Information on Consolidating Your Debts
Debt consolidation advice can help you manage outstanding payments and take control of your finances.
If you’re in debt and you need help, this guide will point you in the right direction.
What is debt consolidation?
Debt consolidation is an effective solution for many Canadians who are struggling to keep a firm grip on their finances.
If you owe multiple companies or you’re falling behind with credit card, loan or rent or mortgage payments, consolidating your debts could help you to settle debts and prevent the situation from getting worse.
The aim of debt consolidation is to package your debts into one payment.
By borrowing a sum of money, you can pay off multiple debts and then start afresh with one single repayment per month.
Debt consolidation is beneficial because it enables you to wipe the slate clean, it eliminates the risk of creditors contacting you and garnering wages and it often provides access to preferential interest rates.
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How to find debt consolidation advice
According to credit agency, Equifax, average household debt in Canada rose by almost 3% in 2019.
Thousands of people across Canada are struggling with debt.
Surveys suggest that money worries are the most significant stressor for over 40% of adults.
If you’re in debt, and you’re anxious about missing payments or keeping a roof over your head, there is help available.
One of the best things you can do to deal with debt is to contact credit counsellors.
Credit counsellors offer an array of services and they can help you determine the most effective ways of clearing debt, as well as offering advice to help you manage spending in the future.
Many people assume that there is no way of finding a light at the end of the tunnel when their debts are spiralling, but this isn’t the case.
Seeking help can provide clarity, and you’ll soon realise that there are steps you can take to build a brighter, better future.
It’s also possible to seek help from your bank or credit union if you are thinking about taking out a debt consolidation loan.
If the loan application is rejected, don’t panic.
This doesn’t mean that there isn’t a solution for you.
If you’re having trouble getting a loan to pay off your debts, or you have any queries or questions about debt management, we’re here to help.
What if I can’t get a debt consolidation loan?
If debt consolidation is not a viable option for you, and you can’t get a loan, don’t give up hope.
There are alternative measures that can help people with substantial debts.
One option that may be recommended is a consumer proposal.
This is a legally-binding agreement, which outlines a payment plan to cover outstanding debts and pay creditors a set amount over a specified time period.
If you have had an application for a debt consolidation loan turned down, the best thing to do is to contact reputable advisors.
Debt consolidation advice can help you clear debts and improve your financial situation.
If you need help, or you’d like to find out if debt consolidation is suitable for you, don’t hesitate to give us a call.