Debt Consolidation in Winnipeg
Winnipeg, MB 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 Winnipeg, we 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, it’s time to seek help.
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What is debt consolidation?
In Canada, debt consolidation can take a couple of different forms.
They are as follows:
- 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
The first option, which is the most discussed, is that of a debt consolidation loan.
While there are benefits and disadvantages to a debt consolidation loan, the goal of one is to have a bank or other financing company provide you money to pay off all of your outstanding debts.
In this, the bank consolidates the debt into one larger loan, rather than multiple places that need to be paid.
In this scenario, the debt is typically required to be paid off between two and five years, and you will be paying just one direct company instead of multiple credit card companies.
In addition, the loan you are paying on typically has a relatively low level of interest, unlike many credit cards.
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.
A consumer proposal should likely be the last option for loan consolidation but should be a possible solution that you are aware of.
In this scenario, 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 anywhere from 3 to 8 years.
During this time, you are not eligible for credit cards or loans, and it can take years to rebuild your credit.
Other debt consolidation options in Winnipeg
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.
Credit counselors and debt managers can help you see the light at the end of the tunnel, and provide one or several debt consolidation tactics to help you.
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 do 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 Winnipeg and aren’t sure where to turn to consolidate your debt into one lump monthly payment, contact Bankruptcy Canada for a no-obligation meeting with one of our financial professionals.
The initial meet up is free of charge, and our non-biased debt experts can have you start the process to a brighter financial future.