Are you over-indebted and looking for ways to reduce your debt burden? Debt consolidation is one of the options available to you for reduce your debt.
Debt consolidation is a loan from your financial institution. The principle is simple. This loan authorizes the repayment of your creditors at a single monthly payment to be repaid over 5 years. Your debts are therefore all grouped into a single debt.
In addition, the interest rate of your only debt is relatively lower than those on your credit cards. This simplifies everything, because you're in the driver's seat. ability to repay this debt. If this does not apply to your situation, other options are available to you such as consumer proposal or the personal bankruptcy.
In a nutshell debt consolidation allows you to :
- Significantly reduce your monthly payments.
- Reduce interest costs.
- Manage your debts more simply by reducing them into a single debt.
- Improve your credit rating.
Is debt consolidation the right solution for my financial situation?
Sometimes it's hard to know which solutions are best for your specific financial situation. Some are better than others. To point you in the right direction best optionthe debt consolidation is a good choice if :
- You have difficulty with your budget at the end of each month.
- Your income is irregular or have decreased.
- In your opinion your interest costs are far too high.
If this situation is similar to yours, you would certainly need debt consolidation to improve your financial health.
Please note that financial institutions do not accept all loan applications for debt consolidation. To support your application, you must :
- An acceptable credit rating.
- Earn sufficient income.
- Be able to repay your loan to 100% every month.
We recommend that youact quickly to avoid damaging your credit rating, otherwise you risk considerably reducing your chances of obtaining a debt consolidation loan.
You've been refused debt consolidation. What can you do?
For a number of reasons, your financial institution can refuse debt consolidation. Don't panic, other solutions are available. The consumer proposal is an effective one. With a consumer proposal, you can :
- Do a single monthly payment with no interest.
- Do negotiate the amount of your debts by a trustee, and therefore reduce your total debt according to your ability to pay.
Many people choose the consumer proposal after taking out a debt consolidation loan. Indeed, debt consolidation can increase the level of indebtedness of people who are unable to make their single monthly payment. They are then forced to turn to a consumer proposal or the personal bankruptcy according to their financial health.
We recommend that you call on N. Séguin's advisors who will help you choose the best solutions for your personal situation. Sharing your situation and getting professional advice will save you a lot of aggravation and help you make the right choices.
