Get Out of Debt Soon With These Tips

Thousands of Canadians file for bankruptcies and consumer proposals every year. Countless consumers need help managing debts, with many using lower-interest cards to pay off higher-interest credit card balances.

But can something be done to not drown in debt for years? Of course, there is. In fact, in Canada, there are ways to address the issue of having excessive credit card debt so it can be paid off in a certain amount of time:

So, How Can One Get Out of Debt?

There are several options available for people having trouble getting out of debt in Canada:

Learn More About Secured Vs. Unsecured Debt in Canada

There are two types of debt in Canada: secured and unsecured. Each has its own set of benefits and drawbacks, so it’s essential to understand the difference between them.

Secured debt is backed by collateral, often in the form of a house or a car. If one defaults on payments, the lender can then take possession of the asset that secures the loan. Because the lender has this security, secured debt is generally less risky, and lower rates could be offered.

Unsecured debt, on the other hand, is not backed by any collateral and is riskier for lenders. As a result, unsecured debt usually has higher interest rates.

Create a Debt Management Plan with a Credit Counsellor

Many Canadian workers are living paycheque to paycheque, so anyone struggling to make ends meet shouldn’t be embarrassed by it. What one can do to improve the situation is create a debt management plan. This debt management plan will be a way to get a handle on debts and create a repayment plan that works for the person.

There are several different ways to create a debt management plan. There is the DIY route. There’s also the option to work with a credit counselor.

If one decides to work with a credit counselor, it can be determined how much the person can realistically afford to pay toward debts each month. Credit counselors will also negotiate with creditors on behalf of the person in debt to get an agreement on lower interest rates or monthly payments.

Consider the Orderly Payment of Debts

This government-regulated program allows people to make monthly payments thanks to their creditors over a period, typically five years. To qualify for this program, one must prove that there is no way to pay debts as currently structured and that any efforts to negotiate a repayment plan have been unsuccessful.

Consider Filing for Personal Bankruptcy

While bankruptcy is a serious decision, it’s important to remember that it’s not the end of the world. In fact, for many people, it’s the beginning of a new chapter. This will give you a chance to start fresh with your finances.

Before filing for bankruptcy, it is crucial to find a bankruptcy attorney. A bankruptcy attorney will help navigate the bankruptcy process and ensure everything is done correctly.

Conclusion

With the right strategy and the help of a trusted debt consultant in Canada, there is no reason for anyone with debt not to achieve financial freedom. 

For reliable debt solutions that are tailored to help every client reach financial freedom, Debt Helpers is the name you should trust. From consulting services to debt solutions, experts from DebtHelpers.ca team offer only the best debt management solutions. Contact our debt consultants today and learn how we can help you!