can reduce your debts to a single monthly repayment and allow you to get completely debt-free within 5 years.
Under the terms of the plan, you can significantly reduce the amount you pay in interest.
In some cases, you may be able to write off your interest completely.
It’s important to remember, however, that a Debt Management Plan is a voluntary arrangement and as such, it is not legally enforceable.
There are some debts (such as government and CRA debts) against which a Debt Management Plan cannot be leveraged.
Still, this option can get you debt-free in 3-5 years, although it will remain on your credit report for a further 3 years after it has been settled.
How we can help
Whatever your debts and circumstances, we can help you to take control of your debts and live debt-free faster.
Since we started out in 1999 we’ve helped hundreds of thousands of Canadians from all walks of life to achieve freedom from their debts.
Want to know more about Debt Consolidation in Burnaby and other options?
Call us today on (877)879-4770 to find out what we can do for you.