Kitchener Debt Consolidation Options

Debt Consolidation in Kitchener, ON

Debt Consolidation is a complex process that many people struggle to get through on their own.

Your bank may not be able to offer suitable options for your situation, and the information you find around the web can be tricky to understand, making it extremely difficult for most people to handle debt consolidation their own.

Here at Bankruptcy Canada, we’ve spent the last couple of decades working with a wide range of different clients in Kitchener, Ontario.

Our expert team can help you with challenges like debt consolidation, providing you with all of the advice and support you need along the way.

Before you call in, though, it makes sense to develop an understanding of how this process works.

What Are Your Debt Consolidation Options In Kitchener?

There is a range of debt consolidation options that can work well in Canada.

Some will be better than others, but you may not be eligible for all of them, and this means that you have to assess your current position before you can dive in and take them on.

Kitchener Debt Consolidation Loans

Debt consolidation loans are the most common way to handle a process like this, providing you with the means to move all of your debt into one easily manageable account.

Loans like this are designed to be long-term, and this means that those providing them can afford to offer reasonable interest rates, saving you huge amounts of money compared to payday loans or credit cards.

Debt Management Programs

Debt management programs can be found across Kitchener, with plenty of options to choose from.

This sort of program will take control of your debts, working out agreements with your creditors on your behalf to ensure that you’re paying as little as possible.

While your loans will still be split, you will only have to pay a single lump sum each month, making it far easier to work out how much you need to spend each month.

Unofficial Agreements

Most loan providers only care about one thing; getting their money back.

They often don’t mind having to wait, and many banks and lenders will prefer it if their customer’s loans drag on, as this means that they will take more interest.

As long as you haven’t pushed it too far, you may have the opportunity to talk to your loan provider and work out a payment structure that works better for your finances.

What Are The Alternatives To Debt Consolidation In Kitchener?

Each of the options above will effectively reduce your monthly loan payments to a single sum that will be much easier to manage.

Of course, though, this isn’t the only way to handle debt, and some people may not have the option of consolidation open to them.

It’s worth thinking carefully when you’re assessing these options, as they will all impact your life in different ways.

Filing For Bankruptcy

Filing for bankruptcy may sound like an extreme move to make, but it can often be the best choice for those with mounting debts and no way to pay it off.

Filing for bankruptcy will initiate a stay of proceedings, stopping lawsuits and harassing calls in their tracks, while also freeing you from the existing payments you’re making.

Through a process of assessments and hearings, a new affordable payment plan will be arranged, and your trustee will handle the rest.

Filing A Consumer Proposal

A consumer proposal is a similar process to bankruptcy, though it will have a much smaller impact on the future of your finances.

An agreement will be sent to your creditors, giving you the chance to negotiate the interest you pay and the length of your loan, while also initiated a stay of proceedings.

This option is usually preferable to filing for bankruptcy, though it won’t always be available.

Debt Settlements

While lenders don’t mind waiting for their money, there will always be a limit to their patience.

A debt settlement will involve paying a lump sum to cover everything you owe, wiping your finances clean and giving you a fresh start.

In a lot of cases, you can negotiate yourself into paying less than you actually owe when you go through this, especially when your debt is more than 10 years old.

Of course, though, it might be hard to save up enough for this.

Common Kitchener Debt Consolidation Mistakes

It’s easy to make mistakes when you’re going through a process like debt consolidation.

People will often try to use the wrong types of loans for this, relying on credit cards, payday loans, and overdrafts to cover their debt.

In reality, though, these types of loans can often end up costing you a fortune, while also leaving you in a bad financial position, and this means that they won’t help you at all.

Along with this, people will also look at options like borrowing money from family members.

This won’t come with interest or the threat of lawsuits, but it could put a serious strain on your relationship and make it difficult for you to enjoy happy family life.

Instead, it will make a lot more sense to ask your loved ones for advice and emotional support, ensuring that you keep money out of your relationship.

Getting Debt Consolidation Help From Bankruptcy Canada

Bankruptcy Canada has been working with personal and business debt problems for more than two decades.

We’ve helped many clients to consolidate their debts, and we know what it takes to achieve your financial dreams.

We encourage anyone who is looking to improve their financial situation to get in touch, whether you want to file for bankruptcy or simply figure out a budget that works.