If you live in the Northwest Territories and are deeply in debt, two of your best options for eliminating debt are debt consolidation and debt settlement. Both options will help you pay off your debts, and it’s important you make the best choice based on your situation.
Debt consolidation involves paying off your current debts with one new loan, while at the same time reducing your interest rate (in most cases). You will be left with one payment, making it easier to keep track and make payments on time. Since the interest rate is lower, you can pay down more towards the principal, getting out of debt faster.
In debt settlement, a mediator will negotiate with your creditors to have a portion of your debt written off. In effect, the principal amount that you owe will be lowered, which does not happen under debt consolidation. Your interest rate may also be reduced. The combination of reduced principal and a reduced interest rate will enable you to pay off your debt more quickly than if you were not to enter a debt settlement.
While that obviously sounds better, the drawback of debt settlement is that it will damage your credit. The amount you owe, the amount you can afford to pay, and your long-term goals will all influence which option is best for you.
If you think it’s time to get professional help to work your way out of debt, fill out the online debt relief form for more information on debt solutions in the Northwest Territories.