Helpful Tips Before Getting Debt Consolidation Loans in Georgetown

When you are juggling various debts with high interest all at once and bills are piling up every day and you don't have enough money to cover everything, what do you do? Georgetown debt consolidation loans could possibly help you to solve these problems.

Taking out one loan to pay off a bunch of loans, like your credit cards, medical bills, personal loans, payday loans, and other unsecured debts does make good sense. If you are savvy, you could make a debt consolidation work for you. If not, then you could be worse off and end up paying a lot more than what you would have otherwise. It’s important that you exercise all steps to proceed with caution.

Follow these tips to help you do just that.

Do a credit report check

Lenders will mostly base your ability to pay a loan on your credit score. If you have a fairly good score and a reasonable credit rating, then most likely you will be able to consolidate your loans at a better rate. So, one of the first things you’ll need to do is check the accuracy of your credit report. Any errors could prevent you from qualifying for a debt consolidation loan. If you find an error, dispute it right away.You can ask for a free copy of your credit report from the two national credit bureaus in Canada, Equifax and TransUnion. Once you know where your credit stands, you can negotiate to get a loan with the lowest interest rate.

Find out all your options

There are many debt relief programs to help you get out of debt. Don’t presume that debt consolidation loans are the only choice you have. Talk to accredited debt professionals like a credit counselor or a licensed insolvency trustee who are well versed with with all debt solutions that are legally available to Canadians. They usually provide a free initial consultation, so pay them a visit and they can evaluate your financial circumstances and help you decide the best option for your situation. Maybe it would also help if you contact your creditors and possibly negotiate for lower interest rates to help make the minimum monthly payments more affordable. For all you know it you don’t really need to take out a new loan, and that all you need is a review of your budget and you can simply prioritize payments for those with higher interest rates until all your debts are paid off.

Compare before choosing

Never rush into the first offer you get. To ensure that you get the right loan with the best deal, it’s highly recommended that you do a comparison check. Get quotes from different lenders and compare interest rates, payment terms and fees. Always read the fine print for any hidden charges that could impact your ability to afford the loan. Always choose the loan that will cost you the least amount of money especially in the long term, which means the one with minimal fees, the lowest interest rate and a reasonable payment term.

Do a reference check

Lending institutions and mortgage companies that have a good reputation usually hold accreditation from the state or other third party professionals. Make sure you get a lender that is designated as an approved lender by The Canada Mortgage and Housing Corporation (CMHC) or you can check out private lending companies through the Canadian Better Business Bureau or at your own state consumer affairs bureau to ensure that the lender is accredited.

If done right, Georgetown debt consolidation loans can help many people in Georgetown Ontario with unsecured debts find a way to pay them all off more quickly. With lowered interest rates, late fees eliminated and monthly payments more manageable, this form of debt relief can really be a godsend.

Why You Should Be Looking For a Licensed Insolvency Trustee in Scarborough for Help with Debt Problems

We see so many individuals and companies in Scarborough, Ontario advertising themselves as debt experts and offering all types of services to helpless residents who are desperate to find a way out of their overwhelming debt load. However, out of all these so-called debt experts only a Licensed Insolvency Trustee in Scarborough is licensed by the federal government to provide debt relief services under the Bankruptcy and Insolvency Act.

Licensed Insolvency Trustees are debt professionals. They all hold a university degree, usually in accounting or some other form of financial training. Their accounting acumen allows them to develop debt management strategies that are customized based on each individual’s financial circumstances and goals.

Some of the services you can expect when you meet with a licensed insolvency trustee in Scarborough may include:

Consultation

The initial consultation is the very first meeting with the LIT. This is always offered for free. The trustee will sit down with you to review your financial situation. During the process, expect him to ask for financial details and other personal questions to help him assess the circumstances that led to your debt problems. Trustees also offer consultation services on an ongoing basis at affordable rates for debtors who choose to manage their debts on their own but may need some legal advice from time to time to help them make informed decisions about their rights when dealing with their creditors themselves.

Debt relief services

Licensed insolvency trustees are the only professionals who are licensed by the federal government to provide comprehensive debt information about different debt relief programs available to consumers. They can do so much more than handle consumer proposals and personal bankruptcies. After they go through a review of your debt situation, they are legally obligated to properly advise you about all the informal and formal options for debt relief that you can avail of, which will include the following:

• Credit counseling
• Debt management programs
• Debt consolidation plans
• Debt settlement
• Consumer proposal
• Bankruptcy

After explaining the advantages and disadvantages of each of these options, they will help narrow down your choices and guide you in choosing the most effective debt solution for your specific circumstances.

If you choose to go through credit counseling, debt management, debt consolidation, or a debt settlement program as the best method to deal with your debt, the trustee can refer you directly to reputable third party individuals or agencies that are in their network.

Consumer proposal administrator

If the trustee recommends that you file a consumer proposal instead of filing for bankruptcy, he can act as your Consumer Proposal Administrator and will deal with your creditors on your behalf and guide you through every step of the process.

His services as a Consumer Proposal Administrator will include:

• Negotiating with your creditors to lower your total debt amount and extend payment terms
• Creating a proposal that is both fair to you and your creditors so that it has the best chance of
• Ensure that you make payments on schedule to keep with the contract agreement with your creditors

Bankruptcy services

If the trustee deems that filing for bankruptcy is absolutely necessary, he will proceed to file your bankruptcy and guide you through the entire process to make sure that your rights are upheld.

His services as a Licensed Insolvency Trustee in your bankruptcy case will include:

• Make sure that the Stay of Proceedings is automatically carried out once your bankruptcy papers are filed to provide you with legal protection against creditor harassments, wage garnishments and lawsuits
• Stay in contact with your creditors throughout the negotiations for your proposal and settlement of claims
• File any outstanding tax returns that you might have
• Make sure that you attend regular credit counselling sessions and complete all duties required of you in your bankruptcy
• Apply for your discharge after 9 month
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Residents of Scarborough, Toronto looking for debt advice should go directly to a licensed insolvency trustee in Scarborough for help with debt problems. There is no need to go to anyone else. A LIT is licensed by the federal government, the most highly educated debt adviser you can talk to, and the only person qualified to properly advise you of all your options to help you eliminate debt.

Best Types of Loans for Consolidation

Personal loans for consolidation are often considered by many people who are struggling with bills they can’t pay as a viable option for debt relief. It can help make your debt payments easier by allowing you to combine all your high interest rate debts into one loan with a lower interest rate. The better terms lower your monthly payment and make it affordable to pay off your monthly bills.

There are several kinds of loans you can take to consolidate debt. Every option carries its own price tag and it’s best that you understand the risks involved for each one before you choose the method that works best for you.

Unsecured or Secured Loans

When you make a secured loan, the lender will require you to provide some asset as collateral on the loan. This can be your car or home or another property or other valuable possessions that the lender can easily convert to cash in the event that you fail to make payments on the loan. Unsecured loans do not require any collateral, but they typically have higher interest rates and come with hefty penalties if you default on payments.

Credit Card Balance Transfers

Many credit card companies offer promotional rates with zero or low-percent interest on balance transfers. If you decide to avail of a balance transfer offer to repay credit card debt, you would transfer several or all your outstanding credit card balances onto a single credit card that has a low interest rate. There are some things you must make sure you do to make this option work for you:

1. Be aware of the expiry date. The low interest rate is only offered for a certain period of time, and once the date lapses the regular interest rate will immediately go into effect.
2. Use a credit card with a large enough credit limit to hold all your high-interest credit card debt.
3. Take into account any additional charges, such as a transfer fee which can usually be around 3% of the total balance.

Personal Debt Consolidation Loans

The one advantage of taking out a personal loan is that you can arrange to make fixed payments over a fixed period of time. If you are not sure that you can pay up all your debts using a credit card balance transfer before the expiry date of the promotional late-interest rate, then it is better to make a personal loan to pay off your debt than do a balance transfer. If you avail of a personal loan, make sure you get a low interest rate than what you are paying on your existing debt and that you pay the loan out in the shortest time possible.

Home Equity Loans

Another way to consolidate your debt is to use the equity in your home as collateral. If you have a high credit score and enough equity in your home, you can avail of a home equity loan with one of the lowest interest rates possible. The biggest drawback is that you put your home on the line and in the event that you stop making payments on the loan, you can face the risk of foreclosure on your home.

For some people, taking on these types of loans for consolidation may be the best way to get out of a severe debt problem. Whether it will work for you really depends on your financial situation. Consult with a debt professional such as a credit counselor or a licensed insolvency trustee to help you figure out if any of these strategies is a suitable option you can take to pay off your debts.

Two Criteria for Choosing the Right Credit Counselor in Oshawa

What many people don’t realize is that not everyone is equipped with the knowledge and discipline to get out of debt by themselves.  For these people, they need someone who can guide them and show them the way to financial freedom. Talking to an experienced credit counselor in Oshawa is one way to get this kind of help.

There are many ways that an experienced credit counselor can help you with. These can include:

• Taking a close look at your income and spending, and helping you determine where your money is spent each month.
• Helping you identify opportunities to cut costs and save more of what you earn.
• Creating a monthly budget to categorize and set limits for all of your expenses.
• Creating an action plan to help you stick to the budget so you can regain financial stability as soon as possible.
• Helping you determine how much you owe, how much you’re paying in interest, and finding out where you stand with your creditors.
• Recommending that you enroll in a debt management plan or a debt consolidation service to combine your debt into one lower monthly payment.
• Providing tips about how to manage your credit in the future.

Teaming up with the right counselor is critical to your success. So, here are some tips to help you choose a trustworthy credit counselor so you can stay away from the less reputable individuals whose only aim is to profit at your expense.

Check the qualifications

In Canada, all credit counselors should have the following requirements at the very least:

• Complete both the AFCC and Insolvency Counsellor's Qualification Course (ICQC) in order to obtain Certified Credit Counsellor designation granted exclusively by the Ontario Association of Credit Counselling Services
• Fulfill an extensive work experience requirement, including counselling experience and consumer financial industry experience
• Provide satisfactory references
• Agree to comply with the code of ethics specific to certified credit counselors
• Accredited counselors are obliged to fulfill continuing education to keep current with developments in the financial counselling industry.  

Choosing a certified professional will give some assurance that you are working with someone who has sufficient training and a vast experience in this field.

Don’t overlook the red flags

Credit counselors with a good reputation share these common qualities:

• Will never ask you to pay any upfront fees before providing you with any service
• Will always offer a free initial visit or consultation
• Will provide you with very detailed company information and staff credentials
• Will not refuse to offer their services even when you are unable to pay
• Will not offer you any guarantee that they can negotiate deals to reduce debt amounts
• Will not force you to enroll in a debt management program
• Will explain to you all debt relief options available to you
• Will not hesitate to provide in-person meetings, even though virtual sessions via online chat, Skype or telephone are readily available

It is highly recommended that you meet with potential credit counselors in-person so you can look them in the eye and talk to them face to face so you can determine whether or not they really have your best interest at heart.

Having financial problems can make you very vulnerable and stressed and unable to make sensible decisions. Make sure you are on your right mind when you are contacting a credit counselor in Oshawa for help so you can be sure that any prospect has the credibility, expertise and reliability to help people become debt free.

Four Ways Consumer Proposals in Toronto can Help You

For many Canadians who are deep in debt and think that there’s no way out, consumer proposals in Toronto offer a much welcome relief that can alleviate a great deal of stress. Consumer proposals provide an option to consolidate debts and allow them to make repayments largely based upon only what they can afford.

A consumer proposal is a debt relief program under the Bankruptcy and Insolvency Act that is administered only by a Licensed Insolvency Trustee. It is basically a formal agreement between you and your creditors wherein they agree to reduce your debts for a certain amount with no interest charges and no additional fees and that they will not take any legal action against you, and in turn, you agree to pay off all your debts following a payment schedule within the agreed period of time.

Many people choose consumer proposals as a viable alternative to filing for personal bankruptcy for many reasons.

1. It allows you to pay what you can afford.

One of the biggest advantage that a consumer proposal offers is the ability it gives consumers to make affordable debt payments. Before filing a consumer proposal, you and your trustee will work together to come up with  a monthly amount you can afford to pay and which your creditors will consider fair to ensure that they will accept your proposal. Your trustee will then negotiate with your creditors in your behalf to lower the total amount of debt that you owe them and to stop the payment of interest charges and other additional fees. Once your creditors accept the proposal, you would start making payments on the new amount in one equal payment every month for a period of three to five years. Your payments won’t increase even if your income does and you’ll never pay more than the agreed upon amount. If you do not default, all your debts are paid off after three to five years.

2. It will stop creditors from calling.

Once you fall behind on paying your debts, creditors will start calling right away, and they won’t stop harassing you until you resume making payments. In Toronto, there are only two ways to legally make your creditors stop calling you -- through a bankruptcy or a consumer proposal.

Once you decide to file for a consumer proposal, your trustee will contact your creditors as soon as possible. Once they know about your filing, they are required by law to immediately stop all collection activities against you, which can include phone calls, wage garnishment, collection letters, and more. Once collection calls stop, you will instantly feel huge relief from a great deal of stress.

3. It can help you rebuild credit faster

Consumer proposals will have a negative impact on your credit score, although the damage will not be as severe as when you have to declare bankruptcy. Generally, you will be given an R7 rating which will stay on your record for up to three years after you have satisfied all of the terms of your consumer proposal. From this point, you can start to rebuild your credit. In contrast, a personal bankruptcy will give you an R9 rating, which is the lowest rating,  and it will stay on your credit report for six years after your discharge. And so, it will basically take you three times longer to start rebuilding your credit in a bankruptcy than in a consumer proposal.

4. Avoid declaring personal bankruptcy

Many people choose to file for a consumer proposal as a way to avoid bankruptcy. It offers more flexibility, no need to report your income or make surplus income payments. If your financial circumstances turn around and you can afford to pay off your proposal earlier, you can start to repair your credit faster. Most of all, it allows you to keep your assets and other possessions.

In Toronto, consumer proposals are used by thousands of people to help them get out of debt. But keep in mind, although it is one of the options you can take for debt relief when you become insolvent, it may not be the right choice for your situation. It is best to talk to a Licensed Insolvency Trustee who is legally obligated to discuss all your legal options to help you get out of debt.

Toronto Business Bankruptcy Services

Due to the natural complexity of the bankruptcy laws, an average person would have great difficulty in comprehending them, which is why finding the right Toronto business bankruptcy services is crucial. They become even more complicated when the courts deem it is necessary to make and implement some amendments in the future. In times like this, hiring a good and experienced bankruptcy lawyer would be necessary.

The specialization of a bankruptcy lawyer is centered upon the rules and laws that are related to bankruptcy. Nevertheless, one should bear in mind that it is not good to assume to assume that all lawyers are indeed experienced in some specific laws of a state. Hence, the reason to enlist the services of a local bankruptcy lawyer with a relevant background in bankruptcy laws would be very important. The implementing laws in one particular state may not be the same with the implementing bankruptcy laws in another, therefore they are varying from region to region or state to state. This implies that prior to hiring a local bankruptcy lawyer, it is important to know that he has more than enough experience and exposure in your area.

To many people, filing a bankruptcy can be considered as a life defining moment and coming along with that are a gamut of emotions, too. For this reason, it is highly important that you consider hiring a lawyer who understands where you are coming from or how you are feeling due to your circumstance. He also respects your feelings and recognizes exactly what you are going through. You will know that you have just come across a good and dependable bankruptcy lawyer if he knows how to identify and handle the fears and anxiousness that his clients may be having.

One key element you need to consider when filing for a bankruptcy is your budget. Naturally, a client will be necessitated to settle or pay for the bankruptcy itself. The amount of which would greatly depend upon the particular type of bankruptcy that you are in.It can’t be denied though that there are a few bankruptcy lawyers who will charge you high for their rendered services.

The successful outcome of your bankruptcy case will greatly depend upon your careful choosing of a reputable lawyer. Randomly selecting your bankruptcy lawyer is very risky. Leaving things to chance may have undesirable repercussions on your bankruptcy case.

It is also unwise to hire a bankruptcy lawyer at the very last minute. It will be in your best interest if you searched in advance or conducted a quick background check on your prospective bankruptcy lawyer first prior to making any decision to hire. It is important that you only enlist the help of a bankruptcy lawyer who has specialization in the type of bankruptcy you are in. In order for you to have a wider range of available options, you may seek recommendations from your circle of friends, colleagues and even relatives so you may find the right law firm offering the right kind of Toronto business bankruptcy services.

What Are Your Options for Debt Assistance in Oshawa?

Struggling with overwhelming debt does not have to be your way of life forever. You can get on top of all your debt if you consider getting the right help. However, finding debt assistance in Oshawa can be hard with so many programs and options to choose from.

Residents of Oshawa, Ontario who are going through money troubles have a number of options to choose from to help them get the relief they need. Deciding what option for debt relief is best for you and your unique financial situation requires a detailed understanding of the differences between each of these options to help you be better equipped to make the right choice for you and your family.

Let’s take a look at the four most common debt assistance programs in Oshawa:

Debt Consolidation Loans

This option can be great for people with multiple credit cards who are struggling to make more than the minimum monthly payments to their creditors. For this option to work, you have to get a new loan with a low interest rate and with an amount enough to cover all your other current debts.

You can avail of two kinds of debt consolidation loans:

• Unsecured debt consolidation loan - This type of loan does not require you to put up any type of collateral. It is basically extended to you in good faith that you will repay what you have borrowed. Lenders look at your credit score and overall credit profile as the basis for getting approved for this type of financing. if you’ve never used credit before or don’t have a good credit score then you may not be able to get approved for an unsecured loan.

• Secured debt consolidation loan – This type of loan requires  some kind of asset (house, car, piece of property) to be used as collateral in the event that you default on your loan. Because there is collateral as security, it is easier to obtain from a lender and is typically approved with a higher borrowing amount allotted.

Debt Management or Debt Settlement Programs

With this option, you’ll have the support of a trained counsellor who will help you through the process of paying off your debts until you become debt free and who will also help you learn to handle your finances so that you won’t become overwhelmed with debt again.

Consumer Proposal

Another debt solution is to file a consumer proposal. If you have a debt load greater than $5,000 but less than $250,000, have the means to repay a portion or your debts and just need more time to pay your creditors,  are facing escalating interest charges, wage garnishments and threats of legal action and don’t want to give up your house or any of your belongings to pay off debt, then this arrangement can be for you.

Bankruptcy

Personal bankruptcy is mostly considered an extreme solution for debt relief because of its long-lasting and far-reaching consequences. It is a legal proceeding that gives people who have gotten into extreme financial difficulty a fresh start by ending the legal actions of their creditors and a court order that says they don’t have to repay certain debts after the bankruptcy is discharged. However, the bankruptcy stays on your your credit record for 7 years, making it difficult to get credit, buy a home, get life insurance, or sometimes get a job.

Thousands of Canadians struggle with financial challenges due to many reasons, such as job loss, medical concerns, divorce or separation. The first step towards getting back on track is to get the help you need. All these options for debt assistance in Oshawa are available to help those in financially challenging situations to overcome their debt by providing professional support, guidance, and responsible solutions.

How to Find Reputable Agencies That Offer Credit Counseling in Oshawa

There are many companies offering credit counseling in Oshawa, but you have to know where to look to find those that are genuinely willing to help. The whole process can really be a very positive experience if you choose a reputable organization.

Reputable credit counseling agencies can help you get out of debt in several ways:

• Provide advice and guidance on money and debt management.
• Help you develop a budget.
• Negotiate a repayment plan with your creditors to reduce or eliminate interest charges and stop late and overlimit fees.
• Offer  free educational materials and/or courses on basic money management.

Trustworthy agencies share these common characteristics:

• They have counselors that are certified and trained in consumer credit, money and debt management, and budgeting.
• They send out free information about their organization and the services it provides without requiring you to provide any details about your situation.
• They always provide an initial counseling session which normally lasts an hour, with an offer of follow-up sessions.
• They will evaluate your entire financial situation thoroughly and help you develop a tailored plan that will solve your money problems.
• They have specific rules in place that are aimed at protecting consumers from potential stumbling blocks such as high up-front fees and late payments to your creditors.
• They are accredited by a National Association of their peers, like the Ontario Association of Credit Counselling Services (OACCS)

If a credit counseling agency doesn't have these trust factors, consider it a red flag and try to find another company to help you. Here are some tips to help you find the best agency that will work best for you.

Check out basic information

Look up better business bureau records or do a search in google for both for-profit and nonprofit agencies. In canada, there is a general rule that a company that provides a high standard of service should not have more than 1 or 2 complaints filed on their record with the Better Business Bureau (BBB) within a 3 year period. It is based on the simple logic that when the service provided is good, then the client won’t have any complaints at all.  Based on this standard of measure, check if a company has really good client reviews across several reputable websites.

Check out the fees

Reputable credit counseling agencies are bound by a strong code of ethics from charging high setup fees. They may ask for monthly administrative fees, but these are generally limited to $50. There is usually an initial DMP Enrollment fee of about $75 or less. If you cannot afford the fees, most agencies are willing to reduce or waive the fee.

Check if they provide in-person help

Nowadays, we see many companies providing counseling services through phone and internet communication. If you are someone that connects better with face-to-face interactions, then you should find an organization with a local office near you that offers in-person counseling. Ask friends and family whom you know have have used credit counseling services before to recommend any to you. Your financial institution and local consumer protection agency may also give you some good referrals.

If you’re struggling with a heavy debt load and can’t keep track of mounting bills, can’t stick to a budget, or can’t work out a repayment plan with your creditors, then you may need to contact an organization that offers credit counseling in Oshawa that will work with you to solve your financial problems. Be sure to do a thorough review of each company you plan to work with to ensure that you choose only the legitimate and reputable ones that won’t cause you to acquire any more debt.

Consumer Proposals in Toronto Can Help You Avoid Bankruptcy

Consumer proposals in Toronto can help you avoid bankruptcy and enable you to work out a formal agreement with your creditors to pay them a portion of what you owe them in full settlement of your debts. If your creditors accept your offer then your debts are significantly reduced to the amount you have agreed to pay them and your creditors are prevented from taking any legal action against you.

Consumer proposals are a much more favorable option compared to bankruptcy which lenders and financial institutions would often prefer a debtor to take. The arrangement benefits both parties. Creditors would rather you settle your debt by paying a reduced amount and get paid at least some of what they are owed, and you get to retain your assets and avoid drastically damaging your credit.

A consumer proposal is a legally binding process governed by the Bankruptcy and Insolvency Act. It is a formal agreement between yourself and your creditors that you will pay back a portion of the debt you owe at your own pace over a set period of time.

In recent years, consumer proposals have become a popular choice among highly-indebted Canadians. A big part of its popularity is the many advantages it offers, which can include:

• Eliminate unsecured debts for less than you owe
• Reduce your monthly payments;
• Keep your assets like your home or car
• Get immediate protection from your creditors
• Stop all legal action including collection calls and wage garnishments
• Avoid bankruptcy
• Allow you to start saving for your future

A consumer proposal is essentially a plan that can only be arranged and administered by a Licensed Insolvency Trustee (LIT). The LIT will develop an offer for your creditors to revise the terms of your debts, including negotiating a more affordable outstanding amount, payment schedule, and/or interest rate.

To put the plan in place, your trustee will first determine how much you can afford to pay back every month. He will take into consideration several factors, such as your living expenses and all your sources of income. Once he has determined the amount you can afford to repay, he will then set up how long your consumer proposal will last. He  can arrange the payment plan for three years or up to five years.

The plan is then proposed to your creditors. In order for the plan to take into effect your creditors will  have to accept the proposal. Creditors have 45 days to vote for or against your proposal. If majority of your creditors agree to your proposal (50%+1 based on the dollars you owe), then it is deemed to be accepted by all your creditors. If no one objects within 15 days following the acceptance, your proposal will be approved by the court. Once approval by the court is released, this starts the formal agreement and you and your creditors are bound by law to commit to the plan.

If majority of your creditors vote no against the proposal, it can be amended. Your trustee will call a meeting and you and your creditors can negotiate directly and come up with a fairer deal that both parties can accept.

For many people who don’t want to go bankrupt, consumer proposals in Toronto are a better debt solution. Speak to a Licensed Insolvency Trustee to make sure that it is an option that you can take to help eliminate your debt and gain control over your financial future.