Don’t just consolidate your debt, reduce it.

Are you in trouble with debt or do you have a manageable amount? Most people have some debt, usually in the form of a mortgage or a car loan or a line of credit. But how do you know when it’s too much?
There is no easy answer that works for everyone. However, here are a few ways to tell if you have too much debt.

• You are unable to pay your monthly expenses without using a credit card or line of credit
• You’re only making the minimum payments on your debt
• You’re receiving calls from creditors
• You’ve missed payments
• You’re not sure how much debt you have
• You regularly use overdraft protection on your bank account
• You’re feeling stressed or worried about your debt
• You hide your debt or your spending from friends and family

These are just some of the signs. Each person is different, and every situation is unique. However, if you are struggling with debt, you can book a free consultation with one of our team members to learn more about your options.

If you have a lot of debt, you’ll quickly find that repaying it is difficult. This is often because many debts have very high interest rates. Even if you make your payments each month, it will take a very long time to reduce your debt and it will cost you quite a lot to do so. Interest charges can make each of your monthly payments higher, which can make it more difficult to repay your debt.

If this is the situation that you are in, you may wish to consider debt consolidation services. Traditional debt consolidation services provide loans that you can use to repay your existing debts. If you have many different high interest debts and you take out a new loan with a lower interest rate than the debts you have, you’ll save money on interest charges. This will mean lower monthly payments and you’ll be able to repay your debt more quickly.

If this sounds like a situation that could benefit you, you’ll want to find the best debt consolidation loan available. Speaking with a debt consolidation service like a traditional bank may help you understand what you may need.

Overall, remember that there are many different options available and that the best debt consolidation option is the one that works for you and your financial situation.

If you are currently having difficulty paying your bills, are behind on your payments, or are paying just the minimums on your credit cards leaving you with bad credit, a Consumer Proposal may be a better solution than a debt consolidation loan.

To qualify, you must be a Canadian resident with unsecured debt (like credit cards, payday loans, and student loans) between $6,000 and $250,000. You also need to be able to repay a portion of the debt you owe. This is done on a monthly basis, with 0% interest and is based on what you can actually afford to pay.

Yes, Consumer Proposals do have a negative effect on your credit rating, but the effects aren’t permanent. If you are already in the position where filing a Consumer Proposal makes the most sense for your situation then you likely already have a poor credit rating and a lower than average credit score.

At Farber, we’ll help you rebuild your credit rating for the long term and without debt weighing you down, you’re able to finally start saving for your future!