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If you have multiple debts that have become difficult to keep track of, there are a few different ways to consolidate them into a predictable and manageable monthly payment. Home Equity Loan Also known as taking out a second mortgage, a home equity loan can provide lower interest rates and a way to get a handle on your credit card debt. Line of Credit A line of credit from a bank or credit union can help you pay off high...
If you're feeling overwhelmed by bills, a debt consolidation strategy can help you get organized. Benefits of debt consolidation include: Planning out your finances becomes easier because you only have to make one debt repayment a month. You'll get your debt under control before bankruptcy is the only option. You'll pay off your debt faster by lowering your monthly interest rate and improving your credit over time. High...
A risk to debt consolidation could be premature confidence in your debt situation. You may feel your debt situation is under control, but if you fall back into bad spending habits, you can incur more debts and put yourself at a greater risk. If you are concerned about this, talk to your local Licensed Insolvency Trustee and he or she can come up with a debt repayment plan or recommend credit counseling services to help you pay off your debts effectively....
You can apply for a debt consolidation loan at any financial institution including your local bank, a credit union, or any lender with enough support to finance your loan. If you go with another lender, make sure to provide your monthly budget and a pay stub to show evidence that your income can cover the loan. A co-signer may be required to guarantee your loan. Other documents you may need to bring with you include: Information on assets...
Bankruptcy – A bankruptcy is a structured, formal process that provides a fresh financial start. You’ll be relieved of all debts to unsecured creditors while still retaining select assets. Consumer Proposal – A Consumer Proposal is a flexible process that allows you to negotiate the terms of your repayment to unsecured creditors — including the amount you’ll pay back and the timing of your payments. In addition, you’ll retain all of your assets....
Bankruptcy – If this is your first time filing for bankruptcy, you may be automatically discharged from your debt in as little as 9 months. If your income exceeds a standard guideline set by the government, triggering ‘surplus income’ payments , you would not be eligible for a discharge until 21 months. In the case of a second bankruptcy, these timeframes are extended. Consumer Proposal – A Consumer Proposal cannot extend...
Bankruptcy – Credit Bureaus generally keep information about bankruptcy on record for 6 years for those declaring bankruptcy for the first time. The time period is extended to 14 years for those declaring bankruptcy for the second time. Keep in mind you may already have a poor credit rating if you have missed payments or your debts have been referred to a collection agency. Having a bankruptcy on your credit record does not mean you will be...
