The Best Debt Management Program and Debt Restructuring

People are continuously looking for effective debt restructuring methods to get out of debt along with reputable debt management programs in Canada. It can be very difficult to make a decision when going over the different options especially when every step you make will determine the outcome. Other people choose to settle their financial problems on their own not knowing that this is a risky thing to do especially when they do not understand the process fully. It is important to have at least the basic knowledge when going through the journey of getting discharged from your debt. 

Before making a decision, you should take time to think things over and do a comprehensive review of your financial situation. 

What are the things to consider when you decide to manage your debt?

Determine your debts. The first thing to do is to put your financial issues into perspective. Where are you having problems money-wise? In addition, it always helps to make a list of all of your debts after you identify them. For instance, you can list all of your existing debts such as unpaid bills, various loans, credit card balances, taxes, and even child or spousal support. Your list should also include the total amount of owed money from each debt, the interest rates that you are paying, and the value of payments every month. You can also take a look at your budget plan. If you have not created one yet, you can start with a simplified budgeting plan. This usually involves determining the total amount of money you earn against the amount you spend and save. Simply put, a budget plan will enable you to balance your income and expenses. Establishing a thorough evaluation of your financial problems will also aid you in reaching your financial goals. 

Formulate a strategy.  The details you listed in your plan will influence the strategy that is appropriate to resolve your problem. This should include the length of time in which you should be discharged from your debt. Can you afford to settle the payments within three to five years? The timeframe should be realistic and reasonable. There is also the matter of the interest rates as these are always fluctuating and may increase from time to time which can affect the value of monthly payments that you need to fulfill. It is a good idea to settle loans with high-interest rates first. Learn how to prioritize which of your debts you should clear right away. After, you can reflect on which of the various debt management programs are effective for your situation. 

Change your attitude about your finances. Are you the type of person who is a compulsive buyer? Are you inclined to spend more than your monthly income? If so, you may find it more challenging to achieve your financial goals. Before applying for a loan, you should always consider your budget, existing debt, and your ability to pay. It is tough to change a bad spending habit right away but making daily adjustments can go a long way. Try to save money by making your lunch, minimizing the urge to eat out, and taking public transport from time to time. Be careful when shopping, always spend within your budget, and avoid buy now pay later deals. Looking for ways to increase your monthly income is also a big advantage. Make use of expense calculators, which are always available online. 

Seek help from Insolvency Trustees. Learning about how to manage your debt on your own may not be enough especially if you have a major financial problem. Acquiring the help of a person who is an expert in debt management and financial issues can save you money, time, and effort. You will have a deeper understanding of the different types of debt management programs by talking to Licensed Insolvency Trustees. They can advise you on how to make an educated decision to choose the best debt management plan and offer you credit debt counseling services. 

Debt Management Plan 

A Debt Management Plan involves combining multiple unsecured debts into one repayment program. A debtor can benefit from this by having reduced interest rates. Yet, you still have to pay the full value of the money you owe. This can take up to five years. The single monthly payment will be done through a credit counsellor. 

How does it work?

The first thing to do is to schedule a consultation with the trustee or credit counsellor, who can review your financial situation. You need to give all of your financial details, including all of your debts, income, status, and assets. This way, your trustee or debt counsellor can assess whether you qualify for a debt management plan or not. They can also advise you on what to negotiate to increase the chances of acceptance from creditors. Upon formulating the payment settlement plan which should be beneficial for both the debtor and creditors, your trustee will contact your creditors and negotiate on your behalf. 

What are the benefits of debt management plans?

Track your payments easily. Your debts will be consolidated into a single monthly payment. Thus, it can be easier to keep track of your bills and avoid missing payments. All you need to do is to remember the due date. 

Lower interest rates. One of the goals of the management plan is to decrease the percentage of interest rates that you have to pay for your debt. This way, repayments are made affordable and stress-free. 

Support from your trustee. Your credit counsellor, besides providing you with credit counselling, will continue to be your advocate in becoming debt-free throughout the program and will administer all the necessary procedures needed for you to be discharged from your debt. 

An effective debt management plan is important if you want to be free from your unsecured debts and have a fresh start financially. Different solutions are always available for you, including consumer proposals, bankruptcy, and debt consolidation. The best programs of which, are provided when you visit a Licensed Insolvency Trustee to help you achieve your financial goals. 

Richard Killen and Associates, a Licensed Insolvency Trustee, offers a free consultation to assist you in determining the best debt restructuring strategies for your financial problems and the best debt management program in Ontario. 

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    About Richard Killen & Associates

    Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.

    Serving the GTA for 25 years