Debt Solutions in Toronto, Ontario
Did you know that household debt in Canada is at record levels? And did you know that Toronto debt is actually slightly higher than the national average? Both of those statements are true.
The debt Toronto residents and Canadians hold is very high. On average, Canadian families now owe nearly $1.65 for every dollar of after-tax income they earn. The Bank of Canada has noted that credit is currently growing at a faster pace than disposal income. This can lead to a number of issues.
High rates of debt can make it difficult for an individual or a family to properly deal with rising prices, job losses, interest rate increases, housing value decreases and other economic difficulties.
The high rate of household debt Toronto residents and Canadians currently hold can also mean that many people struggle to pay down their debts. Having a large amount of debt can become very stressful. People with a large amount of debt may worry about what would happen if a situation came up that left them unable to pay back their debt.
There are a number of ways to manage debt. If you are starting to feel as though you may have a debt problem, there are several steps you can take on your own. One of the first steps is to fully examine your household budget and determine if there is any way for you to cut down on expenses. Cutting back on spending in some areas may give enough extra money to put towards debt management.
However, we understand that this option will not work for everyone. In some cases, people may be unable to find places to cut or they may not be able to cut enough to make a dent in their debt. In these cases, you will have to look at other options.
Some financial institutions may offer debt-consolidation loans. These loans leave you with only one debt to pay down each month, which often makes the debt repayment process easier. However, it is important to note that not everyone will qualify for such a loan and that, in some cases, interest rates are quite high on debt-consolidation loans.
Another debt repayment option involves speaking with each creditor individually and attempting to negotiate a different repayment schedule that you can handle. Some creditors will be more flexible on payment terms, timeframes and interest rates if they know that you will not be able to pay back your debt without adjusting the terms. However, this process can be time-consuming and stressful and some creditors may not agree to terms that work for you.
If you are unable to manage your debt through these options, Toronto credit counseling may be your next option.
Credit counselling is a process that educates and trains people how to avoid incurring debts. It also works towards establishing a debt management plan that will help you repay your debt. Debt counselling often involves working with creditors to eliminate late fees as well as negotiating to reduce the amount of interest owed or lower the balance owing.
In all of the above options, if your wages have been garnisheed or legal action has been taken against you, these actions will continue as these creditors are not obliged to drop them.
From the above you can see that there are many things to understand and consider before deciding on how to proceed.For more information on how to handle your debt, you can contact a professional such as a Trustee in Bankruptcy or Proposal Administrator for assistance. He or she can provide you with important information and discuss the options available to you.