Payday Loan Debt Relief in Canada
There are many households all over Canada who struggle with the rising cost of living.
When day-to-day essentials like housing, utilities and food get more expensive but their wages don’t rise at a commensurate rate, Canadian households find it much harder to save and budget effectively.
As such, they have no recourse but to turn to lines of credit such as loans and credit cards.
The more credit they use, the more debts they accumulate.
And the more debts they accumulate, the more their household income is subsumed by debt.
As such, when unforeseen costs arrive, and lines of credit get maxed out, Canadians find themselves leaning on short-term high-interest Payday Loans.
The trouble is, however, that…
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Payday Loans do far more harm than good
Payday Loans promise easy access to fast cash.
But this quick fix comes at a heavy cost.
These loans are extremely high in interest and this can make the repayments hefty and long-drawn-out.
The fact that so many Canadians have become dependent on these short term loans may be why the average Canadian household spends 7.3% of their gross income on interest charges alone.
The fast cash fix offered by Payday Loans is offset by a prolonged stranglehold on your cash flow which can make it harder and harder to escape your debts and manage your budget.
Cash Advances on credit cards are similarly problematic, and will often come at a much higher rate of interest than you’re already paying for purchases on the very same card.
It’s time to break this cycle by changing your perspective on your debts.
Take back control of your finances
Since 1999 we’ve been helping people break the cycle of debt and offering people from all walks of life Payday Loan help in Canada.
We help people to understand all of their options so that they can escape their debts, regain their disposable income and take back control of their finances.
The key to escaping the trap of debt is shifting your focus away from getting quick access to more money (and thus taking on more debt) and towards freeing up more of the money that you’re already making.
There are numerous ways in which you can better organise your debts, free up your income and stop wasting a fortune on interest.
Let’s take a look…
Debt Consolidation Loans
Debts can quickly spiral out of your control when you have to juggle many different loans and credit cards with different rates of interest and repayments coming out of your bank account at different times.
The more debts you accumulate, the more untenable budgeting and saving can become.
Debt Consolidation Loans can make your debt more manageable, free up more of your monthly income, drive down interest spending and help you to pay your debts off faster.
Debt Management Plans
If your credit or outstanding debts prohibit you from getting a Debt Consolidation Loan, you may benefit from a Debt Management Plan.
This works in a similar way, and can consolidate all your existing debts into a single manageable monthly payment.
Credit Counsellors can set up a Debt Management Plan on your behalf, liaising with your creditors and helping you to drive down the amount you spend on interest.
It’s worth noting, however, that Debt Management Plans are entered into voluntarily by creditors and they are not legally obliged to adhere to them.
This measure cannot be used for government debts like Student Loans or money owed to the CRA.
A Consumer Proposal is half-way between a Debt Management Plan and Personal Bankruptcy and carried a range of benefits.
You cannot apply for a Consumer Proposal yourself.
A Licensed Insolvency Trustee needs to act as a Proposal Administrator on your behalf.
They will take a look at your finances, your circumstances and your assets and work out what you can realistically pay back to your creditors.
This may involve the forgiveness of up to 80% of your current principal.
Your Proposal Administrator then puts the proposal to your creditors and if a 51% majority vote in favour of it, all your creditors are bound by its conditions, whether they agreed to them or not.
A Consumer Proposal can get you 100% debt-free in as little as 3-5 years.
Finally, if it looks like there’s no way you can repay your debts, even with a consumer proposal, a Licensed Insolvency Trustee may recommend declaring Personal Bankruptcy.
This can result in your debts being automatically discharged and you won’t even have to go to court if you meet your obligations within the first 9 months.
The Bankruptcy process even includes 2 counselling sessions which will teach you the practical skills you need to rectify your household finances so that you’ll never need to rely on credit again.
Explore your options and take positive action
When you need Payday Loan help, there are a number of viable options that can free up your income so you can better manage your budget, stop wasting money on interest and chart an easier path to freedom from your debts.
However, knowing which option best suits your needs isn’t always easy.
Since we first opened our doors, we’ve helped over 100,000 Canadians just like you to liberate themselves from their debts and lay the foundations for a better financial future.
Unlike most Non-Profit Credit Counselling services, we can help you to find a Licensed Insolvency Trustee near you who can let you know all of the options available to you.
And when you know all of your options, you’re much better placed to make an informed decision that will bring lasting benefits for your household finances.
Call us today on (877)879-4770 for a risk-free, zero-obligation and 100% confidential callback.
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?
How to File for Bankruptcy
What is Bankruptcy?
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?