The average household debt of Canadians is over $75,000. It means most Canadians suffer from dire debt consequences, including stress, hypertension, high blood pressure, etc. Living constantly under stress robs the charm of a happy life, and restoring it, we are going to give a comprehensive guide to overcoming financial challenges in Canada by mastering the best relief tricks and tactics in this post.
What Is Debt Relief?
Debt relief refers to any method of reducing or eliminating debt. For Canadians, particularly people in Calgary, Edmonton, Lloydminster, Alberta, and other regions, some options are available to get debt relief. Those options are:
If you combine all your loans into a single loan with a lower interest rate, you will feel some relief in payments within your budgetary constraints.
Suppose you or your reliable representative negotiate with your creditors to bring down the interest rate for your loans on monthly payments. It seems a good option when paying a high-interest rate for your loans.
Suppose you have a large amount of debt; you can settle debts by paying less than the original amount you owe. It is possible with only certain types of debts, such as credit cards, student loans, mortgages, and taxes. Of course, it can spoil your credit score and reputation in the market.
There is no government-backed debt forgiveness program, but you can take one of the two options to get debt relief.
It is the worst option because the chances are higher that you will lose your assets. After all, a Licensed Insolvency Trustee (LIT) can sell your assets to pay your debt. It can destroy your credit score and borrowing capacity.
Consumer Proposal Service:
It is a nicer option than bankruptcy because it is a real debt forgiveness option, as lenders forgive some portion of your debt to provide you some relief in payments/installments. Consumer Proposal Service prevents you from losing your assets, and it depends on the will of lenders, repayment plans, and previous history.
How to Choose the Right Debt Relief Option for You in Calgary, Edmonton, Lloydminster, & Alberta?
Here are some common factors affecting your decision-making process to choose a suitable debt relief option for you.
- The size of debt you own.
- Your overall income.
- Your all expenses.
- Your credit scores.
- Your willingness to make sacrifices.
How to Get Out of Debt Quickly?
Here are some tips to get out of debt quickly.
- Monitor closely where money comes and goes and prepare the budget accordingly.
- Make a list of your balance, interest rate, and payments you pay for all debts.
- Pay debt with a high-interest rate first.
- Make total or more payments of your monthly installments, not minimum one.
- Cut excessive expenses and focus on saving.
- Get help from experts at Credit720 to get out of debt quickly.