Lethbridge Debt Settlement Services
When you are struggling with debts that you are finding difficult to pay, you need to be aware of all of your options.
It’s essential to understand what debt settlement choices you have available so that you can make the right decision for your situation.
Rushing into any one option could make your financial situation worse or make things harder on you than they need to be.
We can help you with debt settlement in Lethbridge, Alberta, if you’re looking for the best debt solution to get you out of your current predicament.
Before you make any decisions, be sure to read the information that we have on debt settlement possibilities.
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Credit counselling is one option when you need to find a way to settle your debts.
It isn’t exactly designed to deal with your debts directly, but it does give you the tools that you need to manage your money.
Credit counselling teaches you how to budget and manage your money so that you can get your finances in order now and avoid getting into more financial trouble in the future.
When you have credit counselling, a financial expert will go through your finances with you.
Their advice will be tailored to you so that you receive the best information about how you can manage your money and stay financially healthy.
Credit counselling can be paired with other debt settlement options, such as debt management plans or consumer proposals.
It can help you to understand what other options may be available to you.
Debt consolidation is one way that people might choose to deal with their debts.
Using debt consolidation, you can take multiple debts and turn them into just one debt.
There are several advantages to this, helping you by giving you just one payment that you have to manage.
It’s easier to stay on top of your debt, and you can also save a lot of money in interest by having just one loan to repay.
There are a few ways you could choose to consolidate your debts.
Some people do it with a debt consolidation loan, or others might choose to use a credit card to pay off their debts.
Debt consolidation might not be the right option for everyone.
If you don’t have a good credit rating, you might struggle to get a debt consolidation loan.
It also does not make your debt go away.
You will still owe money, so you need to have the income and assets that will allow you to secure the loan and repay what you owe.
There could be better alternatives if you are struggling to pay your debts.
Debt Management Plans
Another possibility is to have a debt management plan.
This option helps you to create a plan for paying off your debts with the assistance of a credit counsellor.
Credit counsellors work with you and your creditors to consolidate your unsecured debts with the benefit of a significant reduction or a freezing of interest rates.
You will usually pay what you owe over a period of as much as five years.
Each month, you make a payment to your credit counsellor, and they will distribute the money to your creditors.
A debt management plan might be the right choice for you if you are having problems paying your debts, but you want to avoid bankruptcy.
If you can still repay your debts, but you need some help, a reduction in what you owe and a more manageable monthly payment could be useful for you.
A credit counsellor can tell you whether you are eligible for a debt management plan and whether your creditors will accept one, as well as determine how much you can pay each month.
A consumer proposal is intended to offer an alternative to bankruptcy.
It allows you to keep your assets through negotiation with your creditors.
If you are looking for a debt settlement in Lethbridge, a consumer proposal could work for you.
You can work with a Licensed Insolvency Trustee if you think that a consumer proposal could be the option to help you deal with your debt.
By renegotiating with your creditors, you can ensure you only need to repay what you owe.
Usually, you will only repay a percentage of what you pay on terms that you and your creditors agree to.
As soon as you file a consumer proposal, creditors must leave you alone.
A meeting will be called if more than 25% of your creditors request one.
You will make a payment each month, with up to five years to pay.
Unlike a debt management plan, a consumer proposal is a legally binding contract.
Bankruptcy is also an option if you need a Lethbridge debt settlement.
Filing bankruptcy means that your debts will be discharged, with some exceptions.
You will be allowed to keep some of your assets, but some will need to be used to pay your creditors.
A first bankruptcy remains on your credit report for six years, so it’s not the first option that you should consider to help you manage your debts.
However, it could be the right option for you if you have explored other debt settlement options.
To determine if bankruptcy is right for you, you need to speak to a Licensed Insolvency Trustee.
Their job is to explain your financial options for you and ensure bankruptcy is the right choice.
It is also legally required to use a trustee to file bankruptcy.
They help you to submit the paperwork and manage your file for you.
Get started with exploring your Lethbridge debt settlement options for getting in touch with Bankruptcy Canada and finding a trustee to help you.