Debt Consolidation in Canada
If you’re looking for information on debt consolidation in Canada you may have found that there is a lot of misleading information regarding the subject. You will also notice that there are a lot of programs available to you. The question you may have is what program is the best for you? Unfortunately every individual’s situation is unique so it is impossible for a web page to tell you what you should do. If you need help with your debt the best thing you could do is pick up the phone and call a counsellor and as you may have guessed, we have counsellors standing by to answer all of your questions. However, if you’re not comfortable talking to someone over the phone here is a brief explanation of the 4 most common options available to you.
First and foremost, the best option you have is to try to consolidate your debt with your bank. This option will have the least amount of impact on your credit bureau and will allow you to pay your debt back with one monthly payment. The problem with this is the banks are tightening up the reins on debt consolidation loans and they seldom give you enough to pay all of your debt back. This, as you can see, doesn’t solve the problem.
Next, you can always continue to pay the debt off yourself. The only way this is going to be beneficial to you is if you are able to make payments that are larger than your minimum payments. Simply making your minimum monthly payments is not going to help you with your credit. On average, it takes 15 years to pay your debt back by simply making the minimum payments to your credit cards as the majority of your payment goes to interest. Keep in mind that this only works if you do not use the credit cards for additional purchases.
If the first two options don’t seem to be working for you a credit counselling program may be the solution. A credit counselling program is a voluntary repayment program that can see your debt eliminated with a single payment at a reduced interest rate. These programs work great for individuals that cannot qualify for debt consolidation loans and cannot make more than their minimum payments. It also works great for people who cannot maintain their minimum monthly payments, and or, have had their accounts go to collections. For more information about this program you can call us toll free 1-866-284-2519 or simply fill out the contact form on the left hand side of this page.
Lastly, if none of the programs above work for you there are two options available under the bankruptcy act. The first is a consumer proposal and the second would be declaring bankruptcy. We always recommend a consumer proposal over bankruptcy but both programs are there for you. For more information on these programs please contact a bankruptcy trustee in your local area.
