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When you owe money to many different creditors, managing monthly payments can be overwhelming, and it’s easy to feel like you may never get ahead. With debt consolidation services from Smythe Insolvency, individuals in British Columbia who owe various creditors can consolidate debt, combining them into one manageable monthly payment to get themselves out of debt. As Licensed Insolvency Trustees, we are committed to finding the best options for dealing with debt. Money problems can happen to anyone. We maintain complete confidentiality with our clients. Insecurity or embarrassment shouldn’t be reasons to keep anyone from obtaining the financial assistance they need. Contact our experienced team at any one of our convenient office locations in British Columbia for a free debt consolidation consultation today.
Debt consolidation is a manageable debt relief program that provides you a way to pay off debts without juggling multiple payments. By taking out a loan and paying off all of your debts at once, you can focus on just one loan repayment. While it won’t reduce the amount of your debt, you may save money on your debts if the interest rate of the loan is lower than the average interest rate of all your outstanding debts. Consider a consolidation loan to help pay off debts owed to credit card companies, retail stores, public utility companies, unsecured personal loans, or taxes. Combining these debts is advantageous. Everyone’s personal situation will be different, but the advantages include:
Taking out a consolidation loan isn’t the only option to consolidate your debts. Every individual’s financial situation is unique; therefore, not every solution will make sense for every circumstance. Our Licensed Insolvency Trustees will learn about your specific debts and finances to help you decide on the best solutions for consolidating credit. Options other than loans include:
Loans to pay off debt consolidation come in two forms: secured and unsecured. While both types of loans achieve the same goal of paying off multiple debts and consolidating money owed into one payment, there are differences between the two. The interest charges are generally lower on a secured loan. This is because borrowers offer up an asset that can be used as collateral against a secured loan. If the borrower defaults on a payment to the lender, the lender may sell the asset to pay for the debt. An example of an asset in a secured loan could be real property if a borrower uses a home equity line of credit or refinancing to acquire a loan. If a borrower does not have an asset to offer as collateral, then the consolidation loan is unsecured. Unsecured consolidation loans tend to have higher interest rates due to no asset being available for collateral.
The ultimate goal for choosing debt consolidation is to provide an opportunity to pay off debt without incurring additional bills or hurting your credit score. As with all of our insolvency services, we work closely with every client to make sure each one makes the best decisions for their financial situation. When deciding what debt consolidation service is right for you, keep these important tips in mind:
You might not even be aware that there are options for legal debt consolidation that do not require taking on more debt. Non-borrowing options in British Columbia include:
A consumer proposal is a formal offer made to your creditors to repay your debt. In the proposal, you make an offer to your unsecured creditors to repay them, usually settling your debt for less than the full amount you owe and repaying on a schedule that works best for you. After you complete the proposal, your debts are forgiven.
A Debt Settlement Plan is another non-borrowing option to consolidate certain types of debts. A DSP is typically facilitated by a debt or credit counsellor. They will review your financial situation with you and arrange a full-payment plan with your creditors for your debt that is eligible. They’ll also negotiate an interest freeze, if possible.
All Licensed Insolvency Trustees at Smythe Insolvency are officers of the court dedicated to ensuring your rights and your creditors’ rights are maintained throughout the debt consolidation process in British Columbia. When you choose to work with us, you can be sure that you’re well represented in all matters related to insolvency. We work directly with your creditors, stop the harassing phone calls, and reduce the amount of financial stress in your life. Contact us to schedule your free debt consolidation consultation today. With over 10 office locations in British Columbia, you’ll find a convenient location near you.