If you feel that you are overwhelmed with your debts, you are certainly not alone. Many people British Columbia and Canada, in general, take on too much debt and are stuck with payments that they are unable to keep up with. You might try and battle these debts and their payments on your own but that is easier said than done.
Take a look at this timetable to see how ongoing debt could affect you.
However, you are not doomed to continue doing it all alone. Thankfully, there are options in British Columbia for those who find themselves in mountains of debt and need some assistance. One of the most popular and common options in British Columbia is debt consolidation.
Debt Consolidation is essentially when someone gets a new and larger loan, to pay off all of their smaller existing loans. By doing this, they are combining all of their debts into one, which makes handling debts much easier. For example, many people have several payments to make every month, and it can be easy to become confused or miss some of them.
Here’s what happens when you can’t make your loan payments on time.
In addition to making your monthly payment a lot easier, debt consolidation can also help you get a lower interest rate, which could save you a ton of money in the long run. This can help you pay off debt faster and get back on track to healthier finances and a better credit score.
What is a Debt Consolidation Program?
Debt consolidation programs are also a good option in British Columbia, where you’ll be working closely with a credit counsellor to ensure that you are able to enjoy a debt-free future! These programs will help you to combine all of your debts into one, simple payment and help reduce your monthly debts.
Want some information about credit counselling in British Columbia? Look here.
The main difference between a debt consolidation loans and a debt consolidation program is that a debt consolidation loan requires you to take out a loan to pay off all of your debts, but with a debt consolidation program, your debt relief provider will help you combine all of your debts into one payment. This prevents you from needing to take out a loan, and also, many prefer to work with a debt relief specialist instead of handling this alone.
Check out this infographic for even more information about how to tackle your debt.
Debt consolidation is a debt relief option that can work for a wide variety of people, with a variety of different types of debt in British Columbia. So, just what sort of things lead people to get so much debt that they need to consider debt consolidation?
Well, there are many different reasons that people get into debt in British Columbia and they include:
For a better idea of the cost of buying a house in Canada, look at this infographic.
Keep in mind that not all debt can be consolidated with a debt consolidation program and often a debt consolidation loan requires an average to good credit score. So, depending on what type of debt you have and how you accumulated it, one of the two debt consolidation options available to you may be a better choice for your needs.
To read more about consolidation and how it can help you, check this out.
When we think of debt, we always seem to assume that debt is bad. However, this isn’t really the case. While some debt is definitely bad, other sorts of debt can actually be good and helpful in certain scenarios. In an effort to differentiate the two, we’ll take a closer look to ensure you know which debts are considered good and which are bad.
Click here to see some debt consolidation options for those with bad credit.
Bad debt is bad because it pays for things that don’t provide any sort of financial return, and will actually make your finances worse over time. Also, once you bring interest into the fray, this debt becomes even worse. Examples of bad debt include consumer debt and credit card debt, payday loan debt and even car loan debt as vehicles are depreciating assets.
Trying to find debt relief from your payday loans? Read this first.
On the other hand, good debt is debt that you take on that will essentially act as an investment in yourself or your future. These include things like student loans, investment for your business, or a mortgage.
Of course, if you can go through life without any sort of debt that would save you the most amounts of money, but that simply isn’t realistic at all for most people. Also, these rules aren’t black and white, as a mortgage isn’t always a good debt, especially if you are house poor.
If you feel that debt consolidation is the debt relief option you want to go with, feel free to reach out to Loans Canada and we are confident that we can help.
The CRA takes tax debt quite seriously. Keep reading to learn everything you need to know about when you owe the CRA money.
When you’re going through a divorce debt repayment can cause significant damages to your finances. Learn how to manage your debt in a divorce.
Your dividend income is not safe from creditors. If you default on a loan, even if your dividends are in a TFSA, they are not protected.
Motivation is not the secret to getting yourself out of debt. The real hero is consistency and this is how you use it. No struggling.
Are you struggling to pay off debt and save money? Check out these tips and tricks on how to save money and pay off debt.
When it comes to paying off student loan debt in Canada, is there a way to accelerate the process and get out of debt sooner?
Are you worried about losing your RRSP in Bankruptcy? Find out how RRSPs are treated in a bankruptcy and whether you can keep them.
Debt is the last thing you want your loved ones to have to deal with in the event of your death. Here's what happens to your debt when you die
If you’re struggling with debt, you may be wondering “Is a consumer proposal worth it”? Find our if a consumer proposal is right for you.
Wondering how to qualify for a consumer proposal? Find out how to get your creditors to accept your consumer proposal.
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.
