How to Get Financial Help
If you’re struggling financially, it can be difficult to know what to do next. Finances can be very confusing, especially if you’re dealing with debt problems and have creditors or collection agencies calling. Many people feel lost and hopeless in these situations. This can mean they’ll stop looking at bills, stop answering their phone, and try to ignore their issues because they don’t know what to do. Unfortunately, this doesn’t help. Ignoring your financial problems can only make them worse. The good news is that there are many financial help options available.
So, where can you turn if you need financial help, advice, and assistance? If you feel hopeless or worried, know that there are many sources of financial help and guidance out there. Every financial situation is different, but here are some solutions that could be beneficial.
Debt Consolidation Loans
A debt consolidation loan is a loan that is taken out and used to repay your other loans. There are two main goals to a debt consolidation loan. One is to simplify the process of repaying debt. Many people who owe a lot of debt to many different creditors have trouble keeping up with when each payment is due and how much is owed. This can be a problem since missing a payment can lead to penalties and it also hurts your credit rating.
Another goal of a debt consolidation loan is to reduce the amount of interest you pay on your debt. If you get a new loan with a lower interest rate than the overall interest rate on your existing debts, you will save money on interest payments, which means repaying your debt will be easier.
However, while debt consolidation loans can save you money on interest, you’ll still be responsible for paying the full amount that you owe. In addition, it may be difficult to get a loan with a favourable interest rate, especially if you have a poor credit score.
Credit counselling agencies offer a range of services to those who are looking for financial help. These options include one-on-one and group financial counselling, seminars on budgeting and money management, debt management plans, and more.
A debt management plan is an informal proposal that is made by a credit counselling service to your creditors. In many cases, these plans consolidate your debt into a single payment. The goal of a debt management plan is to make it easier for you to repay your debt. In some cases, this is done by convincing your creditors to reduce or eliminate the interest that you pay, while in other cases, the credit counsellor will ask your creditors to extend the time you have to repay your debt. This will reduce the size of each monthly payment.
It’s important to note that credit counsellors can ask your creditors to work with them, but there is nothing that legally requires creditors to listen or to agree to an arrangement. Also, in most cases, you will still pay 100% of the debt you owe.
Licensed Insolvency Trustees
A Licensed Insolvency Trustee is a professional who has been licensed by the federal Office of the Superintendent of Bankruptcy to provide information to those who are looking for financial help and to administer insolvency proceedings.
If you are looking for financial help, having trouble paying your debts, or you’re not able to afford to pay your bills when they become due, speaking with a Licensed Insolvency Trustee can be a good idea. Most trustees will provide a free consultation where they will review your finances and provide you with information on the options that are available to you. Trustees are required to provide information on all available options, not just the options that they administer. Speaking with a trustee will give you an idea of what choices exist and help you determine what is best for your financial future.
Licensed Insolvency Trustees are the only people authorized to administer bankruptcy and consumer proposal procedures in Canada. If, after speaking with a trustee, you determine that either of these processes is the best option for you, the trustee will complete the required paperwork and start the process. With a bankruptcy, your debt will be eliminated, and you will be allowed to start your financial life fresh. With a consumer proposal, you will make an offer to your creditors to repay them a portion of what is owed, and the remaining outstanding debt will be eliminated.
Once you file for bankruptcy or consumer proposal, the trustee will be responsible for all communication with your creditors. In addition, since these are legal processes, they provide legal protection from creditors. This means they will not able to take any action against you to collect, including sending collection agencies after you. Any actions that are already in place (such as wage garnishments) must be stopped.