Financial vulnerability can affect anyone—regardless of income, background, or education. Credit cards, student loans and other types of debt can be a barrier to reaching your long-term financial goals. Paying off debt isn’t easy. But with the right tools and knowledge, it can be a whole lot easier.
There are so many debt relief solutions to choose from, it can be hard to know which one is right for you. We prefer to divide the most effective ones into two categories: managing debt on your own and formal debt programs.
When managing debt on your own you will need strong budgeting skills and discipline. You may also seek a debt consolidation loan within your financial institution. A debt consolidation loan is an unsecured personal loan that can be used to pay off existing debt. Unsecured means that you don’t need to put up any collateral to get the loan. You qualify for it based on your credit score. The idea behind a debt consolidation loan is that it can provide you with a much lower fixed interest rate and only one bill due date to remember. Unfortunately, this solution does not work for everyone. You generally need a good to excellent credit score to qualify for an interest rate that makes this solution beneficial.
Homeowners can also use the equity in their homes while dealing with debt. Remember, home is the most valuable asset, think twice before considering using it as a collateral. There are three most common solutions for homeowners: refinancing, home equity lines of credit, home equity loans. The advertisement usually says you will get access to more money, reduced rates, and lower payment amounts. Unfortunately, it’s not always the case. You will need a good to excellent credit score, study income and enough net equity in your home to qualify for a low interest rate.
There are many assisted formal debt repayment programs to choose from.
If you’re not sure what method would work best for you, or if dealing with your debt is just too overwhelming, you could always speak with Canadian Debt Advisors. We will find a Personalized Debt Solution that will fit your monthly budget and will not affect your lifetime goals!
We offer FREE, confidential, and no-obligation Consultation!
