Debt Relief Makes Financial Woes Manageable
If opening your credit card bills sending you in a state of panic, you should consider applying for debt relief. Debt relief is an option for consumers who have thousands owning in unsecured debt, but don’t want to file for bankruptcy.
Bankruptcy is not the only solution to your financial woes
Bankruptcy will destroy your credit rating for at least seven years and should really only be entertained when the sum is high and repayment seems unimaginable. This should really be a last resort option to relieve debt.
A Consumer Proposal may be right for you
A consumer interested in applying for relief meets with a Certified Debt Arbitrator to discuss how much money is owed and to whom. The Arbitrator then puts together a consumer proposal and contacts the creditors to see if they accept the proposal.
A consumer proposal is usually based on paying back a percentage of how much you owe. For example, for every dollar you owe the proposal says you will pay back 30 cents. This means you would be paying back 30 per cent of your debt. The creditors may accept or reject the proposal, and if it’s rejected, a counter-proposal may be filed.
Please note that only unsecured debts are applicable. If you have a mortgage or a loan tied to your home, car, or a co-signer, that doesn’t qualify because if you were to default on your payments, they get something in exchange. Money owed to a credit card company qualifies and in some cases student loans qualify, but only if a certain numbers of years have passed since you were last registered as a student.
Reasons a consumer proposal works
If consumers are feeling stressed about owing money, they tend to stay home and not spend money. This is bad for the economy, so a consumer proposal helps to relieve the financial burden and stress, while allowing consumers to still be out supporting the economy.
Many companies that assist you in finding relief also provide counseling to get control of your spending and understand how to get your finances work for you. The consumer proposal consolidates all your unsecured debts into one low monthly payment to give you more cash flow.
If you file for bankruptcy, your creditors get nothing. A consumer proposal means that they are getting a portion of what is owed to them. It’s better to get something than nothing. If you’re feeling overwhelmed with outstanding bills that seem impossible to pay, find out your options, because bankruptcy is not always the best course of action. A certified arbitrator will be able to help you determine the best way to relieve your financial burden and get back to enjoying your life.
There are many companies offering assistance to those with financial troubles. Some charge a fee up to $1,000 for preparing your consumer proposal, while others are non-profit and charge no fee. Doing your research is a good way to find a company that works for you at a price that is within your budget.
Canada’s leading credit counselling Newfoundland firm can resolve your debt issues. Providing debt consolidation Nova Scotia, debt management, and debt counselling services, we can help free you from whatever type of debt that ails you. Our services extend to the Atlantic regions of Canada.