Oshawa Debt Consolidation Options
Debt Consolidation in Oshawa, ON
If you’re in Oshawa and in need of debt advice, know that you aren’t alone.
According to debt statistics, 14.9% of the average Canadian household’s income goes towards making debt payments, and it is a rising problem.
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While you’re in debt, you will:
- Be removed from the chances of financial freedom;
- Have less money to spend on your essential and non-essential expenses;
- Have less money to go into your savings;
- Potentially experience stress when trying to meet the demands of your creditors.
Thankfully, it is possible to get out of debt, no matter how much money you currently owe, and here at Bankruptcy Canada, our licensed team of professionals are on hand to help you.
When you arrange a free consultation with us, we will assess your debt situation, discuss the way forwards, and if you decide to continue with our help, we will put forward a plan of action to eliminate your debts forever.
Now, there are a number of debt relief options open to you, and of these, you might decide debt consolidation is the right way forward.
What Is Debt Consolidation?
Simply put, if you are currently beholden to a number of creditors, you can reduce your debt burden by consolidating your various loans into one easier-to-pay-and-manage loan repayment.
The interest rate will be lowered, you will only have one creditor to deal with, and the chances of you becoming financially free sooner rather than later will be escalated.
For many people, debt consolidation is the best way to escape debt, so you should certainly consider the option.
Summary of the benefits:
- Turn multiple payments into a reduced single payment;
- A repayment plan with lower interest rates;
- Less stress when managing your debt;
- The chance to clear your debts quickly.
So, if you are bogged down by loan repayments, multiple creditors, and debts that are spiralling out of control, make life easier for yourself and consider debt consolidation.
Debt Consolidation Options
When choosing to consolidate your debts, there are a number of options open to you.
Some are better than others, so choose carefully.
For example, you might decide to remortgage your home and consolidate your debts into your mortgage.
This can be a good idea, although you do need to remember that your house could be at risk if you later fail to make your repayments.
You could also take out a new credit card and consolidate your debts onto it.
This is fine, in theory, but if you choose a credit card with a high-interest rate, you might only make life harder for yourself.
You might also be tempted to only pay off the minimum on the card each month, meaning it will take you a lot longer to clear your debt, even though it has become one payment.
Another option is a debt consolidation loan.
As you can see in the linked article, there are pros and cons to this method.
On the plus side, you will be able to reduce your payments into one that s easier to pay and manage, and you will say goodbye to the other creditors that you owed money to.
You will also have an end date when applying for a debt consolidation loan, as a repayment plan will be put in place to cover a fixed period.
All good, right?
Yes, but on the negative side, if you have poor spending habits and struggle with budgeting, you could still default on the loan.
The payments you have to make might also be higher than you can reasonably afford.
A better option might be a consumer proposal.
By working with one of our licensed trustees, you will be able to reduce your loan payments through a repayment plan we will work out with your creditors.
If they are agreeable to the proposal we put forward, you will pay less money each month, have a fixed period of time before your debt ends, and have the opportunity to eliminate your debt without the need to pay back every last dollar.
Many creditors are happy to consider a consumer proposal as it means they will still get some money from you, even if you don’t pay back everything you owe.
It’s also advantageous for you, as you will get to pay your debt off faster and with reduced stress.
What Option Is Right For You?
There are pros and cons to every debt consolidation option, so we appreciate how difficult it can be for you to make the right decision.
However, you aren’t alone.
At Bankruptcy Canada, our team of regulated, licensed, and experienced professionals will guide you through the choices that are open to you.
We will provide you with clarity and reassurance from the start, as we will put your mind at ease if you’re stressed about your debts, and we will clearly explain the debt relief options that are right for your particular situation.
At a consultation session, you can also ask us any questions you have, and we will encourage you to be honest with us.
People get into debt for all kinds of reasons, and with over 20 years of experience, we have heard most of them.
Let us know your situation so we can directly give you the help you need to manage the debts that are overwhelming you.
Find Out More Today
If you’re in need of Oshawa debt consolidation advice, get in touch with us today.
The sooner you get in touch with us, the sooner you will be clear of debt, so don’t delay.
With the professional help of our team of experts, you will be well on the road marked debt recovery, and you will then be able to start afresh and enjoy a life free of the burdens that debt places on you.