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While lots of Canadians have debt, none carry more consumer debt on average than Albertans. In fact, the average Albertan carries nearly $30,000 in debt. While many of those who carry that much debt can afford to pay it off, this isn’t always the case.
For some facts about loans in Alberta, click this link.
Many people in Alberta simply bite off more debt than they can chew and are stuck dealing with the consequences. These consequences can range from a ton of late fees to defaulting on loans to a plummeting credit score. If you find yourself stuck with a ton of debt and are not sure how you can pay it off, a debt settlement might be the best option for you.
Here’s how ongoing debt could affect you.
What is Debt Settlement?
A debt settlement is when a borrower (or a company on behalf of the borrower) will reach out to a lender and make an offer to “settle” the debt for less than the total amount. For example, if you owe $10,000, you may make an offer that you are only able to pay $5,000 of that back.
Looking for even more information about paying down debt? Take a look at this infographic.
What to Expect from Debt Settlement in Alberta
While this sounds great, you need to be sure to temper your expectations when it comes to debt settlement. It can be a great way to save some money on your debts, but most debt settlement offers are not accepted unless you are able to prove that you have no way to fully pay off your debt.
Wondering how you can rebuild your credit while you’re in debt? Find out here.
While you can send these offers for free, you may be better suited going with a debt settlement company in Alberta, but they can often charge a fee. The process for debt settlement can take a while, so don’t expect to have it done in a matter of days.
Also, you should expect the debt settlement to show up on your credit report for years to come, so be aware of the potential risks before you decide to go with it.
Questions to Ask a Debt Settlement Company in Alberta
If you decide to go with a debt settlement company in Alberta, there are some things/questions you should be sure to ask them before choosing which to go with. We’ll now take a closer look at these important questions, or at least a few of them.
How Much Do Your Services Cost?
Of course, this is one of the most important things to ask as if you are requesting help with your debt, you likely don’t have a ton of money to throw at a debt settlement company. The answer you will receive will differ from company to company in Alberta and will depend on a variety of factors. Fees can be paid upfront, but some will take payments later on as well. Either way, you’ll want it in writing before you agree or sign anything.
Read this to learn how to qualify for a debt settlement.
What Does Your Industry Experience Look Like?
Experience is incredibly important when hiring a company in Alberta to negotiate for you. Because of this, one of the first things to ask is how long they have been doing this sort of thing, and how successful have they been. Don’t simply trust their words, as they should be able to prove or verify all of the claims they make.
Would you rather negotiate a debt settlement on your own? Try reading this.
What Alternatives do I Have in Alberta?
That’s right, debt settlement isn’t the only way to help your debt problems. And any good and honest debt settlement company should be willing to explain and share other options with you and allow you to ultimately decide which way you should go.
Ever wonder what the true cost of borrowing is? This infographic is for you.
Alternatives Options in Alberta to Debt Settlement
Speaking of the alternatives to debt settlement, it is important that you familiarize yourself with them as well, to ensure that you are making the right choice. Each option and alternative available in Alberta has its own pros and cons and what is right for one person might not be the best thing for another.
Take a look at some other debt management products for credit users.
There are a variety of different debt settlement alternatives available in Alberta such as:
- Debt consolidation
- Credit counselling
- Consumer Proposal
The Best Debt Settlement Plan For You in Alberta
If you feel that debt settlement is something you want to try or consider, don’t hesitate in reaching out to Loans Canada. We are confident we can find the right solution to your debt problems.