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.