Are you knee-deep in debt, trying to crawl your way out of this financial nightmare? Thankfully, when you try to seek debt help in Canada, the best financial institutions are available to help you.
Various government-approved organizations in Canada strive to help its citizens have a more straightforward, stress-free life where they can pay their bills on time. And as a Canadian, you are privy to debt-management processes and credit-counselling sessions.
So today, let us discuss the various get-out-of-debt options that can free you from the constraints of creditors, repayments, and many other financial liabilities.
#1: Debt Settlement
Some income streams are sudden. For example, your insurance matures, or you receive your inheritance money. Now, if you are in debt at the same time, asking a professional about debt settlement is a wise option.
Debt settlements help you pay a fee to official debt settlers to settle your debt issues with your creditors. An option like this is beneficial if you no longer have a fixed income source or have several unpaid bills.
It is crucial to have money at hand before approaching debt settlement institutions. Or else it is challenging for them to negotiate and persuade for a settlement with your creditors. Now, debt settlement puts a dent in your credit score.
But its long-term benefits of being debt-free weigh heavier, as it works wonders in getting out of growing debts.
#2: Credit Counselling Sessions
Do you want to manage your money more efficiently? Then credit counselling is for you. Many Canadians often have to choose between credit card or loan payments and next week’s groceries.
Prolonging financial stress can have dire effects on your lifestyle. Thankfully, many reputable financial organizations offer free credit counselling to help you manage your money better.
A professional credit counsellor takes note of your income streams, assesses your spending habits, and draws out an ideal budgeting plan for you. And even if these sessions are free, the counsellors are patient and ensure that you feel comfortable with the budgeting.
Credit counselling is a fantastic way to save money to pay off any due debts or make a necessary purchase without facing future uncertainties.
#3: Debt Management Programs
Does your creditors-to-income ratio look like a 3:1? Then professional debt management programs are perfect for you. Too many monthly payments to multiple creditors will dry your pocket by the 10th date.
Fortunately, professional debt help programs like these will persuade and arrange with your creditors. The solution includes rolling up all your monthly credit payments into one monthly expense.
And since only reputable and government-licensed financial firms have the right to help citizens this way, most creditors offer little to no interest on your repayment.
Debt management programs include the following:
- Visits from the program’s professional
- Confidential meetings with the firm’s appointed credit counsellor
- Negotiation meetings with your creditors on your behalf
While the program is a longer process, it is foolproof and helps you manage your debt issue.
#4: Debt Consolidation Loan
When you have way too many repayments each month, it is stressful. But what if you can reduce the number of payments alongside your interest rate?
With a debt consolidation loan, you get to forgo:
- Multiple debt payments
- Their interest rates
- Tight savings
And instead, you make one payment for one bundled-up loan under one interest rate.
Now keep in mind that debt consolidation load still equates to you having a loan. So it is best to take some budgeting tips from a credit counsellor if you want to take this road.
Conclusion
So now you know four great ways to manage your debt situation. Choosing a professional, government-backed, and non-profit organization to help you have financial stability offers long-term benefits.
