Debt consolidation in Ontario is available to those struggling with debt. Do you qualify?
When you realize you are in over your head with debt, either because you are struggling to make your monthly payments or simply have too many different ones, those minimum payments can pile up and then the only natural solution appears to be a debt consolidation.
Traditionally, a debt consolidation in Ontario occurs when a lender agrees to loan you money to pay off your debt and then you make a single monthly payment to them.
These types of debt consolidation loans are hard to come by these days as banks want you to have good credit, good cash flow, low debt and an asset to secure on. Generally speaking, one who is struggling with payments likely doesn’t have much cash flow, has more debt than they can handle, and his or her late payments may have resulted in bruised credit.
Does this mean that debt consolidation in Ontario is not possible? No, that is not the case.
If approved, a debt consolidation can:
- Reduce your debt.
- Stop interest from accumulating on your debts.
- Consolidate to a single, affordable monthly payment.
This type of debt consolidation in Ontario is called a consumer proposal and can only be administered by a Licensed Insolvency Trustee (“LIT”). A consumer proposal, if accepted and paid on time, guarantees that you will be out of debt in less than 5 years. Unlike bank loans, no interest accrues, and your LIT works with you to correct the habits that contributed to your financial problem to begin with. Alternately, if you have lots of assets or things that can be leveraged to pay your debt in full, your LIT will advise you accordingly.
To see if you qualify for a debt consolidation in Ontario, contact us for a free financial review of your personal finances.
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