If repaying your debts is becoming a burden, it is important to seek help as soon as possible before matters get out of hand and you lose your assets or valuables at the fall of the hammer. If you are in such a situation, the best option is to seek advice and assistance from profession debt management experts who will provide you with effective debt solutions in Edmonton, Alberta.
Once you contact Edmonton debt management service to help you out, they will first go through your financial statements to determine how much debt you owe and how it became unmanageable. They will then have a discussion with you and propose several measures and solutions that will help you get out of your current debt crisis.
Even though most people will feel the need to file for bankruptcy, this is not advisable as it will greatly affect your credit standing and make you ineligible for future loans from some major financial institutions. Some of the effective debt solutions that your Edmonton debt expert will propose include:
Debt Consolidation Loans
If you have debts from several creditors, the Edmonton firm helping to manage your debt situation may propose you take a consolidation loan. By consolidation your loans, you will have psychological relief and peace of mind as you will not have to deal with many creditors. With debt consolidation, you will also get lower interest rates which mean you will have money at your disposal that you will redirect for good use.
Coming To an Agreement with Your Creditors
Your debt management firm will arrange a meeting with your creditors so as to come up with a compromise arrangement on how you will be able to repay your debts. Because creditors want their debts repaid, they will be willing to agree to a good compromise deal. Examples of agreements that can be reached include loan restructuring and providing you with an extend grace period to reorganize your finance.
If you are in a bad debt situation but do not want to file for bankruptcy, the best alternative is to let your debt management firm file a consumer proposal on your behalf. A consumer proposal is a legally binding agreement in which your debt management firm will negotiate with your creditors to come up with solutions to your financial problems. With a consumer proposal, creditors will either forgive part of your loan, give you more time to reorganize your finances and even waive interest rates.
Filing for Bankruptcy
In the event there is no effective debt solutions in Edmonton, Alberta that will help you manage your debt crisis, the last resort will be to file for bankruptcy. Once you file for bankruptcy, you will have legal protection from your creditors. Because filing for bankruptcy is a complex process, your debt management firm will help you through the entire process of declaring and filing for bankruptcy.
Debt Counselling Services
To ensure you do not return back to unmanageable debts, your Edmonton debt management company will arrange debt counselling sessions for you where you will learn how to effectively manage your income and debts.