Best Debt Relief Solutions
Getting Rid of Your Debt
Most people face debt challenges at one point in their life or another. When such a challenge occurs, it is a good idea to obtain professional help rather than suffer in silence and be stressed out. This is especially true considering that there are multiple solutions that are available.
Chande & Company Inc. is a Licensed Insolvency Trustee and everyday we help people take back control of their debt challenges and get a fresh start. We often get called debt experts. This should come as no surprise because providing debt relief solutions to individuals is all we do. If you are ready to get out of debt, we are here to help.
Be Careful Who You Are Dealing With
Before we cover the various debt relief options that are available to you, a word of caution. There are a lot of scams out there that take advantage of people going through debt challenges. Know who you are dealing with. In Canada, only Licensed Insolvency Trustee’s (like Chande & Company Inc.) can file either a consumer proposal or a bankruptcy. No other person or organization is permitted to do so. Furthermore, do not pay anyone any upfront fees when discussing your debt challenges. We offer free consultations to anyone that would like to go over in a personal, no obligation, meeting of the various debt relief options that are available to them.
Every person has a unique reason for why they find themselves in a difficult position in repaying their debts. Some common reasons include: sudden job loss, marital breakdown, health related problems, business challenges are just a few. Ready to get started? Great! Fill out the form just below and we will contact you to get the process of being debt free started.
DEBT RELIEF OPTIONS
Consolidation loan (aka debt consolidation)
This type of loan combines many small loans and debts into one larger loan. The intention is to combine multiple loans into a single payment that is more manageable and often more affordable since the single large loan has a lower interest rate. This is an effective strategy if you have many high interest debts such as credit cards and/or pay day loans. The one problem, from our perspective, is that you still have all the debt that you had before, it is just packaged differently. Keep in mind that you will need to apply for this larger loan which could be an issue if you have a poor credit score or a history of late/missed payments.
Debt Management Plan
These plans are offered by a credit counselling agency where you make a single payment to the agency. The total debt is repaid for a period of up to 5-years. The benefit comes from the interest that is often cancelled. In some instances, this is enough to get a person back in a better financial position. Under this plan, the entire debt gets repaid. There is no debt relief.
Debt Settlement
This is when you (or a third party on your behalf) make an informal offer with a creditor(s) to settle the amount that you owe them. You need to be careful as these arrangements are informal and therefore not guaranteed. Once you factor in the fee charged by the agent you will find that the savings is not that much. We do not recommend this approach as it is often not legally binding and in many cases the agent just refers you to a trustee (for a fee). One final point, you do not need to pay anyone a fee to meet with a trustee.
Consumer Proposal
A consumer proposal is a formal, legally binding agreement between you and your creditors in which you often pay back only a portion of the debts (with no interest). Most proposals are filed for a period of up to five years and can be paid back early without any penalties. For more information on consumer proposals, click here.
Personal Bankruptcy
Bankruptcy should be considered a last option. However, in some circumstances it is the most suitable option for an individual. It is often the quickest and cheapest way to get out of debt. In many instances, you can complete the bankruptcy and be debt free in as little as 9 months. For more information on bankruptcy, click here.
As you can see, there are many debt relief solutions that are available, but which one is right for you? Speaking with a Licensed Insolvency Trustee, such as Chande & Company, is likely the best person to speak with, when it comes to evaluating which debt relief option is best for you.
Final Word On The Best Debt Relief Option
Ultimately, the best debt relief option should help get rid of your debt challenges. Getting one (large) loan to consolidate many smaller loans does not actually get rid of the debt. It just repackages the debt. Additionally, getting rid of some debts but leaving other debts unpaid also does not eliminate your debts. Want to know how to get rid of your debts once and for all? Contact us today for a FREE, no obligation, consultation. We can help you take back control of your debts and get a free start. It all starts with the first phone call or email.