Do you have a debt problem? This is a sad reality for thousands of people like you in and elsewhere in the province. Fortunately, there are some great ways to get your finances back on track.
Do not believe that you are an isolated case and that your money problems have no outcome, far from it! The news is full of stories reporting the financial troubles of ordinary and the over-indebtedness that affects families in large numbers.
Fortunately for you, many financial advisors or mortgage brokers in are ready to explain the various options available to you, such as:
- Debt Consolidation
- Mortgage Refinancing
- Personal bankruptcy
- Consumer proposal, etc.
But how do you know which of these mysterious avenues is right for you? How to identify your needs according to your specific financial situation? Well, keep reading and we’ll try to find the right remedy for your money worries to become a thing of the past?
Why is debt consolidation the most common option?
Simply because it is the most advantageous solution in the majority of situations. Imagine this scenario: your debts start to accumulate, the interest rates on your credit cards make impossible the complete payment of each monthly invoice and the unhappy creditors start calling you in a tone more and more insistent . The feeling of anxiety starts to rise and you are desperately looking for a solution to all your ills.
What is your surprise when approaching a bank in desperation, it offers you to pay all of your debts so that you have only the bank to repay as a single creditor, and this , at a lower interest rate than your debts!
This is what summarizes the principle of debt consolidation and it is also its “too good to be true” that makes it an option of the most popular with people in debt distress!
However, the reality is not completely rosy. You need to have a record and a decent credit history for the bank to agree to grant you a debt consolidation loan. As the financial institution agrees to take a risk by paying your debts for you, it is justified that they insure their own interests by not lending to anyone.
In addition, it is not excluded that an endorser must add his name to the agreement to guarantee your payment, otherwise the bank will reject your request. Bonding is a legal process that is highly consequential for the endorser if you do not make the payments because he is the one who will end up with the burden of your debt. So, avoid using an endorser at all costs!
One of the reasons why debt consolidation is so common is that the interest rate is trading. In this regard, it is crucial to make sure that the interest rate attached to the consolidation loan is in deca of the total rate of your debts, otherwise you will lose any advantage that the consolidation of debts brought.
What factors influence the acceptance of a consumer proposal?
The consumer proposal is a very tempting option when the bankruptcy start to look you too closely! It consists in offering to your creditors to repay only part of your debts and to give up the excluded part of the offer, otherwise you risk becoming insolvent, declaring bankruptcy and thus falling under the protection of the Act. bankruptcy and insolvency .
This law prevents your creditors from claiming your dues directly from you and from taking any action against you in this regard, because the actions taken against you are suspended under the law. It is with the authorized trustee in insolvency that your lenders will settle their accounts, which complicates their life, be assured!
But where is the catch in all that you wonder? It is at the level of acceptance of the consumer proposal, of course! The law allows you to offer very low reimbursement percentages to your creditors and it is up to them to accept or reject it through a vote.
However, not all proposals will be accepted, especially if they offer a ridiculous percentage. That’s why you need to consider the following few factors to maximize your chances that the offer will be accepted:
-The proposal must be reasonable: Just because the law allows you to submit ridiculous offers does not mean that your creditors will agree to lower themselves to that level. If your proposal is significantly out of the total amount of debt, it is because your situation is extremely precarious, so be consistent with the reality of your situation!
-The proposal must be made in proportion to your means: You out of debt to return the next year would be counterproductive, it is the least we can say! You should consult a trustee in bankruptcy or a financial advisor who will ensure that you find ways to pay your bills once the proposal is accepted!
-The proposal must be justifiable to creditors: As mentioned above, the amount of the proposal must be consistent with the precariousness of your situation. Since creditors are entitled to hold a meeting as part of a consumer proposal, they may require an explanation or justification for the percentage offered. That is why it is important not to draw a random percentage of your hat, as this may be badly received by your creditors!
In any case, you see that a consumer proposal has its share of financial and legal subtleties. Better to entrust your execution to qualified professionals who will put all the chances on your side and which will maximize your chances that your proposal is accepted!
Is it advantageous to refinance your mortgage?
Mortgage refinancing is not a decision that must be taken lightly. Indeed, although it can bring you many benefits, it can also be very expensive. This procedure often includes fees such as:
– Notary fees: As a modification of your mortgage takes place, the intervention of a notary is necessary during the process to ensure the proper execution of legal aspects.
-Valuation : As your mortgage is attached to your house, it will have to be reassessed by a professional accepted by the bank. There is no point in explaining that this expertise can be expensive.
Now that we’ve talked about the downsides, we should not forget the reasons that might convince you to opt for mortgage refinancing. Some of the benefits of mortgage refinancing include access to:
– More liquidity: The refinancing is generally done on the net value of your property, which gives you access to funds in proportion to the value of the latter.
-Access to a line of credit and a mortgage loan for better interest rates: It is not uncommon for institutions, in a case of mortgage refinancing, to combine these two options in order to make you benefit from interest rates. preferential interests.
-The renegotiation of a better interest rate: If your mortgage is coming to an end or the time is right for you, it is possible to renegotiate the interest on your mortgage!
-The realization of several projects, such as the renovation of your home! : The project can be as much about debt settlement as it is about improving an existing home, as long as these expenses do not embarrass you again!
It goes without saying that the best time to refinance your mortgage is when the value of your property rises and interest rates go down. This is where the benefits of your renegotiation will pay off. However, it is wise and even recommended to consult an expert in the field to avoid being seduced by false promises!
Bye Bye the Debts takes care of the people of !
Over-indebtedness is a burden you do not need! There are too many profitable solutions in this world for you to pity yourself on doing nothing! Hundreds of financial advisors and bankruptcy trustees in the area are just waiting for your call to begin the reinstatement process.
We the referencing platform is a master at finding qualified professionals who know finance at their fingertips and who will know which solution is right for you among the choices we have just made. For example, the use of debt consolidation is very common and could very well help you!