Debt Settlement in Canada
Stressed out with the mounting credit card bills? Having trouble paying the high interest rates through your nose? Wondering if debt settlement is an option for you or is filing for bankruptcy the way to go? Relax! Don’t get bogged down by your outstanding dues.
With growing financial downturn, individuals are finding it excruciating to make ends meet. And bad credit can really work to your disadvantage during a crisis. To add to that, harassment calls from creditors and collection agencies at odd timings can really put you off and make you lose hope. Don’t give up yet! No matter how deep your debt hole may seem, there is still a way out.
It can be highly confusing as to which service to choose with so many options at hand. We have outlined details about debt settlement in Canada to make your life a whole lot simpler…
What is debt settlement?
Debt settlement is a procedure where in you can reduce your outstanding dues in the form of unsecured debt by as much as 50% with the help of expert guidance. You are then expected to pay the reduced amount (in the form of fixed monthly payments), within a period of two to three years. If your creditors are convinced that you are in no position to pay the original debt amount, they will be willing to renegotiate your dues and substantially reduce them.
A lot of people think of debt settlement as an easy way out to save some dough. But remember that more often than not you may not qualify for debt settlement. If you have been up-to-date with your recent monthly payments and the creditors feel that you are capable of paying them the original amount, they may refuse to consider debt settlement. So unless you are lagging behind your payments for six months, the creditors may not pay heed to your debt settlement application. Even if you don’t qualify for debt settlement, a genuine debt settlement firm can still offer you solutions to come out of debt and repair your credit.
If you are taking help of a debt settlement company who can negotiate the debt on your behalf, make sure to choose a firm that has hands-on experience and expertise to deal with the rigid bank staff and other creditors. There are several companies in Canada promising top-notch results. But they may expect you to shell out exorbitant membership fees, which have to be paid upfront. This money, practically speaking, must go towards payments of your debts. Always remember that it is vital to for a company, which is result-oriented and not just interested in making money out of your misery.
A lot of debt settlement companies have an open door policy. They may be willing to take on anyone without detailed analysis of their financial situation. Please stay away from such companies. A genuine company will ask you every detail about your finances – income, expenses, liabilities, assets and outstanding dues – before offering you a solution.
An authentic debt settlement company will negotiate with the creditors but will leave the final decision to you. So it should be up to you to decide if the renegotiated amount is worth acceptance.
It may seem that the path of debt settlement is long and frustrating. But once you have cleared all your dues and are completely debt-free the initial effort will be worth a million! Don’t fall for marketing gimmicks and sweet talk of several Canadian debt settlement companies. Choose the one that has the same goal as yours – making you debt-free!
With careful planning, persistence and expert guidance it is actually possible to come out of the debt trap within a span of two to three years. You have every right to attain financial freedom and be a debt-free bird.