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.