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Resources relating to credit and debt

How To Qualify For a Consolidation Loan

Consolidation loans are generally accepted as the most fundamental solution for high-interest debt and credit maintnance. Usually, these consolidation or "debt pay-out" loans are structured in a manner such that the normal overall monthly minimum payments are slightly reduced, depending on the term of the loan. In situations of high-interest balances and/or recently delinquent accounts, Canada Debt Settlements will always recommend to the client to apply for a consolidation loan prior to other options, where the expectation of an approval is reasonable:

  1. Sufficient income* in relation to overall debt (see Total-Debt-Servicing Ratio)
  2. Reasonable Credit Rating History (see Credit Rating System & Beacon Score)

Debt Consolidation - Will It Reduce My Monthly Payments?

Qualify for Consolidation loans in Canada - make your loan go further to pay down more debtsIn the right situation, a debt-consolidation loan could be the best way to control consumer debt interest levels and maintain or repair credit history.

But what exactly is a consolidation loan?

In its most basic form, a consolidation loan is one where a bank (or another lending institution) provides you with a loan specifically to pay-out other credit debt. Often, the debts being paid-out, or "consolidated", are usually high-interest credit balances, accounts in the arrears or both. The monthly minimum payments are also consolidated in one monthly payment.

Bankruptcy Exemptions by Province

When a person files an Assignment in Bankruptcy, a portion of their take-home pay may be payable to the Trustee for the benefit of all creditors. The actual amount payable depends on several factors, such as the take-home pay of the family unit, the number of people in the family and whether the family has non-discretionary expenses such as child care or child support. Any questions you have with respect to surplus income can be addressed with us if you require clarification.

Bankruptcy information for Creditors

Creditors will be provided with, among others, the following two documents:

  • Statement of Affairs — The bankrupt's financial statement or balance sheet of assets and liabilities showing the estimated value of assets and the names and addresses of creditors and the amounts owed. This is usually presented at the beginning of the process.
  • Statement of Receipts and Disbursements — A statement detailing the receipt and disbursement of funds, interest received, fees charged by the trustee, all dividends distributed to creditors and particulars of property that is not sold. This is usually presented at the end of the process.

Information for the Debtor/Bankrupt

A debtor is a business or person that is unable to meet debt obligations. A bankrupt is a business or person that has declared bankruptcy.

Both the debtor and bankrupt's primary duties are to:

  • Attend the first meeting of creditors (if a meeting is requested by the creditors)
  • Attend two credit / debt counselling sessions (for bankruptcy and consumer proposals)
  • Advise the trustee in writing of any address changes
  • generally assist the trustee in administering the estate or proposal

Bankruptcy - Sometimes it's your only option

The Truth About Bankruptcy and Debt Consolidation

Often we are faced with towering debts that may appear unconquerable. And often times still, the challenge may be just that. Circumstances for financial hardships are as plentiful as the individuals who face them. It is not always a matter of blame. The need for a fresh start may be overwhelming.

There Are Advantages of Credit Counselling Services

In certain situations, credit counseling is the only means to prevent phone calls from collection agencies and dealing with other debt-recovery practices. As with all programs, it is essential to review all available options before deciding on the right one to serve all of your individual needs. Part of a complete review would include a diligent check of the credit-counselor's credibility and more importantly, licensing.

Credit Counseling - How it works

There are no shortages of companies and even "not-for-profit charities" offering their versions of "credit counselling". Generally, the idea of credit counseling is based on the credit-counseling agency taking control of the client's credit accounts and arranging for a new debt repayment plan. The credit counselor would request of the creditors, that based on the financial hardship of the client, they should freeze the interest (or at least reduce it) so that the re-payment of the debts may be accelerated.

The greatest benefit of credit counseling is that the client may no longer have to deal directly with the creditors or their collection agencies.

Consumer Proposal Risks - Will I qualify? -What happens if I'm not accepted?

Among the many risks of filing a consumer proposal are that it could be declined by your creditors. In this event, an R7 orderly payment of debt program would be reflect on the credit bureau, even though it was not approved! Of course if the proposal is approved, the same rating would reflect. It will drop off the public records within 3 years of the last payment of the consumer proposal. Until this time, obtaining unsecured credit will be virtually impossible.

Advantages of Filing a Consumer Proposal - Principal Debt Reduction!

There are some great advantages to filing a consumer proposal including:

  • Reduced Principal Debt - not just interest reduction
  • Lower overall monthly payments - and the amount you pay back is Interest Free!
  • Stop all Collection and Creditor Calls - stop the harassment by bill collectors
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Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

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