- Free consultation
- Reduce your monthly payments
- Speak with a debt expert
- Stop collection calls
- Take control of your debt
Like many other cities and provinces in Canada, Manitoba citizens carry a lot of debt from month to month. While their debt levels (at least in terms of consumer debt) are among the lowest in the country, they do in fact have one of the highest levels of delinquencies, which means lots of Manitoba consumers are struggling to pay off their debt on time. Instead of continuing to struggle to make many small debt payments each month, there is another option, called debt consolidation.
Searching for some debt solutions? Check out credit counselling in Manitoba.
When discussing debt consolidation, there are two different options for consumers in Manitoba. Depending on your debt levels and overall financial health, one may be a better option for you than the other.
When an individual in Manitoba takes out a large loan, with the sole purpose of using this loan to pay off all of the other small debts that they might have, that loan is called a debt consolidation loan. Not only will this make keeping up with payments easier (as you will only have one now), debt consolidation loans can often grant you a better interest rate, too. However, you must remember that this doesn’t eliminate your debt, it just shifts it around, so you still need to put in the work to pay it off.
If your application for a debt consolidation loan gets denied, read this.
These work by an individual enrolling in a plan or program that helps to consolidate their loans. In this option, instead of taking out a loan to cover your debts, your debt relief provider in Manitoba will consolidate your debts into one monthly payment. While enrolment can negatively affect your credit, it will keep you from having to take out another loan.
Check out this infographic to learn how to create a plan to tackle your debt.
So just how do people in Manitoba find themselves in the type of debt that would require the assistance of a debt consolidation loan or program? Well, there are many different reasons and most of them have to do with bad financial habits and behaviours. These include:
Simply put, many people in Manitoba just manage their money poorly and find themselves in debt.
Whether it’s from taking on too many loans, gambling, spending too much, eating out too much, or anything in between, racking up debt is often far too easy for many consumers in Manitoba.
Wondering how to manage your money successfully? Find out here.
Living within your means is incredibly important, unfortunately, a person’s pride can often get in the way of that. Buying things you can’t afford simply because everyone else is or because you want to look a certain way is one of the easiest things you can do to create debt problems for yourself.
Look here for some helpful debt management tips.
Having self-control when it comes to spending is incredibly important. While we would all love to buy a new pair of shoes, a new car, or the new video game whenever we want, we have to be disciplined. We will eventually be held accountable for the spending we have done, so don’t let a credit card convince you to spend on something you wouldn’t spend cash on.
In addition to the financial habits and behaviours mentioned above, there are also some unfortunate and unforeseen things that can take place to lead people in Manitoba to fall into debt, such as:
While people might often think that debt is always a bad thing, that actually isn’t the case. There is both good debt and bad debt.
Basically, if the debt is helping you in some way, providing a service or increasing your potential, it can be seen as good debt. This includes things like a mortgage, a student loan, or an investment in your company.
Interested in a business loan in Manitoba? Check this out.
Bad debt is considered anything that doesn’t help you grow any sort of asset or help further you in your career or life. These types of debt generally include things like credit card debt and even car loan debt. While a car loan gets you a car, which is good, a car is a depreciating asset.
Of course, these are just generalizations, as there is always a grey area when it comes to debt. For example, while a mortgage provides a necessary service to many, they aren’t always “good loans” especially if people spend too much on them and become house poor. So whether a debt is good or bad will largely depend on your own unique situation.
If reading this article has helped you decide that debt consolidation is the right move for you, don’t hesitate to reach out to Loans Canada, as we can help match you with the right service provider in Manitoba.
Debt consolidation loans, debt management programs, debt settlement, consumer proposal and bankruptcy: Find out which option is right for you.
Learn about the statute of limitations in Canada and how it can protect you from your creditors wanting to take legal action against you.
Predatory lending is a problem many borrowers face when trying get a loan with bad credit. Here's how you can protect yourself.
Does bankruptcy affect your spouse in Canada? Find out the implications of declaring bankruptcy when you have a spouse.
Everything you need to know about how a foreclosure will affect your credit score.
Are you struggling to make your credit card payments on time? Learn how you can defer your credit card payments.
Struggling to keep up with your debt load? We have all the tips and tricks you need to know how to get out of debt in Canada.
Are you a Canadian student struggling to pay off student loan debt? If so, you may be able to resolve the situation by getting loan forgiveness.
You applied for a debt consolidation loan to finally start tackling your debt but then you got denied. Now what?
Everything you need and want to know about the statute of limitations in Ontario for debt.
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.