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Those in Regina and the rest of the province of Saskatchewan make among the highest average individual and household incomes in the country. Unfortunately, while they make a lot, they also borrow a lot. Stats show that debt loads in Saskatchewan are high and while many make enough to live with this high amount of debt, others don’t.
If you cannot afford to make debt payments each month, bad things start to happen. Your savings will deplete, your credit score will plummet and securing new loans or financing will become difficult. If you find yourself experiencing these types of problems, it might be time to look at some professional debt relief options.
One of the most popular of these options is debt settlement. Debt settlement in Regina is where an individual will make an offer to “settle” their debts with lenders for less than the total amount, which will save them money while eliminating their debts at the same time. For example, if a person owes $12,000 to a lender, they might offer to settle the debt for $7,500.
Are you looking for information about debt settlement in Saskatchewan?
How Does Debt Settlement Work?
If you are dealing with a lot of debt and you don’t see a way that you will be able to pay it off in full, debt settlement might be right for you. The first step to settling your debt in Regina is to look for a debt settlement company. They will work with you closely and come up with what they believe is not only a fair offer for you but also a fair offer for your lender.
Once an appropriate figure has been decided on, you will send the offer to your lender or lenders, and wait for them to hear back. If they deny, then you can go back to the drawing board, but if they accept the offer, you will carry out in paying them the agreed upon amount.
While you can set up and offer a debt settlement on your own, it is generally advised to do it through a debt settlement company to ensure the offer has the highest chance of being accepted.
Thinking of negotiating a debt settlement on your own? Read this to know how.
While this is all great for the borrower (as they don’t have to pay off their debts in full), why would a lender agree to something like this? Well, the lender would rather have some of the debt paid off than none of it getting paid off and having to chase around a borrower, which can be costly and time-consuming.
Questions to Ask a Debt Settlement Company in Regina?
As you could imagine, the debt settlement company you elect to work with could be the difference between your offer being declined or accepted. As a result, you need to be sure to put a lot of thought into the decision and shop around to different options in the area. When considering different companies, there are a few questions that you should ask. These include:
How Much Does Debt Settlement in Regina Cost?
While the price isn’t the only thing to think about, it is definitely one of the most important. You are already going through some financial hardships, therefore you should be sure to try and find a good deal with a fair price. Either way, fees will be charged once the debt has been settled, so don’t worry about paying a fee upfront.
Be sure to watch out for debt collection scammers.
What is Your Experience in the Industry Like?
Of course, you want to work with a company that has settled debts successfully in the past. They should be able to prove their experience in the space and if a company cannot verify it has had success, you should look elsewhere.
How Long Will the Debt Settlement Process Take in Regina?
This will depend on a number of factors such as how much you are settling for and who your creditors are. Each debt settlement in Regina is different in length so it is tough to predict beforehand. Once you come to an agreement with creditors, you’ll have a better idea on time frame.
What Alternatives Do I Have?
Any good and reliable debt settlement company should be willing to talk about the other available debt relief options before sending in your settlement. Other options include bankruptcy, credit counselling, and debt consolidation, just to name a few. The option that is right for you will depend on your unique financial situation and needs.
Read this for some information about debt consolidation.
How Does Debt Settlement in Regina Affect Your Credit
Now, while debt settlement is great at saving you money, how does it affect your credit? Well, as you could imagine, debt settlement is going to hurt your credit. However, just how much it hurts will depend on your unique situation. The best thing for you (and your credit) is for your lender to write off a high amount when settling as it will have less impact on your credit.
Click here to learn a few ways of improving your credit this year.
Also, it is important to remember that settling this debt will not remove the previous late payments from your credit report, but will just ensure that no more occur in the future as the debt has been settled.
However, this shouldn’t deter you from considering a debt settlement. Sometimes it is ultimately the better choice to settle your debt. Sure, your credit will be bad for a while, but you will be rid of your debt and will be able to start fresh and begin to rebuild your credit.
The Best Debt Settlement Solutions
Are you struggling to manage your debt load in Regina? Are you looking for the right solution to help you get back on track? Loans Canada can help by matching you with the best debt settlement service provider in Regina. Get in contact with us today!