Get Help With Your Debts Without Judgment

Credit card debt has an insidious way of accumulating without attracting much attention. You may find it easy to ignore early warning signs like balances that rise despite your best efforts to pay them down and interest rates that slowly increase with each successive statement. Like the proverbial frog that fails to realize it’s being boiled alive, you may find yourself overwhelmed by debt all at once.

Recognizing that your debts have become a problem is a crucial first step in the process of regaining your fiscal footing. Before you give up and declare bankruptcy, do your best to solve your personal debt crisis on your own. You may save thousands of dollars in legal fees and prevent untold years of damage to your credit score.

First, determine exactly how much debt you’re carrying. If you’re like most consumers, you’re using a variety of credit cards to cover your everyday expenses. Check the most recent statement for each card and add your current balances together to find the total value of your credit card debt.

Next, figure out the total monthly interest charge on each card. This may require some arithmetic: You’ll have to multiply your current balance by your card’s annual interest rate and divide by 12. For instance, a $5,000 balance that accrues interest at 20 percent will grow by roughly $83 each month.

Once you’ve determined the extent of the problem, stop the bleeding by freezing your credit card spending right away. Keep just one card on hand for emergency expenses and hide the rest in an out-of-the-way location. Avoid canceling them: Simultaneously shutting down multiple credit facilities may further damage your credit score.

It’s unlikely that all of your credit cards accrue interest at the same rate. If you want to save as much money as possible, target your most expensive card first and devote the bulk of your disposable income to paying it down. To avoid accruing penalty interest due to an avoidable late payment, continue making the minimum payments on your other cards.

After zeroing out your most expensive card’s balance, take a moment to celebrate and then repeat the process with your less-expensive cards. Don’t assume that this will be easy: You’ll encounter unexpected temptations and expenses along the way.

Depending upon the size and cost of your outstanding balances, it may be possible to work your way out of debt within a few years using this method. Unfortunately, do-it-yourself debt management doesn’t work for everyone. If your credit is less than perfect, your interest rates may be too high for you to make much headway in the fight against your debts.

If so, don’t despair. You’re not out of options.

There are plenty of debt relief choices that don’t require the intervention of a lawyer or judge. While using any form of professional help to eliminate your debts may damage your credit score temporarily, the negative effects of most debt relief methods are transitory compared to the years-long ordeal that typically follows a bankruptcy filing.

Although every personal debt crisis is unique, debt settlement may be your best bet for avoiding bankruptcy. Unlike credit counseling or debt consolidation loans, which merely reduce your interest rates, debt settlement may lower your principal balances in dramatic fashion. As a result, you’ll save thousands of dollars and wind up the debt relief process in a relatively short period of time.

Talk to a debt settlement professional today to learn more about how it works. You can call toll-free during regular business hours or fill out the free online form at any time.


Compare debt relief options

Stack of bills with stamp Paid OffIf you’re heavily in debt, you know that it’s no fun. You may be receiving harassing phone calls from your creditors – especially your credit card providers – or even from debt collectors.

If you are being hassled by debt collectors, we don’t have to tell you how ugly this can be. They may be calling you all hours of the day and night, at home or even at work. One or more of them may even be threatening to contact your employer, calling you names or intimidating you in some other way.

Fortunately, there are debt relief options that can get you out of debt in 24 to 48 months or even less – depending on how seriously you are in debt. Here are the most popular options.

Credit counseling

There may be a consumer credit counseling agency in your town or city. If not, you can always find one online. In either event, you will be teamed up with a debt counselor who will review your finances and help you develop a payment plan. He or she will also contact your creditors to negotiate reductions in your interest rates and to have them approve your plan.

When all your creditors sign off on your payment plan, you’ll no longer have to pay them. Instead, you will send one payment a month to the credit counseling agency and it will pay your creditors. However, it’s important to understand two things. First, credit counseling services can only negotiate your unsecured debts. And second, if you are deeply in debt it will take you from 5 to 7 years to complete your plan.

A debt consolidation loan

A second option for dealing with your debt is to get a debt consolidation loan. If you owe less than $10,000 you should be able to get an unsecured or signature loan. However, if you owe more than $10,000, you will probably have to get a secured loan – or one where you have to pledge an asset as collateral. In most cases that asset will be your house. This means you would need to have sufficient equity in the house that you could borrow enough to pay off all your debts. In other words, if you owe $15,000, you would have to have at least $15,000 in equity. Your debt consolidation loan would probably take the form of a second mortgage or homeowner’s equity line of credit.

Regardless of which of these you choose you would be putting your house at risk. This is because if you were to ever default on that loan, your lender could repossess your home. Another disadvantage of a debt consolidation loan is that it would probably you 7 to 10 years to pay it off – during which time you would have to be very, very careful about running up any new debts.

Chapter 7 bankruptcy

The third debt relief option is to file for bankruptcy. However, before you file you will need to review your finances in great detail with a licensed trustee. This means you will have to provide him or her with your tax records, bank statements, and even sales receipts for durable goods so that your exact net worth can be determined.

Different provinces have different laws governing the bankruptcy process. However, no matter where you live you can expect that your creditors will take a substantial amount of your assets.

You will be allowed to retain certain exempt assets but others can be seized. If you live in Ontario, you will be allowed to keep your car if it’s worth less than $5,650 and up to $11,300 in work related tools. You will also be able to keep certain home furnishings and clothing items but most of your other possessions can be seized. About the same rules apply in Saskatchewan. However, there you can keep any car worth less than $10,000 and up to $7,500 in clothing items. Plus, filing for bankruptcy can ruin your financial reputation for anywhere from 6 to 14 years.

Debt settlement

The fourth, and we think best, option is to have us settle your debts. This is better than debt consolidation because we can actually get your balances and interest rates reduced. It is also better than filing for bankruptcy as it will not have as serious an affect on your credit.

Debt settlement can probably save you thousands of dollars. The way this works is that we evaluate your debt and create a customized debt program. You save funds for settlement. We then negotiate settlements with all your credit card providers and your debts will be resolved.


Canadian Debt Relief

Canadian lenders may have taken fewer risks than their American counterparts during the years leading up to the recent recession, but it wasn’t enough to insulate the country completely from the toxic effects of the global financial crisis. If you’re like most Canadians, you probably feel a great deal less secure in your finances than you did just a few years ago. You may even be worrying where your next paycheck is going to come from.

Worse, you may have accumulated unseemly amounts of debt in the easy-credit days preceding the recession. Until recently, banks were practically giving away credit cards, personal loans, business lines of credit and other unsecured credit products, seducing millions of Canadians with the promise of cheap cash and a leisurely repayment schedule.

If you fell for the hype, don’t be too hard on yourself. Instead, resolve to dig yourself out of your predicament with the help of a certified Canadian debt relief company.

There are almost as many ways to get out of debt as there are to become ensnared by it in the first place. You’ve no doubt seen slick TV spots or online banner ads hawking debt consolidation loans, and you probably understand the concept of personal bankruptcy as well. You may even have noticed billboards or bus-stop ads touting the advantages of not-for-profit credit counseling agencies that promise to reduce your debts for next to nothing.

Every debt problem is different, and there’s no one-size-fits-all approach to getting out of debt. Choosing the appropriate debt relief option can be a complicated process that turns on the value of your outstanding debts, your relationship with your creditors, the size of your savings cushion, your employment status, and countless other factors.

It’s a big choice, so don’t allow anyone to rush you into making a decision. Instead, take some time to consider your options and make a determination that you can live with.

With aggressive advertising support and easy-to-understand terms, debt consolidation loans may be the most popular Canadian debt relief option. From British Columbia to Nova Scotia, thousands of desperate Canadians enroll in these programs each year.

As their name implies, debt consolidation loans are credit products designed to reduce the aggregate interest rate on your outstanding unsecured debts. The idea is simple: Debt consolidation loans allow you to pay off all of your existing debts at once, effectively trading multiple monthly payments for a single obligation.

Even if your credit is less than perfect, you’ll probably be able to secure a debt consolidation loan large enough to cover your outstanding debts in one fell swoop. Since you’re trading one basket of debt for another, however, it’s important to shop around for the lowest possible interest rate before you pull the trigger on a debt consolidation loan.

As anyone who needs a debt consolidation loan is an inherent credit risk, you’re guaranteed to pay a premium for it. As such, you’ll need to calculate just how much your new debt consolidation loan will save you relative to your old collection of debts. For instance, taking out a $10,000 loan with a 15 percent interest rate to replace a credit card bill with an average interest rate of 20 percent will save you $500 per year.

Rates may be more favorable in certain parts of the country. If you live in oil-rich Alberta, where credit is still quite easy to come by, your lender may knock several percentage points off of your annual charge. On the other hand, you may pay a hefty premium over the national average in hard-luck Newfoundland.

No matter where you live, debt consolidation loans carry significant risks. Your lender will likely give you less rope than your former creditors, who were only too happy to let you run a balance on your credit card. Don’t be surprised if a single missed payment sends you into credit-destroying default on your loan.

Credit counseling is another apparently cheap option that carries some steep hidden costs. Using a credit counseling service to seek Canada debt relief will seriously affect your credit score, making you unattractive to lenders and employers alike. Worse, the credit counseling process can be interminable with complex cases taking up to six years. Indeed, the only real upside to these services is their ability to put an immediate end to phone harassment from your creditors.

Although it’s not perfect for every predicament, debt consolidation through settlement offers plenty of advantages over other debt relief options. Unlike debt consolidation loans or credit counseling services, debt settlement can meaningfully reduce the total amount that you owe your creditors. Depending on the number and size of your debts, the process typically takes between 12 and 48 months.

While every case is different, many creditors may be willing to settle for as little as 40 percent of what you owe. In other words, debt settlement can save you up to 60 percent on your outstanding unsecured debt load. Although your credit may suffer temporarily the negative effects of your decision to settle, your debts won’t last as long as the devastating consequences of bankruptcy.

Stop worrying about how you’ll make your next credit card payment and resolve to get yourself out of debt for good with a debt settlement program. Whether you live in Saskatchewan, Ontario or anywhere else in this great country, this uniquely Canadian debt relief solution will save you thousands in ruinous interest payments and probably hundreds more on treatments for stress-related white hairs.