Debt.ca is Canada’s Debt Relief Provider
When faced with a mountain of consumer debt, it is quite easy to become overwhelmed and to believe that you will never be able to pay off your creditors. The high interest rates associated with consumer debts, late fees for those who are behind on their payments, and much more can seem to conspire against your attempts to become debt free. Fortunately, Canadian law allows for Canadian residents to reduce their debt and avoid bankruptcy through what is known as a debt settlement.
Under a debt settlement, Canada debtors enter into negotiations with their creditors to settle debts for pennies on the dollar. Creditors agree to write off the debt as paid but not for the amount that was actually incurred. In fact, they often settle debts for as little as forty cents on the dollar. For example, a debtor who owes $15,000 to his or her creditors can often get these creditors to consider the debt paid in full for only $6,000. Often, the creditors demand a lump sum payment, but it is sometimes possible to work out a payment plan for the debt that has been reduced.
Because it is often difficult to negotiate a good debt settlement, Canada debtors should never try to work with their creditors by themselves. A good debt settlement company is able to negotiate with your creditors on your behalf and get the best outcome possible, enabling you to become debt free quickly. Fill out the form above for a free debt consultation. We will explain all of your options and find a solution that fits within your budget. It is completely free and there is absolutely no obligation!
What About Debt Consolidation?
Individuals and couples who have several unsecured debts can easily fall behind on their payments because there is so much to remember. Having ten different debts, for example, means that there are ten different creditors that must be paid and ten different due dates for payments each month. Those who forget just one of these can get into a lot of trouble with late fees, higher interest rates and so forth.
Moreover, those who owe money to several creditors are likely paying several different interest rates. This can result in a total average interest rate that is quite high, inhibiting debtors’ ability to pay off unsecured debts quickly. Reducing this average rate and the number of creditors can help debtors get their debt under control. That is why so many Canadian residents take out debt consolidation loans.
In debt consolidation, Canada residents take out one loan to pay off all their creditors. This makes debt far more manageable, as Canadians who go through the debt consolidation process are left with but one payment to make each month. In debt consolidation, the average interest rate is lowered, thereby saving consumers money over time.
However, unlike a debt consolidation loan, debt settlement actually reduces the principal as well as the interest rate. This saves consumers even more money! Please fill out the form on this page today for a free debt consultation. You have nothing to lose!
Consumer Credit Counselling in Canada
Are you able to manage your monthly debt payments? Do you see yourself ever paying off all your creditors and becoming debt free? If the answer to either of these questions is no, then you can definitely benefit from some quality financial counsel. In Canada, such advice is available through credit counselling.
Through the process of credit counselling, Canada residents will accomplish several objectives. First, you will get a thorough overview of your income and expenses, which can help you find ways to keep more of your money each month after you pay your bills. There are many ways to save money that you may not be able to see, but an outsider can point out what you are missing.
Second, those who use a credit counselling service will also learn how to budget their money better. Without a solid budget, you will likely go right back into debt even if you pay off all your current creditors. Financial counseling will help you avoid relapsing into old habits by teaching you how to formulate and live by a reasonable budget.
Credit counsellors will help you get your debt under control by negotiating with your creditors to reduce your interest rates. However, depending on your current interest rates, credit counsellors may or may not save you money on debt repayments. It is important that Canadians know that there are significant drawbacks to credit counselling services. Enrolling in a credit counselling program will place a mark on your credit that can make creditors more hesitant to loan you money in the near future. Also, a debt counselling program will not reduce the actual principal you owe. Our debt relief program, however, does not have these problems. It is not noted on your credit report that you are in a debt relief program, and you save money as your principal is reduced.
Try to Avoid a Consumer Proposal
A consumer proposal is quite similar to bankruptcy. A licensed bankruptcy trustee, on behalf of the debtor, draws up this proposal, which consolidates all outstanding consumer debts into one loan. Often, the total amount that the debtor owes is reduced and can save the debtor a good deal of money, however, it comes at a cost. Consumer proposals are a public record. Like a bankruptcy, consumer proposals are handled through the bankruptcy courts. A bankruptcy trustee is required to pay your creditors as much as possible which is not in your best interest. There are also situations that can force you to pay back 100% of what you owe or even force you to file a bankruptcy in which you will have to forfeit all of your non-exempt assets.
When it comes to the consumer proposal, Canada has some significant laws that must be followed. Properly licensed bankruptcy trustees are also required to draw up the agreement between the debtor and his or her creditors.
The money-saving benefits of these proposals are clearly self-evident, but that does not mean a proposal is the best option for Canadian residents to settle their debt. Debt settlement is similar to a consumer proposal, but is not public record. In some cases a debt settlement program may reduce your principal more than a proposal will and there won’t be a public record, which makes it the best option for most people who are in debt. Again bankruptcy trustees are required by law to pay your creditors back as much as possible while our program represents only you to get you the most savings possible. Fill out the form on this page to get a free debt consultation, which will help you understand if debt settlement is right for you.
Should You Declare Bankruptcy?
Despite negotiating with creditors, working extra jobs and otherwise doing your very best, you may find yourself with an unbearable load of consumer debt. Perhaps you think that you will never pay it off even if you were given several lifetimes in which to work and make payments. In these circumstances, filing for bankruptcy can seem attractive.
Due to the freedom offered in bankruptcy, Canada debtors are likely to consider this option of last resort to be the solution to their debt problems. After all, bankruptcy erases your consumer debts, stops debt collectors from harassing you, and prevents wage garnishing and future legal action. These are all pluses, but are they enough to tip the scales decidedly in favor of being declared bankrupt?
For most people, the answer to this question is no. A bankrupt person’s freedoms come at a high price. Bankrupt individuals must keep detailed records of all their income and expenses for the courts while they remain bankrupt. This is quite burdensome.
But when it comes to bankruptcy, Canadian residents who have chosen to be declared bankrupt face more significant problems. Their credit scores will be ruined for several years, and they may have to give up some personal possessions in the process of being declared bankrupt.
Is there any other way to get out from under your debt? The answer is yes. Through our debt relief program, you can have your debts settled for pennies on the dollar, allowing you to pay off what you owe without destroying your credit. Fill out the form on this page for a free debt consultation!