Right now, if you are reading this article it is because you would like to find a quick way to eliminate your debt . Your question: is there a way out? and if yes, how?
There are several ways to do this and by the end of this article you will know all the possibilities available. However, one thing you need to know, if you think about it a lot, is that the pressure to pay off your debt is overwhelming. In this case, we advise you to immediately schedule an appointment online to benefit from an analysis of your financial situation.
Let’s get into the thick of it. Here are some methods to eliminate your debt.
A budget is essential
Whether or not you are in good financial health, if you do not have a budget , we invite you to design it. A budget can be done quickly with a sheet and a pencil or even, thanks to some tools available online. Creating your monthly budget is the best way to manage and briefly analyze your financial situation. Moreover, it is by closely following your budget that you will be able to make your dreams come true. Make a list of all of your expenses and eliminate unnecessary expenses. Click here to start your budget exercise .
- See your spending clearly
- Focus on the necessary expenses
- Plan the repayment of your short-term debts
The consumer proposal
The consumer proposal is the most frequently used liberating solution. In most cases, the financial burden weighs heavily and the interest added to multiple debt payments is seen as a strain on your ankles. Let’s face it, the chances of winning the lottery and eliminating your debts as if by magic, are very rare. The consumer proposal is a solution to relieve your financial stress by up to 50%, without any interest payment .
You read that right, no interest payments. The Consumer Proposal protects you against harassment from creditors and service cuts. In addition, this solution allows you to keep your assets.
To benefit from this solution, you can start with a free meeting allowing the analysis of your situation and a creator of financial health will tell you if this solution is suited to your needs. This solution will allow you to improve your quality of life and to relieve you emotionally of your financial stress.
Several advantages are linked to the consumer proposal such as:
- No interest to pay;
- A maximum duration of 5 years;
- Put an end to creditors’ harassment
- Only one monthly payment per month for all of your debts;
- Possibility of keeping your belongings;
- Protection against wage garnishments
- Reduce your debt by up to 50%
The personal bankruptcy is the debt solution that is most like the magic wand. In fact, the use of this solution allows you to free yourself from your debts definitively and to start a new beginning. It puts an end to the harassment of creditors since it protects you thanks to the Bankruptcy and Insolvency Act . Of course, some debts are not dischargeable such as statements of offense, student loans under seven years old, alimony debts, debts contracted by fraud actions or those made by false declarations.
- Frees you from your debts and gives you a fresh start
- No interest to pay
- Put an end to creditors’ harassment
- Possibility to keep your belongings
- Protection against wage garnishment
The debt consolidation is a debt to the possible solution if you have sufficient income, if you are creditworthy and that you have good credit . If you meet all of these criteria, you will be able to obtain an agreement from your financial institution. However, be aware that if you have difficulty paying your debts every month, your financial burden will have to be resolved with another solution. You can check through Trans Union if your credit rating is adequate.
- One monthly payment for all of your debts
- Custom repayment periods
- Lower interest rate than your credit cards
- Maintaining your credit report
The voluntary deposit may be considered if your financial stress does not exceed more than $ 5,000. To begin these steps, you must go to court yourself and commit to paying a given amount each month. This monthly amount will depend on your income and will then be paid to your creditors until the balance is completed. You will not have to withdraw the amount yourself since this solution inflicts a direct deduction from your salary . However, your credit rating will be affected.
However, remember one thing, when you are choked with debt your credit rating is always affected and that is no longer your concern. Your primary concern is to let go of your stress and regain your former quality of life.
The agreement with your creditors
This solution should be done by yourself. You will need to contact each of your creditors to see if they can give you a specific deal. In many cases, if you are not under Bankruptcy and Insolvency Law , creditors will refuse a payment arrangement. To prepare for negotiation with your creditors , you will need to have a realistic budget on hand. If your proposal is based on realistic payments, they might accept your offer.