Next to Alberta, Saskatchewan has the largest average consumer debt among its residents. While many can afford to pay off their loan without any help, others struggle in a big way with debt. Whether it’s spending too much, bad financial habits, or falling behind on payments, debt can be tough to deal with.
Just keep in mind, you don’t need to tackle your debt-related problems alone. When it comes to dealing with your debt, debt settlement in Saskatchewan could be the option you’ve been looking for.
How Does Debt Settlement Work and What to Expect From It?
Debt settlement is when you make an offer to a lender to “settle” your debt for less than the total amount. So if you feel you have no reasonable shot at ever fully paying off the debt, you can make your lender an offer to pay off a portion of it. For example, if you owe $10,000, you might make an offer to settle for $5,000.
Debt Settlement Company
Debt settlement is done through a debt settlement company, who will negotiate with your creditors on your behalf. Sometimes, these companies will offer money management or credit counselling services, but not always. They will charge you a fee and for that fee, they will handle all communication with your creditors. Remember, however, creditors aren’t forced to negotiate with the company hired, so you still might be on the hook for the total amount you owe.
How Does Debt Settlement in Saskatchewan Work?
Debt settlement works by first reaching out to a debt settlement company to work with. Next, you’ll need to meet with them and tell them about your situation, how much debt you have, why you believe you can’t pay it off, and more. After that, the company will begin communications with your creditors and start the negotiation process.
Your counsellor should have your best interest in mind and try to get you the best deal possible. Just keep remember, not all creditors will be easy to negotiate with and you may have to offer a larger settlement in order to get your account marked as paid in full. Your debt counsellor will also keep in contact with you and report back to you with updates and when they’ve reached a final deal.
Questions to Ask a Debt Settlement Company in Saskatchewan
Because there are many different companies and services that offer debt settlement in Saskatchewan, there are a few questions you should ask them before you make a decision on who to go with. While many debt settlement companies will offer this information on their website or provide documents, that isn’t always the case and it’s always a good idea to chat with the company and ask things like:
What Are Your Prices?
While it shouldn’t be the only thing that goes into choosing which debt settlement company you work with, the cost of their services will be one of the biggest concerns for you. You should ask to get the price in writing and should be sure to visit a few places and compare the prices between them. Also, your fees will be charged after the settlement, so if a company wants up-front payments, you should be a little wary.
Wondering how to qualify for a debt settlement in Saskatchewan? Find out here.
What is Your Experience Like in the Industry?
Of course, you want to work with a company that has experience in the field and knows what they’re doing. You should do things like ask for references, how long they have been around and how much debt that they have settled in the past. You can’t just believe what they say, they should be able to prove it to you.
When Will My Debt Settlement Be Completed?
The length of your settlement will take will depend on a number of different factors such as who your creditors are, how much you are trying to settle for, and how much debt you are in. Everyone’s situation is different so this might be tough for them to answer right off the start. It can be a quick process for some, but a lengthy process for others.
Read this to see more questions that you should ask your debt settlement company.
Alternatives to Debt Settlement In Saskatchewan
If you feel that debt settlement isn’t the right choice for you, it is far from the only debt relief option available to you. There are other alternatives that you can utilize, such as:
- A Debt Consolidation Loan – A debt consolidation loan is when you take out a large loan to pay off all of your smaller loans, which makes paying off debt more simple and streamlined.
- Credit Counselling – Credit counselling is when you will work with a trained professional or company with the goal of improving your credit and dealing with debt. They will teach you how to create good financial habits and help you come up with a debt payment plan. Want some more information about credit counselling in Saskatchewan? Look here.
- Bankruptcy – This should be a last resort as you will surrender almost everything you own in order to pay off your debts. You will get a fresh start, but your credit will be affected by if for several years. To learn more about bankruptcy in Saskatchewan, read this.
Of course, you need to do more research on all of these options before choosing which one to go with.
The Right Debt Settlement Plan For You
If you feel that debt settlement in Saskatchewan is right for you, feel free to reach out to Loans Canada. We are confident we can find the perfect plan to help you settle your debts.