Ontario debt consolidation may help to free you from debt when you most need it. You’ve probably heard of consumer proposals, debt consolidation loans, bankruptcy and debt settlement. But before opting for any of them, you must understand them before you begin a program to reduce or eliminate debt. Considering that according to Statics Canada the average Canadian household is spending 6.5% more in Q2 of 2022 on non-mortgage debt just since the same time in 2021, knowing your options to become debt-free is of the utmost importance.
Here is some basic information on Ontario debt consolidation loans. After you have not paid your debts for several months, your creditors will begin the collections process to recover the money you owe.
An Ontario debt consolidation program will help you get your finances under control. Residents will see the average interest rate on their debt reduced in most cases, and by making your single monthly payment on time, you’ll even see your credit score improve. This single payment makes it easier to repay creditors. However, since your principal remains the same, you won’t be accelerating the pay-off process by that much.
Debt settlement is similar, in that you end up with a single monthly payment. Still, if you’re having problems making your payment, the debt settlement program will work to negotiate with creditors to reduce how much you owe. Doing this will mean you’ll be out of debt faster than with a debt consolidation loan, but it will negatively affect your credit more significantly.
Find out more about the benefits of debt consolidation and other debt-relief solutions by filling out this Canadian debt relief form.
Ontario Debt Consolidation is Best For
Of all the debt relief options, consolidating your debt may be the best choice. However, it depends on your specific situation. An Ontario debt consolidation plan is best for individuals who:
- Have several credit card debts and different payment dates
- Would appreciate not getting calls from collectors
- Want to improve their credit scores
- Would rather pay a lower monthly payment
- Could benefit from lower interest rates
- Can handle one monthly payment, versus several
- Want to start building a budget
If you identify with any of the above, consolidation may be your best course of action. However, you must first qualify for a program with an organization.
Considering Ontario debt consolidation services?
Just like there are many other solutions, there are different debt consolidation options too. Think about consolidating your debt with the following solutions:
Pay a visit to your financial institution
Being a member of a bank or credit union may avail you of some of the lowest interest rates available. However, you may have to put one of your assets down as collateral.
Seek Help from an online lender
There are many reputable internet lenders that can grant you a loan with a good interest rate. Just search for “online lenders” and you may be able to find one that fits your needs.
Speak to a non-profit credit counsellor
Sometimes, a specialist truly is the best way to find the help you need and get the ball rolling. A counsellor can review your financial situation and give you recommendations on a suitable and realistic approach.
Other Ontario Debt Solutions to Consider
When you’re ready to master your finances and get out of debt, don’t forget about other possible options. Speaking to one of our trained credit counsellors can give you some insight into each of them below.
Are you ready to learn more about Ontario debt consolidation, alternatives, or money management? Start today.
Looking for Credit Counselling and debt consolidation resources in your City in Ontario: