Debt Consolidation in Peterborough, Ontario
Whether you’re looking for help surrounding Ontario debt consolidation, how the process works or what effect it can on your finances you’ve come to the right place.
In this article, we’ll take you through your debt consolidation in Peterborough options so that you’re always in the know.
Helping you to find the best option for you, all of our debt consolidation advice can be tailored to fit both your priorities and your financial situation.
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What is Debt Consolidation?
When individuals in Peterborough are in debt, they are constantly looking for ways to help relieve this.
Which is where a debt consolidation loan comes in.
A popular choice, this loan helps to pay off both their debts and other liabilities.
All of these debts will be combined into one manageable loan with favorable repayment terms.
These terms within the consolidation agreement make the process easier, as you’ll be able to pay a specific amount of money off each month.
Specifically, these terms could include lower monthly payments, lower interest rates and a long repayment period.
People of all ages look into applying for debt consolidation loans, whether it’s as a way of relieving student debt, credit card debt, etc.
There are several advantages of a consolidation loan, aside from the favorable interest rates:
- Expert advice is available surrounding debt consolidation – so that you’re always aware of the terms and are able to get assistance when you need it;
- You’ll have to make fewer payments each month;
- Your credit score will get a boost;
- You’ll be able to borrow more (they are typically available in sums of $20,000 and above).
Consolidation loans are available at either a secured or an unsecured status.
With secured loans, your assets (whether that be your property or another high-value item) will be collateral for the loan.
With unsecured loans, as they aren’t backed by assets, they tend to have shorter repayment terms and higher interest rates.
Perhaps the most common type of debt consolidation loans is a Consumer Proposal.
Once a certain amount of creditors have agreed to the proposal, you’ll be accepted for this type of loan.
Within the terms of a Consumer Proposal, you can clear unsecured debts, boost your credit score and retain your assets if your balance is $250,000 or less.
When a Debt Consolidation Loan Should Be Considered
- Payments for the loan can be kept up.
- You use it as an opportunity to budget and track your spending.
- There are favorable repayment terms.
However, as with all loans, it’s vital that you research into debt consolidation loans thoroughly, to ensure that you don’t simply escalate your debt to where it’s beyond your control.
Debt consolidation advice is also essential, so that you’re never in the dark.
Other Ontario Debt Consolidation Options
With bankruptcy in Peterborough, Ontario at an all-time high, the leniency surrounding Ontario bankruptcy laws have been reviewed.
Lowering interest payments and making consolidation loans more attainable for residents, the future of bankruptcy could be changing.
However, in the meantime, it’s important to recognize what your debt consolidation in Peterborough options are so that you’re in the best position possible.
- Credit Cards– you could alternatively get a new credit card and consolidate your previous payments onto there with low-interest rates.
- Student Loan Programs – the federal government has created several consolidation options for those with student loans.
- Home Equity Lines of Credit – a form of consolidation, this is favorable as you’re able to take off the interest if you’ve effectively itemized your deductions.
How Bankruptcy Canada Can Help
If you’re looking for Ontario Debt Consolidation advice, Bankruptcy Canada is your first port of call every time.
With licensed trustees throughout Peterborough, we’re here to give you knowledgeable and expert advice.
Simply get in contact with us today.