Debt Consolidation: The Basics
Debt consolidation is one of the first solutions we look at to help our clients with mounting debt. It is one way of paying off your outstanding debt over time. The concept is quite simple. After assessing your financial picture, including your monthly expenses and debt load, we create a simplified payment plan for you. We combine your total unsecured debts and negotiate repayment terms with each creditor. Through us, you pay off these debts with one single payment.
Unsecured debts are those that do not require collateral, such as your home or car. Generally, the most common unsecured debts include credit cards and lines of credit.
When To Seek Help
Sometimes, debt spirals out of control. It gets so large that you cannot handle it on your own. No amount of budgeting or expense reduction helps. This is when you need help from our one of our qualified credit counsellors.
Your credit counsellor will help you set a budget and advise you on your financial problems. After completing a credit counselling assessment we will have a much better idea about which debt management solution best suits your circumstances.
Collection Agency Calls
While the rules differ in each Canadian Province, creditors and collection agencies cannot call you at inopportune times and at a frequency that amounts to harassment. If this is happening to you, contact us as soon as possible. Such bullying and aggression is against the law. And there is no reason to put up with the stress, humiliation and suffering that ensues.
The initial consultation is completely free and our experienced credit counsellors help mediate on your behalf. Notifying your creditors that you are enrolled in a debt repayment program should bring peace of mind. Collection agency and creditor calls will stop and become a thing of the past because we take over all further contacts with them.
Candidates for Debt Consolidation
Our debt consolidation plans are best suited for individuals who are unable to secure debt consolidation loans because of a poor credit rating. It is also the perfect repayment vehicle for those who can actually afford to pay the entire loan, but require more time to do so without accumulating more interest.
If you are a candidate for debt consolidation, then we create a debt consolidation and repayment plan best suited for you. Our aim is to make your payments as manageable as possible. We design most plans for repayment within 3 – 5 years. We will discuss it with you prior to initiating the negotiations with your creditors.
Debt Consolidation: The Negotiations
Our agency works with all major banks, credit card companies and most creditors, large and small. We have done so for over 40 years. As a client, you receive the benefit of our reputation and the solid relationships we have built with them.
Your credit counsellor personally manages the negotiations with all your unsecured creditors. These negotiations are the most important part of the debt consolidation process. We work out a debt repayment plan with them all. The strength of the negotiations depends entirely on your unique circumstances. And nobody understands your situation better than your counsellor does.
Why Work With Us
This is where our services differ from many other agencies. We do not pass your file onto another department to process with the creditors. Instead, your counsellor – and nobody else – manages the negotiations from beginning to end. It is what we do best. Our counsellors have the knowledge, experience and ability to strategically present your unique circumstances and properly advocate for you to secure the best possible deal.
Debt Management Plan
We begin to secure these agreements from your creditors as soon as you enroll in our proprietary Debt Management Plan (DMP). While we cannot guarantee the outcome, we do our best for you and attempt to wrap up the negotiations within 30 days. We understand how stressful debt problems are and we push hard to get you a good arrangement as quickly as we can.
We clearly outline the terms of your debt consolidation plan along with your payment obligations. It represents the best deal we have secured from your creditors. Your interest rate will be lower than before. Often we can get it reduced to zero. And your payments will be manageable and predictable.
From here on, you will no longer need to deal with any of your creditors. You will make one single monthly payment to us and we will pass it on to your creditors according to the agreements.
On-going Support
The DMP requires a lot of dedication and your commitment. Your counsellor will always be available to meet with you to discuss your progress and answer your questions. You will have full access to our professional advice and we ensure you stay on track with your goals. Sometimes this will be hard. And when it is, you can count on having your counsellor by your side as a strong sounding board.
All our clients receive tools to manage their budget and spending habits. Most importantly, should unforeseen circumstances occur like an unexpected job loss, your counsellor will be there to help adjust and manage your DMP as needed.
We’ve celebrated thousands of “final debt payments” and never tire of them. And we look forward to yours. Our goal is to set you up with healthy spending habits and the skills to remain debt free for life.