Debt Consolidation Process in Canada | Articles Study

Many Canadians find it difficult trying to keep up with all of their debts. Mortgages, credit cards, personal loans, car leases, can all be overwhelming. However, there are solutions to getting debt under control. One such solution is debt consolidation. Debt consolidation has helped many Canadians pay off their outstanding debt while avoiding bankruptcy.

When you take part in a debt consolidation program from a credit counselling or debt management agency, you are acquiring an unsecured debt consolidation to pay your off outstanding bills. You are in essence, replacing multiple outstanding debts with one low interest payment paid in monthly instalments to a debt councillor until the load is paid off. Below is a general guide to the debt consolidation process in Canada:

Initial Consultation: You will first meet with a credit or debt management counsellor to go over the process of debt consolidation. You and your counsellor will go through your all of your debts and the counsellor will make an assessment on the best plan of action. Your counsellor will review all of your supporting documentation, and then decide if participating in debt consolidation is best for you.

Arranging Debt Consolidation: Your counsellor will create a repayment schedule that you can afford. The credit counsellor will then contact all of your creditors and negotiate a lower monthly payment with a lower interest rate. It is just one interest rate so you will save a lot of money and pay off your loan much faster.

Payments: You will make one payment monthly to the credit agency and the counsellor will send the payments to each of your creditors. You will be paying one lump sum to the agency each month until all of your bills are paid off. These monthly payments will be much easier to afford so you will not miss a payment.

Financial Restructuring Plan: The credit counsellor will work with you to create and implement a solid financial restructuring plan. This will consist of financial counselling that will include creating a household budget so that you can practice better spending habits. You will also learn how to manage your credit cards more responsibly. You will basically learn how to get a new start in proper fiscal management. As well, they will help you develop a comprehensive credit rebuilding program.

Debt consolidation may be the right solution if you are seeking to avoid bankruptcy. The advantages of debt consolidation include: consolidating all debts into one bill, one low interest rate, credit rating improved, no more late/penalty fees, you will not have to endure all of the disadvantages that come with filing for bankruptcy such having bankruptcy on your credit report for 7 years, and you will learn proper fiscal management skills. The main benefit of debt consolidation is you can eliminate all of your debts much faster and get rid of all of the stress associated with it. If your debt is getting out of control, consider debt consolidation from a credit counselling or debt consolidation company.

Looking for help from a debt consolidation Whitby firm? Serving the Durham region since 1992, the teams of bankruptcy trustee Ajax are your trusted expert in debt consolidation and debt counselling.

Source: http://articlesstudy.com/finance/debt-consolidation-process-in-canada

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