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09.14.2020 / Budgeting « Back to all articles

Pandemic Panic - Debt-Relief Options
Pandemic Panic - Debt-Relief Options

Everyone who felt burdened by debt has considered debt relief options at least once. It is only natural to wonder if the many ads promising you an instant solution to your problem could prove true. Unfortunately, the solution is not always instant, and, in some cases, it can make your financial woes even worse. The pandemic and the resulting job loss for millions of Canadians has caused even more people to consider available options, but are any of them right for you? 

 

DIY Debt Relief 

If you have fallen behind on bills during the pandemic, then reach out to your creditors as soon as possible. This includes not just your mortgage or car loan company but even your landlord. Some entities might feel willing to work with you to pause payments temporarily, accept partial payments or reduce interest rates. You might also consider transferring your existing balances to a zero-APR debt consolidation account. 

 

Bankruptcy 

One of the most common ways to get rid of debt is to file for Chapter 7 or Chapter 13 bankruptcy. If you file for Chapter 7, it can erase much of the consumer debt you have acquired in months with some exceptions. However, it might require giving up your assets. Chapter 13 allows you to reorganize your debt and continue to make payments for three to five years. At the end of this period, the court might discharge the remaining balance. Note that bankruptcy remains on your credit report for seven to 10 years. 

 

Debt Management 

If you like the idea of reorganizing your debt but would rather not go through the court process and risk your credit score, debt management might suit your needs. This debt relief option helps you pay off unsecured debts but often with longer terms and lower interest rates. While this plan does not directly affect your credit score, closing out or paying off your existing debts can, especially when you close out your installment loans. Note that you might need a good credit score to secure this option. 

 

Debt Settlement 

If your credit score has already taken a big hit due to delinquencies, then debt settlement might seem like an attractive idea. In this instance, you begin to withhold money from creditors and then you offer a lump sum after a few years, which is less than the original amount owed. It can take years to accomplish this. During that time, all the accounts involved will continue to show delinquencies, thereby causing your credit score to suffer. Most financial experts recommend filing for bankruptcy over this route. 

Whether your debt issues are caused by the current global pandemic or not, there are multiple options available to help you consolidate and reduce your financial burdens. Don't wait, get the debt relief you need today. 

09.28.2020 / Borrowing

Should You Refinance Your Home?
Mortgage rates have reached record lows. With the economy now coasting into a recession, it is only natural that you…

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Loans from $120 to $15,000. Get funded as soon as today!

09.14.2020 / Budgeting « Back to all articles

Pandemic Panic - Debt-Relief Options
Pandemic Panic - Debt-Relief Options

Everyone who felt burdened by debt has considered debt relief options at least once. It is only natural to wonder if the many ads promising you an instant solution to your problem could prove true. Unfortunately, the solution is not always instant, and, in some cases, it can make your financial woes even worse. The pandemic and the resulting job loss for millions of Canadians has caused even more people to consider available options, but are any of them right for you? 

 

DIY Debt Relief 

If you have fallen behind on bills during the pandemic, then reach out to your creditors as soon as possible. This includes not just your mortgage or car loan company but even your landlord. Some entities might feel willing to work with you to pause payments temporarily, accept partial payments or reduce interest rates. You might also consider transferring your existing balances to a zero-APR debt consolidation account. 

 

Bankruptcy 

One of the most common ways to get rid of debt is to file for Chapter 7 or Chapter 13 bankruptcy. If you file for Chapter 7, it can erase much of the consumer debt you have acquired in months with some exceptions. However, it might require giving up your assets. Chapter 13 allows you to reorganize your debt and continue to make payments for three to five years. At the end of this period, the court might discharge the remaining balance. Note that bankruptcy remains on your credit report for seven to 10 years. 

 

Debt Management 

If you like the idea of reorganizing your debt but would rather not go through the court process and risk your credit score, debt management might suit your needs. This debt relief option helps you pay off unsecured debts but often with longer terms and lower interest rates. While this plan does not directly affect your credit score, closing out or paying off your existing debts can, especially when you close out your installment loans. Note that you might need a good credit score to secure this option. 

 

Debt Settlement 

If your credit score has already taken a big hit due to delinquencies, then debt settlement might seem like an attractive idea. In this instance, you begin to withhold money from creditors and then you offer a lump sum after a few years, which is less than the original amount owed. It can take years to accomplish this. During that time, all the accounts involved will continue to show delinquencies, thereby causing your credit score to suffer. Most financial experts recommend filing for bankruptcy over this route. 

Whether your debt issues are caused by the current global pandemic or not, there are multiple options available to help you consolidate and reduce your financial burdens. Don't wait, get the debt relief you need today. 

Need a
Loan?

Loans from $120 to $15,000. Get funded as soon as today!

09.28.2020 / Borrowing

Should You Refinance Your Home?
Mortgage rates have reached record lows. With the economy now coasting into a recession, it is only natural that you…