Debt Consolidation in Vernon
Vernon, BC Debt Consolidation Services
If you’re having difficulty keeping track of various payments each month, debt consolidation may be the right choice for you.
With Bankruptcy Canada in Vernon, our financial experts, credit counselors, and licensed insolvency trustees can help find you the perfect debt consolidation solution for your financial situation.
If you’re finding that you’re losing sleep and stressing over how to make payments, or simply want an easier way to pay your bills, let us help.
What is debt consolidation?
In Canada, debt consolidation can take a couple of different forms.
They include the following:
- Debt consolidation loan.
- Consumer proposal.
- A home equity loan, refinancing, or a second mortgage.
- Consolidating on a line of credit.
- Debt management program.
- Debt settlement.
Debt consolidation loan
Debt consolidation loans in Vernon have both benefits and disadvantages but is one of the most effective ways to pay down debt.
The objective of a debt consolidation loan, whether taken through a bank, credit union, or financing company, is to have a lump sum provided to your creditors to pay off your debt.
At that point, you simply make monthly payments to the financial institute.
Instead of multiple payments to various creditors, you are paying one single loan payment.
An added benefit is that debt consolidation loans are usually lower in interest than your credit cards, so it can be easier to pay down the actual principle instead of just the interest, which is a cycle many people in debt find themselves in.
This can be a great way to simply consolidate all your debt into one easy payment.
If you’re struggling with debt though, this may not be the ideal scenario since your credit score does need to be relatively good for companies to offer this option.
The least ideal scenario in consolidating your debt might be that of a consumer proposal, but rest assured that if you find yourself in this scenario, our objective licensed insolvency trustees at Bankruptcy Canada will counsel you through what you can expect, as well as provide you helpful budgeting and credit counseling afterward.
In the event that you want to file a consumer proposal, a licensed insolvency trustee begins a legal process in which all of your debts are consolidated into one, with an offer to pay creditors only a percentage of what is owed to them or to extend the time to pay off the debts.
In this scenario, you pay your trustee each month, and the trustee is responsible for making payments to each of your creditors.
If you choose this, your credit will be negatively impacted for many years, but you can sigh a breath of relief when you are making one lump payment each month to the trustee.
Other debt consolidation options in Vernon
The other debt consolidation options mentioned each have both disadvantages and benefits.
To know which of these would best fit your financial situation, discuss with a debt counselor what options you should take advantage of.
Being honest when you meet with a debt expert is essential in ensuring that you are provided the best option so that you don’t find yourself in the wrong debt consolidation program.
What can Bankruptcy Canada for you?
One of our experienced financial experts will guide you through your debt consolidation options, and help you find the right solution for your unique financial situation.
If you use one of our licensed insolvency trustees, they work on the behalf of both you and your creditors, so their main goal is always to ensure that the situation has the best possible outcome for all parties involved.
With a non-biased perspective, you can rest assured that your debt consolidation choices will be ideal for your specific debt scenarios, depending on how much debt you owe, what type of credit you currently have, and what your priorities are both short and long term.
While Bankruptcy Canada is fluent in bankruptcies, we are also well-versed in all types of debt.
Bankruptcy and consumer proposals are only the last step that we would suggest, as we discuss all of your debt consolidation options.
When you meet with one of our debt counselors, we can help you with the following:
- Create a budget that you can adhere to.
- Give you debt consolidation options to help you handle your bills.
- Save on interest, and have harassing creditors deal directly with one of our insolvency trustees.
If you’re in Vernon and you are not sure which consolidation solution is your best bet to make your debt easier to deal with, contact Bankruptcy Canada for a no-obligation meeting with one of our financial professionals.
The initial meet up is free of charge, and our objective debt experts can have you start the process to a brighter financial future.
You’re not alone in this; we can help you.