You Can Reduce
HOW TO REDUCE YOUR DEBT LEGALLY
There Are Many Ways to Reduce your Debt Without Losing What You Have
YOU HAVE THESE FIVE OPTIONS TO SOLVING YOUR DEBT PROBLEMS
Contact your creditors
Refinance your payments
One way to lower your debt is make new arrangements with your creditors. Make a list of your creditors and contact each one with a proposal for one or more of the following:
- Lower monthly payments
- Longer time period to make your payments
- Lower rate of interest
Debt Consolidation Combine your debts
A debt consolidation loan is a loan (usually from a bank) that lets you repay your debts to all your creditors at once.
This means that you only have one monthly payment, often at a lower interest rate than you are paying now.
This saves you money on interest fees and lets you pay off your loan faster.
The risk is that you may run up your credit cards again and be worse off than before.
Credit Counselling services can work out a lower payment plan with your creditors for you. They charge fees despite their touted "non profit" status. The fees are usually hidden and deducted from your payments. Credit counselling plans will take years to pay off your debts.
A Consumer Proposal is a means to negotiate with your creditors for the reduction of you debts and/or extension of time for payment of their debts. The payment schedule that is created in consultation with a your advisor is based on your income, living expenses and family creditors. It prevents your creditors from taking legal actions to seize assets or garnishee wages.
The best way to get detailed information about filing an assignment in bankruptcy or a proposal is to contact a Trustee in Bankruptcy. There is no cost for this and there is no obligation to proceed with bankruptcy.
CanLaw Guide to the Law on Debt for the Layperson
On line Since 1996