When researchers try to get a good sense of the financial state of Alberta’s residents, there are a variety of figures to consult. As with the rest of Canada, the picture these figures paint is a mixed one that includes encouraging signs as well as many discouraging facts.
For example, recent research shows that Albertans are actually saving money at a rate greater than the rest of Canada. On the other hand, in a study published in June 2011, forty-three percent of the province’s residents reported that their total debt increased during the preceding year. Households that have increased their debt become weighed down with doubts regarding their ability to pay what they owe. The increase in debt also makes it more likely that the rate of personal bankruptcy will increase in the province.
Those facing a mountain of consumer debt have several options to help them reduce their debt and get their finances under control. Debt consolidation is one of these possibilities, and many households are using debt consolidation loans to lower their average interest rate and pay off debt faster. By consolidating debts, residents can make a single payment per month. Single payments are easier to manage and often help build your credit back up after it’s been damaged.
If debt consolidation isn’t good enough, a trustee can put together a consumer proposal to work out principal reductions and a payment plan with your creditors. The rules for such proposals are detailed and stringent, and that is why many people prefer debt settlement instead.
Unlike Alberta debt consolidation loans, debt settlement will reduce both your principal and your interest. The drawback to debt settlement is that it will affect your credit rating more than consolidation. Every strategy has its advantages and drawbacks. Fill out our online debt relief form to learn about the Alberta debt relief program that will save you the most money and get you out of debt faster.
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