Debt Consolidation in Ontario, ON
Living with mounting debt can put a huge amount of strain on a person.
Calls from collection agencies, failed credit checks, and a range of other problems will start to impact you if you find yourself in this position.
Of course, though, getting out of debt can feel almost impossible when you’re first starting out.
Most people don’t have the experience to handle this sort of process effectively, but you’re not alone, and Bankruptcy Canada is here to help at every step.
Debt consolidation provides an excellent way to start making positive changes with your debt, but how exactly does this sort of approach work?
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What Is Debt Consolidation?
In simple terms, debt consolidation is the process of moving a range of debt sources into a single loan.
There are loans available that are specifically designed for this process, offering fair interest rates and the promise that you won’t be endlessly harassed for missing a single payment.
Before diving into how you should go about approaching debt consolidation, though, it makes sense to take a look at the benefits and reasoning behind an approach like this.
Why Choose Debt Consolidation?
End The Harassment
There are few things worse than having more than one collection agency calling you for their money.
People often feel very stressed when they are in this position, but debt consolidation can often be one of the fastest ways to escape this sort of torment.
With your debt in one place, you won’t have to deal with more than one creditor.
Make Payments More Manageable
With loans, credit cards, and other types of debt to pay, many people find themselves overwhelmed by the money leaving their accounts each month.
Consolidating your debt will make it much easier to keep track of your payments, in turn giving you the chance to keep on top of them.
There are few things worse than feeling like your debt is spiralling out of control and having little to do about it.
Save Money On Interest
Debt consolidation loans are designed to offer fair interest rates, and will often be much cheaper than payday loans or credit cards.
This will save a lot of money, lowering the amount of interest you pay across the loans you’ve taken out.
Having multiple loans will almost always cost more than a single larger one, even when the smaller loans have lower interest rates.
Debt consolidation is becoming an increasingly common way to handle financial issues.
More and more companies are offering loans that are designed for this job, but we understand that it isn’t always easy to make the right decisions when you go through a process like this.
Bankruptcy Canada can help with your debt consolidation, providing you with support and advice along the way.
How Do You Consolidate Debt?
Most people have never gone through the process of consolidating debt before, and this makes it challenging when you’re approaching it for yourself.
There are several steps in this process, and each of them will determine the time it takes for you to pay off your debt.
We’ve outlined the basic process below, but you can get in touch with our friendly team if you have any questions regarding debt consolidation.
Choose The Right Loan
Choosing a loan to work with your consolidation effort will be the most crucial part of this process.
There are a number of different options that can be used for this, though the best tend to be specialized debt consolidation loans, as these are designed to be used for this purpose.
If you can’t get a loan like this, you could also consider the option of remortgaging your home or looking for a debt support scheme that will make it easier to pay what you owe.
Payday loans, credit cards, and overdrafts aren’t suitable for debt consolidation.
Each of these options is designed to be short-term and will come with high-interest rates, and the providers offering them won’t want people to use them for debt consolidation.
This can leave you in a tight spot if you decide to use these loans like this.
Create A Budget & Start Paying
It always makes sense to hit the ground running with a process like this, and you should be looking to start paying back your debt as soon as it’s consolidated.
Bankruptcy Canada can help you to assess your finances and build a budget that reflects your financial situation.
You will have to limit your spending to make this work, but we can give you all of the support you need as you go through this.
Find Financial Freedom
While debt consolidation is a good way to eliminate your debt, it will still be quite a long process.
Your life will change quite a bit as you go through this, and you will get better and better at working with your money to avoid debt.
This will all get much easier once you’ve managed to get to the end of it.
Your credit rating will improve, you will have more resources available to you, and you won’t have to deal with the pressure that comes from collection agencies anymore.
Here at Bankruptcy Canada, we’ve been working for more than two decades to support Ontario’s residents with their financial problems.
Our dedicated team is always happy to offer confidential and obligation-free advice, and we encourage anyone who is worried about their debt to get in touch.
You can give us a call at 1-877-879-4770 or send an email to Gordon@BankruptcyCanada.com, and we’ll do everything we can to help you to achieve financial freedom.