BC Debt Consolidation
Consumer debt levels in British Columbia are the highest in Canada. The per capita average was roughly $37,000 as of September 2011, which is about fifty percent higher than the national Canadian average of $25,600. Consumers are feeling the weight of their debt and are looking for ways they can pay it off more quickly.
BC debt consolidation loans are often used to help consumers get their debt under control. Those who choose this method take out one loan to pay off all their consumer debts. Typically, the one payment they have left after consolidation has a lower interest rate than the average interest rate on all their debts prior to consolidation. BC residents, on average, devote 9.4 percent of their disposable income to the interest on their debts alone. Thus, lowering the interest rate through debt consolidation loans frees up a greater portion of a household’s disposable income for other uses.
Debt consolidation BC clearly has many advantages, but debt consolidation is not necessarily the best choice for residents who want to pay down their debt. Lowering the principal along with the interest rate can help you pay off your debt even faster, but under BC debt consolidation, most lenders will not reduce the principal amount that you owe.
A debt settlement program, on the other hand, offers you the ability to lower both your principal and your interest payments. When you negotiate a debt settlement with creditors, you have an excellent chance of actually owing less money than if you were to choose debt consolidation. The drawback to debt settlement is that it negatively affects your credit score (whereas debt consolidation can actually help it once you’re making regular payments).
Fill out this debt relief form and get personalized information on British Columbia debt relief options and find out which option is best for you.
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