Debt Forgiveness From Creditors is Possible
Every debtor who is experiencing struggles in paying their debt, dream about acquiring debt forgiveness from creditors. This means you will not be required to pay a portion or even the full amount of the money you owe to your creditors. Does this sound too good to be true? Debt forgiveness is possible for those who are qualified.
How will you know if you are qualified for debt forgiveness?
You cannot fulfill your monthly payments. Are you having a hard time paying your bills every month? You might be able to pay but can only carry out the minimum amount of payment or nothing at all.
You are borrowing money to pay your bills. Due to your inability to keep up with your credit card bills, you might have opted to apply for a loan to pay them.
You are frequently missing your monthly payments. You can no longer make even the smallest amount of payments and your interest rates are increasing.
If your financial problems have already affected your daily living, you can start easing the stress by making small changes in your financial outlook. For instance, you can start by making a budget plan. Compare your monthly expenses to your income. If there are huge imbalances, decrease your spending. Calculate everything and put the important details on a list of templates. Calculators for budgeting and worksheets are available online for free.
You can also call your creditors and negotiate a payment settlement for a lower rate. This may not always work but giving it a try will not hurt. Your chances of getting a successful negotiation with your lenders increase when your finances are still manageable. It is also good to work on a strategy to settle your debt on your own, however, this can take a lot of time and is very risky. You might end up with the wrong decision that would worsen your financial issues. In this case, you should acquire the assistance of a Licensed Insolvency Trustee.
Where to Get Help
Solving your debt problem is a complex process that needs the assistance of a credit counsellor or Licensed Insolvency Trustee especially when you have to choose between different debt management programs and debt settlement options. There are profit and non-profit financial agencies that can lend you a hand. However, you need to make sure that you will not fall under those who only promise solutions that are too good to be true but are unable to deliver results. The plan or strategy should be transparent, time-bound, and realistic. Besides, it should also be appropriate for your financial situation. Be wary and think several times before signing up for anything.
Credit Counselling Agency. Various organizations offer credit counselling services. Do thorough research about the counselling company to ensure that they are reliable, efficient, and trustworthy. Check the services they offer. If you think something is fishy and they are misrepresenting their advertisements, do not approach them. You can check out the Canadian Association of Credit Counselling Services and the Better Business Bureau for the list and existing complaints of these agencies.
Licensed Insolvency Trustee. These are professionals regulated by the federal government to administer bankruptcies and consumer proposals. Their responsibilities include giving advice as well as services to those individuals who have debt issues. They are your best option when you need help in negotiating with your creditors if you are unable to pay your debts. You do not have to worry about paying for unnecessary fees during the process because the fees for their services are also regulated by the government. Their licenses are granted by the Office of the Superintendent of Bankruptcy (OSB).
Before you talk to a financial advisor, credit counsellor, or insolvency trustee, make a list of the important points that you need to know.
Are you qualified for debt forgiveness or a debt management program?
If so, is it possible to be forgiven for the full amount of your debt? If not, how much of the portion will be settled?
What are the different types of debt that can be resolved under this program?
How much and how long will you be paying?
What happens if your financial status changes during the process and you cannot make the required payments?
Can your lenders stop contacting you? Can they change their mind after the negotiation has been set?
How will it affect your credit report and assets?
Debt Forgiveness and Solutions
Consumer Proposals
A consumer proposal is a debt forgiveness option that is legally and formally recognized by the government. Upon choosing this debt relief alternative, you will work with your Licensed Insolvency Trustee to create a “proposal” which will be presented to your lenders. The proposal includes all the necessary details to negotiate a settlement that is agreeable to you and your creditors. This includes the portion of the owed money that you need to pay and the period of repayment. Discounts may reach up to 80% depending on your income, assets, and overall financial status. A consumer proposal can be the best option to eliminate your financial problems.
Declaring Bankruptcy
Just like consumer proposals, filing bankruptcies is regulated by the federal government and is administered by a Licensed Insolvency Trustee. This is a process in which you let go of some of your assets to pay the money you owe. Bankruptcy is an option for people who can no longer make repayments.
Debt Management Plan
Unlike bankruptcy and a consumer proposal, a debt management plan is more of a debt repayment plan rather than a debt forgiveness program. The advantage of this is that you do not have to pay for the high interest rates but you are required to pay your debt in full. Problems with bank loans, bill payments, and credit cards are suited for this management plan.
What should you do now?
Do not ignore your financial troubles. Richard Killen and Associates, a Licensed Insolvency Trustee, has worked with people like you who are struggling financially. Contact a Licensed Insolvency Trustee today to discover how debt forgiveness in Ontario works, attain freedom from debt, and work for a successful creditor negotiation in Toronto.
