- Free consultation
- Reduce your monthly payments
- Speak with a debt expert
- Stop collection calls
- Take control of your debt
When you don’t have great debt management skills, it can lead to financial hardship, especially when you consider how expensive it can be to live in the city of Winnipeg. As such, a significant amount of consumer and household debt can end up on your plate. If that’s the case for you, a debt settlement might be just what you need.
Essentially, a debt settlement is when you strike up a deal with your creditors, the terms of which will allow you to pay off a significant portion of your outstanding debt in a lump sum. If the deal goes through, you should be able to “settle” your bill for less than you actually owe.
While not all debt settlements in Winnipeg will be considered acceptable, some creditors will take the deal because they would rather get some of their money back than lose it all, which might happen if you declared personal bankruptcy. One of the only problems with a debt settlement is knowing when the right time to apply is.
Only consider a debt settlement when you are:
Can you get a debt collector to settle for less than you owe? Find out here.
As we said, not all Winnipeg creditors or debt collectors will accept your debt settlement. If they think the deal is unfair then you might be out of luck. Nonetheless, if you’re sure that a debt settlement is the way to go, there are ways that you can get them to accept, as long as you’re willing to put in the effort and present a good deal. This can be done in two ways:
If you happen to be a good negotiator, you can always reach out to your creditors by yourself and try to work out a debt settlement. This can be tricky, especially if you’re not prepared to make your case. However, it can be done as long as you take some precautionary measures, such as:
Want to know more about DIY debt settlement? Be sure to read this.
If you don’t consider yourself a good negotiator or you’d prefer to have a professional guide you through the process, you can also hire a debt settlement company in Winnipeg to administer the deal for you. They may even be able to get a more reasonable amount knocked off your outstanding balance. Just the same, you must only choose this route if you’re willing to take precautions, such as:
Take a look at some questions that you should ask a debt settlement company.
There are a few important things to consider when you choose a debt settlement, whether you do it on your own or with a professional company in Winnipeg. Additionally, there are a few other advantages and disadvantages to the debt settlement process that may affect your decision, so be sure to take them into account.
Do you know the true cost of borrowing? Check out this infographic.
If you’re about to apply for a debt settlement in Winnipeg, it’s best to ask your creditors or debt settlement company about which debts are actually eligible for the process, as unsecured debts (no collateral involved) are generally the only type.
Click here to learn the differences between unsecured and secured debt.
If you’ve determined that a settlement isn’t the best choice for you, there are a few other alternatives in Winnipeg you can pick from. However, know that each one is also going to have a few pros and cons that may affect your financial situation. So, make sure to talk to a financial expert before you choose any of the following:
Note: While a consumer proposal or a bankruptcy can be effective at eliminating most of your unsecured debt, they can have a serious impact on your credit, finances, and assets. Only choose one of those alternatives if you have no other choice.
Finally decided on a debt settlement in Winnipeg? If so, prepare yourself by talking to Loans Canada first. We can give you all the information you need about the process. Contact us today or apply below!
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