If you do not qualify for a debt consolidation loan and you cannot afford to repay your debts in full but still want to consolidate your debts into one monthly payment, an Ontario bankruptcy trustee can offer you two additional alternatives.
When you file a consumer proposal in Ontario your trustee negotiates an agreement with all of your unsecured creditors to accept a single monthly payment amount for a period of time in exchange for the forgiveness of your debts.
You have seen all the ads – been told how a debt consolidation loan will get you out of financial trouble and reduce your monthly payments.And yet, at the back of your mind you have some nagging doubts. Depending on your situation – that ‘not adding up’ can mean thousands of wasted dollars and years of heavy unnecessary debt load.A debt consolidation loan is where you borrow new money and use those funds to repay higher interest debts such as credit card debt.Your new loan should have a lower interest rate which will allow you to either lower your monthly payment or, keep the same payment and pay off your debts faster.If this is your first bankruptcy and your income is below the surplus income threshold you may only be required to make these payments for nine months.
Our best advice is to book an appointment with an Ontario bankruptcy trustee today to discuss your debt consolidation options.A debt consolidation loan is a good option if you still have reasonably good credit and have some source of stable income to be able to afford the monthly payments.If you have poor credit, you may be asked to use your home equity, car or other assets you own as security for the loan.All of our trustees offer a confidential, no-charge initial consultation.Book an appointment today and consolidate your debts.If you have ,000 owing on six credit cards and you get a ,000 debt consolidation loan, you still owe ,000.