Debt Consolidation Canada
For many Canadians, the debt load they carry of so burdensome that the prospect of a debt consolidation loan is far out of their reach. The problem with debt consolidation Canada is not only that it is a lengthy process, often taking a decade to complete, but also that it essentially creates another debt.
Luckily the option to negotiate a lowered debt settlement now exists. In Canada a debt settlement is extremely similar to filing a consumer proposal. Effectively settling ones debts is a highly cost efficient method of paying of more than ten thousand dollars in unsecured debts without having the burden of having to take out a debt consolidation loan or filing a claim of insolvency.
Debt settlement firms are available to assist in negotiating principle balances with creditors. Truthfully, the credit companies would rather settle a debt and at least recover some of their lost funds as opposed to having their clients file bankruptcy and end up getting far less money back than they deserve.
Unlike Debt Consolidation Canada company that would provide a loan, often at a high rate of interest, to pay off outstanding debts in full, a debt settlement company will negotiate the principle balance and work out a settlement that is within the budget of the debtor. In order to be successful with the newly negotiated balance, the debtor must ensure that they meet their monthly obligations as failure to do so will result in the agreement being nullified.
A debt settlement firm has the ability to assist in settling many different types of debts. Such as, unpaid credit card debts, unsecured loans, personal loans that do not have collateral, personal lines of credit, various collections accounts, and even medical and dental bills. Secured debts, however, cannot be settled as the creditor has the option of repossessing and auctioning off collateral and property to regain their money. It is important to note that lawsuits, income tax and other government debts, utility bills, unpaid car loans, student loans and mortgages cannot be negotiated either.
If you feel that you would benefit greater from negotiating your debts instead of taking out a debt consolidation Canada loan, do your research and contact a couple of firms before settling on one. Some debt settlement companies are able to guarantee upwards of a 60% reduction in the debt, thus enabling their clients to eliminate their debts in as few as three years.
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For many Canadians, the debt load they carry of so burdensome that the prospect of a debt consolidation loan is far out of their reach. The problem with debt consolidation Canada is not only that it is a lengthy process, often taking a decade to complete, but also that it essentially creates another debt.
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