C.E. Craig & Associates | Debt Consolidation

C.E. Craig & Associates Inc.

Debt Consolidation Help

Are you in Need of “DEBT HELP” On Vancouver Island?

Do you feel that you struggle each month trying to balance your family budget, but the credit card balance never gets paid off or, worse yet, is constantly increasing? Are you feeling stressed about not being able to pay all your bills on time and in full? Have you been considering ways to consolidate your debt in hopes of lowering your monthly repayment obligation? Do you need some debt help to come up with a debt consolidation plan?

When it comes to Debt Consolidation, there are many different options in Canada. If you are trying to reduce your debt burden or trying to eliminate your debt all together, the best thing to do is to understand your options before you pick which one will work best for you.

Debt Consolidation Loan

A consolidation loan consists of getting one large loan from an institution, such as a bank or credit union, to pay off all of your smaller debts such credit cards, loans, lines of credit etc. The hope is that once you only have one payment to make each month, the hassle of paying all the individual payments goes away and you can be more consistent with your payments.

Debt Consolidation Loans in Canada can include:

1) Line of credit which may/may not be secured against your assets such as a house
2) A conventional second mortgage on your house or other real estate holdings,
3) Personal loan co-signed/guaranteed by family members or friends.

Advantages of debt consolidation

Some advantages of debt consolidation include:

Debt consolidation loans, hopefully, have a lower interest rate than what you would be carrying on other sources of credit such as department store cards or credit cards.
Only having to worry about one payment per month instead of multiple payments
Greater ability to accelerate payments without penalty if desired.

However, some of the risks or complications associated with a Debt Consolidation Loans include:

1) Difficulties in qualifying for additional debt when you are already overwhelmed by debt
2) General requirement of a cosigner which may mean that you are exposing friends or family to additional or increased financial risk,
3) Ongoing/continuing interest charges and fees
4) Requirement to pledge previously unsecured assets to secure additional sources of debt. This may mean that assets that were once exempt from seizure from your creditors are now subject to seizure if you are unable to pay your new debt in full.

Reach out to a debt solutions manager today:

CALL TODAY

FREE CONSULTATION

Debt Management Plans – Not Necessarily Debt Consolidation Loan

Debt consolidation plan or debt management plan can come in many forms but some of the most reliable are those that are offered through local not-for-profit societies, such as the Credit Counselling Society of BC. They can negotiate on your behalf to reduce the interest on most types of consumer debt. These debt management plans are:

Dependent on the cooperation and agreement of your creditors,
Work well for smaller amounts of consumer debt (generally less than $10,000)
Your income must allow you to pay 100% of the principle and interest off, generally, in less than 5 years,
Cannot include CRA tax debt or student loan debt.

The main downside with these types of Debt Management settlement arrangements is that if not all creditors agree, you once again can be left with multiple levels of interest and multiple payment requirements. These types of arrangements also call for you to pay your debts in full as the face value of the debt is not generally reduced or compromised.

Debt consolidation versus debt settlement? Where is the difference?

There are multiple debt consolidation plan companies in Canada someone very reputable, and some, well, not so much. Some firms represent themselves as debt consolidation companies or offer “debt advice”, but what they’re doing is offering debt settlement services for a fee. They present themselves as reputable and some are even members of the Better Business Bureau. But what they’re doing is combining your debt into one payment with their agency. Others, for a fee, will simply refer you to a Licensed Insolvency Trustee. They often charge very large upfront fees, somewhere between $1500 and $3000, and are completely unregulated. They have no professional guidelines or governing bodies covering their services. Always be careful when dealing with debt settlement companies or debt consulting agents who are unlicensed and unaccredited.

A consumer proposal will:

Immediately stops the interest
Binding on all creditors when approved even if some vote against it,
Creates one affordable monthly payment based on what you can afford
Reduces or compromises the face amount (principle) of the debt

If going further into debt by getting a consolidation loan would mean more debt that you can’t afford, talk to us today about a Consumer Proposal as this may be the right option for you.

Reach out to a debt solutions manager today:

CALL TODAY

FREE CONSULTATION

OUR TEAM

COLLEEN CRAIG

Colleen founded C.E. Craig & Associates Inc. in 2003 after 10 years in the insolvency industry. As a federally licensed Trustee in Bankruptcy she deals with the day-to-day issues that creditors and debtors encounter when they are faced with Insolvency situations. As a Chartered Accountant, Colleen brings a pragmatic approach to dealing with the complex matters and finding the right solution for all parties.

JANET WHITE

Janet has been with C.E. Craig & Associates Inc. since 2003, when the company opened. She helped build the practice from the ground up, giving her a thorough understanding of the ins and outs of insolvency legislation and procedures.

LESLEY BENTLEY

We were pleased to welcome Lesley Bentley into our firm in 2013. She has been an Estate Administrator for over 30 years offering advice to individuals struggling with personal financial issues.

BADGER

No formal insolvency training, but also non judgmental, loyal, and cute.

Reach out to a debt solutions manager today:

CALL TODAY

FREE CONSULTATION

CHECK OUT OUR BLOG

RSS image

December 12.2020

Your Big Blog Post Title Will Be Here

An excerpt of your post content will show up in this section so blog visitors can have an idea on what this post is about before they click it to see the post content. You can create your posts from your blog funnel dashboard.

0 Views

Write a Comment

RSS image

December 12.2020

Your Big Blog Post Title Will Be Here

An excerpt of your post content will show up in this section so blog visitors can have an idea on what this post is about before they click it to see the post content. You can create your posts from your blog funnel dashboard.

0 Views

Write a Comment

RSS image

December 12.2020

Your Big Blog Post Title Will Be Here

An excerpt of your post content will show up in this section so blog visitors can have an idea on what this post is about before they click it to see the post content. You can create your posts from your blog funnel dashboard.

0 Views

Write a Comment

RSS image

December 12.2020

Your Big Blog Post Title Will Be Here

An excerpt of your post content will show up in this section so blog visitors can have an idea on what this post is about before they click it to see the post content. You can create your posts from your blog funnel dashboard.

0 Views

Write a Comment