Debt Help & Credit Counselling in Barrie, Ontario
Barrie, Ontario Debt Help & Credit Counselling Services
What is the first word that pops into your mind when you think about debts?
For Barrie residents who have consulted a licensed insolvency trustee, debt can arise a variety of emotions, including shame, fear, anxiety, and confusion.
We understand that not being able to make payments on time can be a source of stress.
However, we believe that becoming free from debt is a feasible option for a lot of people.
The bottom line is that debt can only crush your mental health and financial situation if you don’t do anything about it.
That’s why we recommend getting debt help & credit counselling in Barrie, Ontario, to start your journey towards debt freedom.
Evaluate your financial situation
There could be a variety of reasons why people struggle with debts.
Whether you find yourself suddenly unemployed, or you’re out of university and facing considerable expenses to settle into your first job, debt can happen to anybody.
But you can make your situation more manageable to avoid overspending.
Ultimately, debt occurs when your expenses are higher than your income.
Learning to track your spending and set up financial goals can help you regain control over your finances.
It is fair to say that budgeting only may not be sufficient to recoup your losses and recover from debts.
However, it doesn’t mean managing a budget will not help you with debt relief.
On the contrary, Barrie trustees are dedicated to assessing your household’s budget to understand your financial situation and what you can afford to pay off.
Credit counselling and other debt consolidation plans
Credit counselling is a popular debt management plan that enables you to combine all your debts into one monthly payment to your creditors.
The debt management program requires the participation of creditors and their readiness to waive interest rates.
Credit counselling is a suitable option for individuals who want to pay off their debt in full but don’t qualify for a consolidation loan.
A debt consolidation loan lets you pay off all your debts at once if your application is successful.
However, it doesn’t cancel the debt.
You still have to pay off the same amount; however, you do it by repaying the loan.
Loans typically have a reduced interest rate, which makes it a manageable option.
Other debt helps when you can’t afford to pay off in full
If paying off in full isn’t an option, you can consider debt options that let you pay only a portion or nothing at all towards cancelling your debts.
Debt settlement lets you negotiate with your creditors to design new payment terms.
In the process, you can obtain a debt reduction.
However, debt settlement negotiations are individually organized with each creditor, making repayment difficult to manage.
A consumer proposal is a legally-binding debt relief program administered by a trustee.
Payments are consolidated with a consumer proposal, which means that you don’t have to worry about managing individual creditor interaction.
With a consumer proposal, you pay off only a portion of the debt towards debt forgiveness.
If you have more than $1,000 in debt and don’t have any asset to sell to ensure you can afford to make payments on time, your trustee in Barrie may recommend filing personal bankruptcy.
In bankruptcy, you only pay for the federal cost of bankruptcy, $1,800, after which the debt is forgiven.
Call us at 1-844-294-7980 or 705-230-0253 to see a trustee in Barrie and find the help you need.