Is a Consumer Proposal in Scarborough the Right Debt Solution for You?

Many people in Scarborough, Ontario who are bogged down with a very heavy debt load and simply need more time to pay are probably wondering if a consumer proposal in Scarborough is the right debt solution for them. With so many information out there, it can be very confusing to make the right choice.

Residents of Scarborough do not have to decide on their own.They can consult with a Licensed Insolvency Trustee who can provide a balanced view of every available option for eliminating debt. The trustee will review your financial situation and help you decide if a consumer proposal may be the best way to help you get out of debt.

Only a Licensed Insolvency Trustee can explain in detail both the positive and negative sides of a consumer proposal. He is the only debt professional permitted by the federal government through the Bankruptcy and Insolvency Act to administer consumer proposals, as well as bankruptcies, so he is knowledgeable with the laws that govern it as well as the process involved to make it legally binding.

In general, proposals to creditors are best suited to debtors who meet the following qualifications:

• You have outstanding unsecured debts of more than $1,000 but less than $250,000
• You want to repay your debt but don’t want to lose your house, car and other assets
• You’re having difficulty making monthly payments and need more time to pay them
• You can’t afford your monthly payments and need help to reduce the balance on your debt
• A debt consolidation loan won’t cover all of your debts
• You’d like to have an exact time period for paying off all your debts and become debt free

If you meet all the above qualifications then you can take advantage of the many benefits of filing a Consumer Proposal, which can include:

• You can negotiate to reduce the overall sum of what you owe.
• Interest charges are frozen and stop accumulating at the date you file.
• You keep all of your assets, including any tax refund.
• You can stretch your monthly payments for as long as 60 months to lower the amount you have to pay every month.
• Monthly payments are now interest free.
• Payment amount is fixed regardless of how much you earn.
• Payment period is fixed regardless of income changes.
• You do not make any surplus income payments.
• Wage garnishments stop immediately.
• Calls from creditors stop immediately.
• Creditors cannot take any legal action against you.
• You do not pay your debts in full like in a Debt Management Plan or a debt consolidation loan, you are required to pay only a portion of the debt you owe.
• You do not need to submit any financial information to your Trustee.
• You are not required to give your tax credits or refunds to your Trustee.
• You can become debt free in three to 5 years time
• The effect on your credit score is not as severe as in a bankruptcy.
• You avoid bankruptcy.

A consumer proposal in Scarborough is one debt relief option that can greatly benefit many residents who have debts that continue to accumulate month by month and who are finding it nearly impossible to make ends meet. It gives them the opportunity to repay a portion of their debt and in doing so it restores their dignity and confidence in their own ability and helps them to regain some sense of control over their stressful financial situation.

How to Get Credit Card Debt Relief in Pickering

Every year many families in Pickering, Ontario struggle from the heavy weight of excessive credit card debts. They can’t quite seem to get on top of all their debt load and want to get help from whatever options for debt relief in Pickering are available to them.

When you find that you are only making minimum payments on your credit card debts and perhaps you can’t even make those payments on time, you can use any of these solutions to help you deal with overwhelming credit card debt.

Debt Consolidation Loan

In this technique, you combine all your current debts and then pay them all off using one new debt loan. This option will only work if:

• You get a new loan with a lower interest rate than what you are paying for your current debts, and
• The new loan will pay off all of your outstanding debts, not just some of them.

Debt Management Program or Debt Repayment Plan

In a Debt Management Program (DMP), you ask help from a credit counselling agency to negotiate with your creditors to consolidate your credit card debts and other unsecured debts into a payment plan that you can afford to pay. The Credit Counsellor will sit down with you and and help you set up a realistic budget and work out a realistic monthly payment that you can manage to pay. The Counsellor will present this payment plan to your creditors, arrange for all your debts to be included, and bargain for interest rates to be eliminated or substantially reduced. You don’t have to borrow more money, you just have to be able to pay the full amount of debts you owe as there won’t be any option to reduce the principal amount. You just stick to your budget and meet the monthly payments you negotiated so that all of your debts are paid off within 3 to 5 years.

A Consumer Proposal

This is one of the legal options you have for debt relief. It allows you to settle debts by making a legally binding deal with your creditors. You make a proposal that you would repay your debts and ask them to give you more time to pay and need help to make payments more affordable. A Licensed Insolvency Trustee will negotiate with your creditors to write off a portion of your debts in order to reduce the total amount you owe and arrange a repayment period of up to five years. The reduced amount and the longer payment period will stretch the total debt you owe into a monthly amount you can afford to pay.  

Filing for Bankruptcy

This is the last option for debt relief. It is a legal process that cancels most, if not all your debts, after you receive a discharge which can be in as short as nine months. If you do not have any assets to sell to your creditors, cannot afford a consumer proposal and need protection from legal actions from your creditors, then this option might work for you.

There are a variety of options for debt relief in Pickering to help you with debt and it can easily get confusing to know which one is right for you. Always seek professional advice from a credit counsellor or a Licensed Insolvency Trustee to learn more about each technique and how they can help pay down your massive credit card debt.

Is Personal Bankruptcy in Scarborough the Best Thing for You?

If you are a resident of Scarborough Ontario, Canada, and you are not able to afford paying your bills as they become due and you are unable to file for a consumer proposal to your creditors, then it may be necessary to file for personal bankruptcy in Scarborough to help you cope with your overwhelming debt load.

Filing for personal bankruptcy is a difficult decision for anyone to make. Surely it will help eliminate most, if not all, of your debts, but it will also negatively impact your credit score and make it difficult for you to obtain credit in future. Before you decide to go ahead with any decision, you must first meet with a licensed insolvency trustee to review all your options, and you can feel better that you are making an informed decision based on all the facts laid out to you.

Take the following pointers into consideration:

You may have other options 

Many people who are in so much debt, who don’t how to pay those debts, and who feel like  there is no light at all at the end of the tunnel, often think that going bankrupt is the only viable way out for them. In fact, bankruptcy is not an option for everyone. There are certain requirements that a person must meet in order to file for bankruptcy in Ontario and in other parts of Canada. For example, if you have enough assets that can be sold and they would generate enough money to pay off your debts, then you would not be easily deemed eligible for bankruptcy. If you have certain types of debts, such as child support, alimony, student debts and tax debts, those cannot be wiped out through a bankruptcy proceeding. If you have enough income to afford a repayment plan, then you won’t be considered for bankruptcy.

Other options  may work better for your debt situation, such as a consolidation loan or a debt management plan or even a consumer proposal. Find out first what available options are out there to help you get out of debt before even considering filing for bankruptcy. Going bankrupt should be the very last course of action to resolve your debt situation..

Know who to ask help from

There are so many debt collection scammers preying on debtors who feel helpless and hopeless. Be careful who you ask help from. Only consult with debt professionals who have the proper qualifications, such as those with Certified Credit Counsellor designation, Accredited Financial Counsellor Canada designation, and Licensed Insolvency Trustees who are granted licenses by The Superintendent of Bankruptcy under the Bankruptcy and Insolvency Act (BIA). These experts are highly specialized and experienced in helping individuals who have very high debts. They can give the right advice that is in your best interest and they know how they are going to work with your creditors to help you get out of debt.

Plan ahead 

When you go to qualified debt professionals for debt help,  they will assuredly find the right way to help you pay off all your debts and help you become debt free. Still, they go a step further to make sure that you don’t go back to the same spending habits and wind up in the same position all over again. Their services will include teaching you how to manage your finances and offer tips on effective debt planning and budgeting so you won’t go back into the same spending habits and patterns which got you into all your debt problems in the first place.

Filing for personal bankruptcy in Scarborough may be the only thing that comes to your mind when you realize that you can't afford to pay your debts. But, before you make any final decision you need to think carefully about your options, understand how the process works and what going bankrupt could mean for you and your family in the future.

Using Debt Consolidation Loans in North York to Pay Credit Card Debts

Many people in North York Ontario use debt consolidation loans in North York to help them cope with enormous credit card debts. It’s one method for debt relief that allows a debtor to pay off his current debts with a new loan that has a lower interest rate and longer payment terms.

Taking out a consolidation loan can be most helpful to people who have multiple debts. It can simplify their finances as it can solve three of the worst problems many debtors face:

1) High interest rates

Credit card debts can carry extremely high interest rates, some as high as 25 percent or more. Even if you keep paying the minimum amount required, there’s a good chance you’ll see your debt growing faster than you can pay off. It can be really hard to keep up with payments and ultimately you’ll find yourself paying more on interest charges than the principal amount you owe.  A consolidation loan may allow you to get a lower interest rate and save you money over the long-run. Take for example you have three credit cards at 18% interest, if you have a good credit rating and the capacity to repay, then it’s possible for you to get a line of credit at 11% interest to consolidate these debts into one payment. The lower interest rate allows more of your monthly payment to go towards paying down the principal amount of the debt, instead of on interest charges, thus allowing you to pay off the debt faster. You can make this work if you have a steady source of income to enable you to repay the new loan.

2) High monthly payments

Another problem people with lots of debt frequently struggle with are the high minimum payments, which are in many cases more than what they can afford each month. When you miss payments, you get charge more interest, monthly payment increases, more interest charges are added to the debt amount, the higher monthly payments keep getting --- it all leads to a domino effect and before you know it you can’t stay above water. If your monthly payment is too high, a consolidation loan can sometimes be an option to lower your monthly payment, and that can give you enough breathing room to get back on track.

3) Financial mess because of too many bills

Too many bills to pay can get you off track your budget very quickly. One thing it can lead to is that it makes it hard to even keep track of which payment is due on which date. When finances are not properly planned and controlled, you’ll soon start overspending, missing payments until you are struggling with an unending debt cycle. Your financial mess will only go on being an obstacle for getting out of debt unless you focus and start a plan to pay out everything you owe. A consolidation loan can help you deal with this problem by allowing you to pay up all your other debts and reduce the number of bills you have to pay.  This will streamline your budget and get you to focus on only one loan to pay each month, making it easier to turn your finances around.

For a lot of North York Ontario residents who owe more than they earn every month, debt consolidation loans in North York may be one possible option to help them repay credit card debts. If you want to know if you qualify for a consolidation loan, it’s best to speak with a debt professional, like a licensed insolvency trustee or a credit counselor, who can provide you with all the information you need to make the best decision.