Consolidated credit solutions in Ontario, Canada, refer to services that provide debt relief through various financial services. The following are five ways to manage your debt more efficiently.
Debt Management Plans
A debt management plan is ideal for residents of Ontario to reduce monthly payments and lower the interest rates on their debts. The process is such that a credit counsellor works with your creditors to establish a suitable payment plan for your financial condition. It provides lower interest rates and reduces monthly payments, leading to fewer creditor calls. Major drawbacks are that your debt will still exist and the plan might require several years to complete. Most importantly, it negatively affects your credit score.
Debt Consolidation Loans
Debt consolidation loans are one of the simplest ways for Ontarians to manage debt. It is one single loan for all your existing debts. This simplifies your multiple debts into one monthly payment. It is usually at a lower interest rate than your credit cards or other unsecured debts, reducing the number of creditors you can manage. However, acquiring a debt consolidation loan requires a good credit score to receive favourable terms. Yet, you might still have to pay a significant interest over time.
Consumer Proposal
This legally binding agreement will help you to settle the loan repayment by paying only what you owe. You can pay the reduced debt in installments over 5 years, providing more flexibility. It puts you in an advantageous position as you can also keep ownership of your assets. A Licensed Insolvency Trustee (LIT) administers this proposal on your behalf and negotiates with your creditors. Then, the LIT will file the determined proposal with the office of the Superintendent of Bankruptcy. Your creditors will have a time of 45 days to accept or reject your proposal. You can still get the tax refund despite filing a consumer proposal. Though there is no limit to how often a consumer proposal can be filed, it affects your credit score. This will be visible in your records for 3 years after the completion of your payment or up to 6 years from the date of filling out your proposal.
Credit Counselling
Credit counselling is a process that is designed to help reduce the debt of an individual or a small business. With the abundance of free consultation services, you can easily access help to guide you with comprehensive financial help. This also allows you to regain economic stability and start investing and saving.
Bankruptcy
Managing debt can be challenging. Every month, you must analyze which debts are to be paid on priority and which ones can be kept for later. The regular calls from collection agents asking to pay for what you owe can take quite a toll on you. In these times, filing for bankruptcy can be a wise decision. Doing this will help you avoid stress, keep some of your assets, and eliminate your eligible debts. Read this blog post to learn about the advantages of filing for bankruptcy.
Get Reliable Consolidated Credit Solutions with F.J. Zielski & Associates Inc.
At F.J. Zielski & Associates Inc., we provide debt relief solutions for Belleville residents who are struggling to manage their debt. Contact us today because, regardless of the nature of your debt, we can provide the debt relief you need.