Are you in a situation of debt distress and are you looking for solutions to weaken the weight of your debts? Debt consolidation is an option available to you to reduce your debts .
Debt consolidation is a loan granted by your financial institution . The principle is simple. This loan allows the repayment of your creditors in one and only monthly payment to be repaid over 5 years. Your debts are all consolidated into one debt.
In addition, the interest rate on your single debt is relatively lower than those on your credit cards. Everything is then simplified to the extent that you are in the capacity to repay this debt. If this does not apply to your situation, other options are available to you such as the consumer proposal or personal bankruptcy .
In a nutshell, debt consolidation allows you to:
- Significantly reduce your monthly payments.
- Reduce interest costs.
- Manage your debts more easily by reducing your debts in one.
- Improve your credit report.
Debt consolidation, a solution adapted to my financial situation?
It is sometimes difficult to know the best solutions that apply to your specific financial situation. Some are more suitable than others. To direct you to the best option , debt consolidation is a good choice if:
- You have trouble with your budget at the end of each month.
- Your income is irregular or decreased.
- You think your interest charges are way too high.
If this situation is similar to yours, you would definitely need a debt consolidation to improve your financial health .
Be aware that financial institutions do not accept all debt consolidation loan applications . To promote your request, you must:
- Hold an acceptable credit rating.
- To obtain sufficient income.
- Be in the ability to repay your loan at 100% each month.
It is recommended that you act quickly so as not to damage your credit report, otherwise you risk significantly reducing your chances of getting a debt consolidation loan.
Debt consolidation is denied to you, what to do?
For many reasons, your financial institution may refuse you debt consolidation . Do not panic, other solutions are available to you . The consumer’s proposal is an effective one. Thanks to the consumer proposal , you can:
- Make a single monthly payment without any interest.
- Have the amount of your debts negotiated by a trustee, and therefore reduce the total amount of your debts according to your ability to pay.
Many people choose the consumer proposal after having a debt consolidation loan. Indeed, debt consolidation can increase the level of indebtedness of people who fail to pay their only monthly payment. They are then forced to turn to a consumer proposal or personal bankruptcy depending on their financial health.
It is recommended that you call on advisors from N. Séguin who will help you choose the best solutions according to your personal situation. Sharing your situation and getting professional advice will save you a lot of aggravations and offer you choices.