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.
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