Looking for solutions for your debts?

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Imagine that you’ve just lost your job. Maybe you have a family to feed. Maybe you’re taking care of sick parents. Maybe you’ve gotten very ill and don’t have health insurance. You have little saved but a lot of debt. To survive this crisis, first you should check for alternative ways you overcome this situation.
Debt Settlements is an alternative to bankruptcy, consumer proposals,credit counselling and other debt management programs. It involves negotiating with your creditors for a a lower lump sum payment than what is actually owed.

As a lump sum payment is required, this option is not viable for most people who are experiencing financial hardship. However, there are other debt relief options that offer a better solution such as a debt management program.

Our Credit Counsellors will analyze your financial budget and they will advise you on how best to manage your personal finances and the smart way to pay your debts as well as credit cards.
The consolidation of debts is a process that lets you unify all your debts into one. Therefore, you will have one monthly payment to your debts instead of several.

Having one low monthly payment is beneficial as the interest in a consolidation loan is usually lower than unsecured debts such as personal loans, credit cards, etc. Meaning that you are saving money by having a lower interest rate potentially paying your debt faster.

To qualify for a debt  consolidation it is required that you give some form of collateral. This can be a second mortgage on your house, or a lien against your car, There are also companies that provide loans for consolidation, but be very careful if you take this route.

Refinancing refers to the replacement of an existing debt obligation with another debt obligation under different terms.

 

A loan or debt might be refinanced for many reasons.

1. To take advantage of a better interest rate (a reduced monthly payment or a reduced term)

2. To consolidate other debts into one loan (a potentially longer/shorter term contingent on interest rate differential and fees)

3. To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)

4. To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan)

5. To free up cash (often for a longer term, contingent on interest rate differential and fees)

A common form of refinancing is mortgage refinancing which you have to own a property to qualify for a mortgage refinancing.

 

If you are interested in refinancing your mortgage please click here.

What is a Consumer Proposal?

A Consumer Proposal is an arrangement ,that is negotiated through a consumer proposal administrator, with your creditors.  The total amount debt is reduced by up to 70% and all interest charges stop the day the consumer proposal is filed.

Not only do you settle your debts and avoid bankruptcy, but all other actions from creditors are stopped once the Consumer Proposal is filed. Imagine no more harassing phone calls and no more wage garnishment.

What is Bankruptcy?

Bankruptcy is a legal process to instantly stop all legal and court fees that have been put in place by your creditors, that includes goods and wage garnishments, lawsuits and frightening calls by collection debt agencies, giving you the opportunity to be free of your debts and start fresh.

This process is accompanied by counseling sessions to help you and teach you to keep control of your finances. In most cases, you can keep your property, such as your home and car.

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