Grande Prairie Debt Consolidation Help
Debt Consolidation in Grande Prairie, AB
Never assume you have to live with your debts forever.
While it might sometimes seem as if there is no way out of the debt hole you have fallen into, there are, in fact, a number of debt solutions available to you.
When you are finally out of debt, you will:
- Have the opportunity to start again financially;
- Have no further need to worry about the demands of your creditors;
- Make more savings in your life;
- Have the opportunity to spend money on the things you need and want in life.
Getting out of debt needs to be your priority then, as you will then experience the benefits we have just summarised.
Here at Bankruptcy Canada, we are here to help you on your road towards financial freedom.
Our licensed, regulated, and experienced trustees have been helping Canadians for years, so when it comes to your personal situation, you can be assured of our wisdom and support.
When considering the debt solutions open to you, you might want to consider debt consolidation.
There are other options, and we will discuss these with you, but let’s focus on this one aspect of debt relief to give you a better understanding.
What Is Debt Consolidation?
The process of debt consolidation is simple.
Rather than deal with multiple loans, you move your existing debts to one place.
This might be through a debt consolidation loan or a second mortgage, for example.
Typically, you will be able to lower your minimum monthly payments this way, and you should benefit from lower rates of interest.
What Are The Benefits Of Debt Consolidation?
There are a number of benefits available to you.
- Turn multiple payments into one single payment. This will make your debt easier to manage.
- Save money through lower interest rates. The less interest you have to pay, the better, as you will make bigger inroads into repaying the money you borrowed.
- Better budgeting. With only one loan to worry about, you should find it easier to manage your finances and budget for your repayments.
- Only one creditor. With only one creditor to deal with, you will have fewer phone calls, emails, and letters reminding you of your financial commitments to them.
- An end date to your debt. Payments are made over a fixed period, so you always have an end in sight or, as the saying goes, a light at the end of the tunnel!
These are just some of the benefits of debt consolidation, and as we’re sure you agree, they should make your life easier than it might be at the moment.
Debt Consolidation Options
There are a number of options open to you, although some are better than others.
Debt Consolidation Loans: Many lenders will offer this service to you, although if your credit rating is low, your application might get turned down. Still, if you are eligible, you will benefit from smaller monthly payments, reduced interest rates, and a fixed payment period. Needless to say, if you agree to larger payments each month, you will pay the loan off sooner.
Remortgaging: This might be something you do anyway, regardless of debt, as you might get a fairer rate of interest for your mortgage. You might also consider the option when consolidating your debts, although you do need to remember that your home could be at risk if you don’t meet your new repayment plan.
Credit card: To be honest, this is one kind of debt consolidation that is best avoided. While you might find a card with low-interest rates, there are often hidden clauses attached which could see those interest rates rise. You might also be tempted to use your credit card for unnecessary purchases, or you might decide to only pay back the minimum each month, so in both such cases, you won’t be helping your cause any.
Debt Management Support: A debt management program is designed to reduce your monthly repayment, and you will have the personal support of a third party debt professional to manage your debts for you. Talk to one of our team to find out more.
From the options listed thus far, a debt management program might be considered the safest option, especially if you struggle to manage the money you have effectively.
Other popular options include:
Consumer Proposal: With the help of a licensed trustee, you will be able to make an agreement with your creditor to reduce your debt. Not only will you benefit from an easier repayment structure, but you will also benefit from a stay of proceedings, as legally, your creditors won’t be able to harass you for payments. You will have to agree to a payment plan and keep up with those payments, but after assessing your situation, our team of experts will make sure that the payment plan is one that suits your budget.
Debt Settlement: If you’re able to pay off part of your debt in one lump sum, the creditor might write off your debt in its entirety. This isn’t always possible for some people, and not every creditor will agree to this, but a debt expert can discuss the option with you if you’re interested in knowing more.
Which option is right for you? Well, that depends on your personal situation, the amount of money you can comfortably pay back, and who your creditors are.
After meeting with us, you will have a clearer idea of what you might want to do next, as we will look at your unique situation and discuss the relevant options with you.
Get In Touch
If you are considering debt consolidation in Grand Prairie, get in touch with us today.
The sooner you do, the sooner you will start your journey towards a debt-free life.
We look forward to meeting you and helping you on your journey.