Residents of Prince Edward Island struggle with debt like everywhere else in the country. For those who have had enough and want to work their way out, professional help might be the way to go. Options like Canadian debt consolidation loans and debt settlement programs are two of the most common methods that people use to get control of their finances.
Under consolidation, you take a single loan and pay off your existing debts, then make monthly payments on that one loan. The benefits of this are (usually) reduced interest rate and an easier-to-manage payment. You’ll be less likely to forget a payment (as there’s only one), and since you’re saving on the interest you can pay more on the principal, meaning you’ll be out of debt sooner. As an added bonus, by never missing a payment, you may actually improve your credit rating.
Debt settlement, on the other hand, is particularly designed for those who see no real way to escape the hole of debt they are in. When the amount you owe is too high or when your income is insufficient to pay at least the minimum payments on all your debts, debt settlement offers a way out of your predicament without destroying your credit. Creditors would rather get a portion of the debt you owe repaid than not receive anything at all from you. Debt settlement allows you to settle with your creditors for less than what you actually owe.
Creditors prefer debt settlement to personal bankruptcy because a portion of the loans they made to you is repaid under the settlement, but they get nothing under bankruptcy. The damage to your credit is also less severe under debt settlement. That is why residents should always seek a debt settlement before bankruptcy.
Your situation is unique, and it will take a professional to tell you which debt relief option is best for you. Fill out this online debt relief application for more information and help with Prince Edward Island debt relief services.