Debt Relief in Surrey

Surrey, BC Debt Relief Solutions

Financial hardship is affecting people all over Canada and residents in British Columbia are no different.

With increasing housing costs throughout the province, it’s not surprising that a significant proportion of local residents are experiencing problems with debt.

Fortunately, it is possible to access support and debt relief in Surrey and the surrounding areas.

Although most Canadians have some form of debt, there are many misconceptions surrounding the finance industry, and the debt sector in particular.

In reality, there are various debt solutions available to Surrey residents but, sadly, not many people are aware of them.

If you’re looking for debt relief in Surrey, it’s important to understand what your options are.

By learning more about the various types of debt solutions, you can determine which ones are best suited to your unique needs.

Credit Counselling in Surrey

Working with a credit counsellor can be a viable way to get your finances back on track.

Usually, a credit counsellor doesn’t act on your behalf, but they can provide you with advice and information.

In some cases, they may also assist you in writing letters or communicating with your creditors.

If your credit counselling agency offers debt management plans, they may be able to help you minimize the amount you’re paying each month by having the interest on your debts suspended or reduced too.

However, credit counselling does have its limits too.

As a largely unregulated industry, you’ll need to be wary about who you seek advice from.

Furthermore, you’ll need to make the choice between seeking credit counselling from a non-profit organization or paying for advice from a for-profit company.

Debt Consolidation

Debt consolidation is a popular way of managing your debts, particularly if lots of your creditors are charging high interest rates.

In principle, debt consolidation involves taking out one form of credit, such as a loan, and using this to pay off all of your existing debt.

In theory, the consolidation loan should have a much lower interest rate that your current lines of credit.

This means that you’ll pay less overall and will only be repaying one debt every month, rather than making payments to multiple creditors.

However, you do need to look at the terms and conditions carefully before taking out a debt consolidation loan.

It’s not unusual for the interest rate on a consolidation loan to actually be higher than existing debts, in which case it may not be the best way to manage your debts.

Debt Settlement

In some cases, you may be able to negotiate a debt settlement by approaching your creditors individually.

If you offer to pay back half of the outstanding debt at once, for example, the creditor may be willing to write the rest of the debt off.

Although this seems advantageous, there are some drawbacks associated with this form of debt relief in Surrey.

Firstly, very few people in debt have access to the funds required to pay off a significant amount of their outstanding debts, which makes it unlikely you’ll be able to negotiate a settlement figure that both parties agree on.

Secondly, you’ll need to scrutinize the wording of a settlement agreement carefully to ensure that the creditor is agreeing not to pursue the remainder of the debt.

Finally, some debt settlements are noted on your credit report and could have a negative impact on your credit score, so you’ll want to ensure that this won’t happen if you voluntarily agree to a debt settlement with your creditors.

If you’re considering debt settlement, do beware of settlement companies that claim to be able to negotiate impressive settlement agreements on your behalf.

Many consumers are lured in by unrealistic promises, only to find they’ve paid high fees for very little gains.

Consumer Proposal

When people are looking for debt solutions, they often stumble across firms offering debt relief in Surrey.

Claiming to be backed by the government, these organizations are typically referring to consumer proposals, rather than any other form of debt relief.

While consumer proposals can be one of the best ways to deal with unmanageable debt, it’s important to understand the benefits and implications of making a proposal.

If you have outstanding debts which total less than $250,000 (excluding a mortgage on your home), you could be eligible to have them significantly reduced by making a consumer proposal.

If successful, this could reduce your debts by up to 75% and prevent further interest or charges being added to your accounts.

What’s more, you’ll get to keep your assets when you make a consumer proposal.

While you will still need to make repayments on the remainder of your debts, these are likely to be far lower than what you’re paying now.

Bankruptcy

Bankruptcy is often seen as a last resort when it comes to debt management and there’s no doubt that it is one of the most serious solutions to debt problems.

However, bankruptcy can also be a highly effective way of eliminating your debts and giving yourself a fresh financial start.

Although many people are worried that bankruptcy will have a negative impact on their financial standing forever, this doesn’t have to be the case.

In fact, filing for bankruptcy and eradicating your debts gives you the opportunity to start rebuilding your credit score practically straight away.

Often, people can enhance their credit report more quickly if they file for bankruptcy than if they don’t, so disregard this form of debt relief in Surrey simply because of misconceptions surrounding its effects.

Contact Bankruptcy Canada Now

If you’re looking for information regarding debt relief, why not get in touch with our dedicated team today?

We’ve been helping more than 200,000 Canadians to overcome debt problems since 1999 and we’re able to help you too.

Choosing a reputable agency is critical when you need debt advice, so it’s important to contact an organization you can trust.

With Licensed Insolvency Trustees on hand to provide the help you need; you’ll have peace of mind that you’re being supported by regulated professionals who have the experience and expertise required to manage all forms of debt relief.

Why wait?

Contact Bankruptcy Canada now on 877-879-4770 and take control of your finances today.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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