Is it possible to overcome your debt when you are struggling with poor credit, missed payments and a bad rating?
Owing money often becomes a vicious cycle: you may be striving to improve your finances, but you simultaneously need to pay your creditors and all of your income ends up going back out. Ironically, this can lead you to accumulate bad credit while you are trying to obtain loans and/or need to delay making payments. All the while, it may feel virtually impossible to break out of this scenario, let alone save money.
The most effective answer is finding a debt solution that enables you to pay down your debt without accumulating more in the process. However, when you are already facing bad credit in addition to financial struggles, the challenge is even greater. That is because having bad credit often negatively entitles you to fewer options and higher interest rates as you are considered more of a financial risk by potential lenders.
What are some common debt solutions?
A debt consolidation is one of the numerous debt options available to people who are in this predicament. The program exists whereby you may be able to consolidate the various payments you need to make to a variety of creditors into one lump sum. It is usually on a monthly basis with minimal interest rates and the licensed insolvency trustee you work with acts as the liaison between you and the creditors of your unsecured debts, distributing the money to each of the applicable recipients.
A debt consolidation loan can last up to five years, but is normally half that time. When you have completed all the appropriate payments, your licensed insolvency trustee can work with you to build up your credit that has likely suffered as a result of your debt. They can provide credit counselling in Ottawa to help you get back on your feet.
As long as the reputable and credible financial expert from whom you receive advice recommends this route when considering all factors of your specific case, it is often a non-drastic solution—especially compared to filing a consumer proposal or filing for bankruptcy—that is also one of the least impactful on your credit rating. Licensed insolvency trustees offer helpful credit counselling that could help you get started on the road to recovering from your financial troubles.
Speak with a Licensed Insolvency Trustee who understands your unique situation
Speaking with a licensed insolvency trustee, like our team at D. & A. MacLeod, who has financial knowledge and expertise to offer clients is one of the most assured ways to help you overcome debt. These impartial professionals are more trustworthy than some other financial advisors because they must abide by the Office of the Superintendent of Bankruptcy and the Bankruptcy Act. Unlike some less credible sources, they will provide objective assistance without looking to sell other services.
In addition to, or rather than, a debt consolidation, you may simply require help reviewing your income and expenses, then budgeting your money accordingly to help you with your finances. Licensed insolvency trustees also offer credit counselling that enables you to improve your financial behaviour. Expert advice will give you a better sense of how to avoid repeating the same mistakes in the first place and regress in the future.
The purpose and attractiveness of a debt consolidation primarily revolves around obtaining a lower interest rate, making payments more easily because they are combined and scheduled, fees that are often more manageable, that enables you to make payments to your creditors more effectively and efficiently. No matter what, it is important to ensure you make the best decision for you. A licensed insolvency trustee like D. & A. MacLeod can review and explain the best debt solutions with you and help you improve your credit.
Call and speak to a trustee today about our debt counselling and bankruptcy services at 613-699-2538 or contact us at one of our other locations in Eastern Ontario.