Is paying all of your bills a daunting or even impossible task every month? Have the late fees, penalties, and rising interest rates on your credit cards become a cycle of debt that will never end? Debt consolidation could be the way to stop collection calls and to start controlling your finances. Salyzyn & Associates Limited is here to help you understand the process and benefits of debt consolidation as it relates directly to your income and obligations. As part of our advising services for debt consolidation for Halifax and surrounding areas, one of our Licensed Insolvency Trustees can also help you create a consumer proposal that will provide a fair offer to your creditors in consolidating and paying off your debt.
What is debt consolidation?
Debt consolidation (otherwise known as a consumer proposal) allows you to repay a portion or all of your debt interest free over a maximum period of 5 years. During that time, a Stay of Proceedings is in place and you are legally protected from collection calls, garnishments, judgements and other legal actions. You may retain assets such as your home, car, RV, ATV and investments while undertaking this legal process.
How do I qualify for debt consolidation?
Scheduling a free debt meeting with a licensed insolvency professional is the first step. A professional from our office will assess your financial situation to determine if the consumer proposal is best for you given your financial circumstances. We will determine what offer may be acceptable to your creditors so that the likelihood of it being accepted is excellent. No more Band-Aid solutions!
What types of debt can be consolidated?
All unsecured debts such as credit cards, lines of credit, consumer loans and even Canada Revenue in most cases can be included. Often Student loans can also be included although it depends on when you last ceased to be a student. Secured debts such as mortgages and car loans are not eligible for debt consolidation.
How will consolidating my debt affect my credit rating?
If you ask someone such as a credit counsellor or licensed professional to assist you with consolidating your debts your credit history will be affected. A consumer proposal reflects on your credit history for a period of three years after the proposal is finished. This does not mean that you cannot get debt during this time. It is merely a report on the history of your actions. Maintaining your mortgage or car loan during the proposal can help with improving your history.
Will I save money by using debt consolidation?
Definitely! The interest stops the day you sign a consumer proposal and the payments are affordable so that you can feel good paying your bills and save at the same time! Debt consolidation in Halifax will lower your monthly bills and allow you to plan long-term.
What are the advantages of debt consolidation versus debt settlement?
Take the guess work out of your decision making. Our experienced licensed professionals will help you feel better about your situation and assist you in the paperwork. Debt consolidation (consumer proposal) works best for people who can pay something towards their debts each month but cannot pay the normal monthly payment due to the revolving interest. It works best for people who are behind in payments and are worried that they may get garnished. It works best for those who feel responsible to pay the bills but just got behind due to a series of unfortunate events. It helps you organize a monthly budget on a go forward basis and regain financial discipline. It’s convenient consolidating several payments into one monthly amount with the assistance of a licensed professional.