- Free consultation
- Reduce your monthly payments
- Speak with a debt expert
- Stop collection calls
- Take control of your debt
Even though there are types of debt that you can actually benefit from in Montreal, they can also damage your financial health when they become too numerous and expensive to deal with properly. If you’re currently in that kind of situation, a drastic debt management technique may be necessary in order to avoid the debt collection process or even worse, legal consequences.
In that case, a debt settlement might be an appropriate path for you. Keep reading if the idea sounds appealing and you’re interested in learning more about this technique.
While the procedure won’t get rid of everything you owe, a debt settlement involves contacting your creditors to strike a deal that frees you from a significant portion of your outstanding consumer debt through one lump sum. This can be done in two ways:
If the idea of a debt settlement is too confusing or you’d simply prefer the help of a professional to see the process through to completion, enlisting a debt settlement company might be the way to go. Essentially, one of these companies can reach out to your creditors on your behalf and attempt to broker a deal that allows you to pay a large percentage of your debt total, rather than the full amount.
Looking for more ways to conquer your high-interest debt? Check these out.
Although you can also try this on your own, a good settlement company will have experienced negotiators who may be able to secure an even lower balance than you would alone. However, before you hire one of these companies, be sure to take a few precautionary measures, such as:
Be sure to ask your debt settlement company these questions.
If you don’t want to deal with the risks of hiring a debt settlement company, you can also try to negotiate a debt settlement in Montreal on your own (for information on this, click here). While this may not be as easy as working with a professional, you can potentially initiate a similar deal if you can prove that you have no way of paying back your full debt. If you’re convincing enough, they may give you a fair deal, rather than watching you declare bankruptcy, which would result in a total loss for them.
Just the same, there are a few important things to consider before you try a DIY debt settlement, such as:
When it comes to debt settlement in Montreal, there’s another factor to take into account; the type of debt you’re trying to settle. What many borrowers might not know is that only certain kinds of consumer debt are eligible for the process. Generally, any debt that has been collateralized by an asset, such as your home or car, as well as some legal or government appointed debts, cannot be covered. We’ll give you a few examples:
No debt solution is without some advantages and disadvantages that make them both right and wrong for various financial situations. A debt settlement might be appropriate for someone else, but not for you, which why it’s essential to talk to an advisor before you attempt the process. Otherwise, look at some of these pros and cons, so you’ll have an easier time making your decision.
Click here for some more debt management tips.
Maybe your outstanding debts are serious enough, but you don’t want to try a debt settlement in Montreal or aren’t eligible for the process. In that case, there are a few alternative solutions that you can seek out, including but not restricted to:
If you’re still not sure whether a debt settlement in Montreal is appropriate for your situation, there are a few clear signs that might indicate otherwise. For instance, a debt settlement may be best when:
Click here to see how a debt settlement can affect your credit.
If you’d like to try a debt settlement in Montreal or simply want more information about the process, don’t hesitate to contact us. We’re here and committed to helping you with whatever debt solutions you need!
Everything you need to know about what a debt-to-income ratio is and how it affects your ability to get approved for the loan you want.
Wondering how the rich get wealthy? Debt is often used to make money and get rich. Find out how debt is used to make money.
Debt consolidation loans, debt management programs, debt settlement, consumer proposal and bankruptcy: Find out which option is right for you.
Learn about the statute of limitations in Canada and how it can protect you from your creditors wanting to take legal action against you.
Predatory lending is a problem many borrowers face when trying get a loan with bad credit. Here's how you can protect yourself.
Does bankruptcy affect your spouse in Canada? Find out the implications of declaring bankruptcy when you have a spouse.
Everything you need to know about how a foreclosure will affect your credit score.
Are you struggling to make your credit card payments on time? Learn how you can defer your credit card payments.
Struggling to keep up with your debt load? We have all the tips and tricks you need to know how to get out of debt in Canada.
Are you a Canadian student struggling to pay off student loan debt? If so, you may be able to resolve the situation by getting loan forgiveness.
Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.