As a mortgage broker is Vancouver B.C., we deal with a
lot of struggling homeowners. Many Canadians are having difficulty making their
household payments and other debts. As the Canadian economy normalizes and
picks-up, more and more Canadians are trying to regain control of their
finances. Many are succeeding in freeing themselves, but household debt levels
remain very high. For many people debt issues are a source of stress,
inconvenience and even embarrassment.
Consolidation Loans
There are a range of options for managing personal debt
and avoiding bankruptcy. The trick is finding the one that applies best to your
situation. One of these options is debt consolidation. This usually means
merging all of your debts into one low interest loan payment. The advantages of
this kind of arrangement are that you save on the interest rate and have the convenience
of one payment.
Of course debt consolidation isn’t for everyone and you should give careful consideration before committing to any kind of financial restructuring. Also, getting approval often requires a good credit standing
which you may not have. The types of people who seek consolidation are often struggling
financially.
Consumer Proposal
Another option is a consumer proposal. This is where a
proposal is made on your behalf to your creditors. This is an official process
and must be undertaken by a trustee in bankruptcy. If successful, payments will
be reduced to a manageable level and your overall debt burden may also be
reduced. Consumer proposals also take the form of consolidations and will merge
all your debt into one payment. While this will impact negatively on your
credit standing, it will make it easier to make your monthly payments.
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