Not all debt is created equal. While some debt is beneficial, other debt may cause financial ruin. Debt that is secured by an asset that rises in value is generally considered good debt. An example of this would be the mortgage on your primary residence. On the other hand, unsecured debt that has no assets to back it up is some of the worst debt you can have. Most consumer debt falls into this category.
Newfoundland residents have not been immune to the rising problem of consumer debt in recent years. Statistics Canada shows that, in Q2 of 2022, the average Newfoundlander owes $45,456 in non-mortgage debt. Also, the Debt Service Ratio, which indicates how much of a person’s disposable income goes towards debt, sits at 4.32%. That means well over 4% of the money not allocated to necessities is going toward paying off debt.
It is wise to get personal debt under control as soon as possible so that the interest rate does not consume all of your income and savings. If you are deeply in debt and do not see any hope of escaping it, debt settlement will likely help. Enrolling in a debt settlement program is a popular and affordable way to put yourself back into a positive financial position. Through debt settlement in Newfoundland, the amount of principal that you owe is reduced, making it much easier to pay back your creditors.
Newfoundland debt settlement is a legal process that does not hurt your credit as much as bankruptcy does. In the process, most creditors will agree to write off a portion of your debt if you make a lump sum payment to settle the rest of it. However, if you do not have a lump sum to pay the portion that your creditors do not write off, you can often agree to a payment plan with your creditors when you get professional help.
You should always seek expert debt relief help to get the best agreement with your creditors. Fill out the online debt relief form for professional assistance with debt solutions in Newfoundland.