Debt Consolidation Canada

Economies all over the world are going through a bad phase. People are experiencing after effects of these difficult times as many are losing jobs and sitting at home without any steady source of income. It is obvious that during such times, you may not be able to pay your bills or repay your creditors on time. If you are caught in a debt trap and wish to find a way to get debt free and repay off your debts, help is there for you.

There are various ways which can help you repay your debts. It would be advisable to consult a debt counselor who can study your case and give the correct advice to get out of this debt situation. There are many options available to you including: debt management, IVA, refinancing and trust deeds. You shouldn’t think about filing for bankruptcy until and unless you have exhausted all other options and solutions available to you.

You can go for an Individual Voluntary Arrangement (IVA) which is a legally binding agreement between you and your creditors. The court appoints a licensed Insolvency Practitioner who will supervise your IVA. An IVA is set for a maximum period of 5 years, so you get debt free in 5 years. Your total debt is reduced and your creditors agree to a pre-decided monthly payment which you have to pay for the period of the IVA.  Your creditors cannot add further charges or interest and you get protection of the Court. You do not have to pay separate amounts to different creditors, instead you make a single monthly payment and this amount is arrived at by ascertaining how much you can repay each month. Once a person completes the IVA their credit rating starts improving and they can borrow money if it is needed.

Another option available to those who have high amounts of debt is loan consolidation. Loan Consolidation leads to one single monthly payment which will be less than what you previously had to pay. Your credit rating will improve if you keep on repaying your mortgage. There are other options available like debt management, refinancing and trust deeds which should be checked and considered before opting for a particular solution.