Debt Relief Options for Financial Distress
Debt relief could involve wiping the debt out altogether in bankruptcy; getting changes in your interest rate or payment schedule to lower your payments.
There’s nothing worse than the anxiety and stress that comes from financial insecurity. Many people feel that they are in a no win situation with no solutions in sight. While bankruptcy offers a certain amount of relief, many people are rightly concerned about the long-term impact it will have on their financial well being. The good news is, there are other options available to people in financial distress.
For many people, a review of finances and some helpful guidance towards a healthier financial outlook is all it takes to make some major improvements. Establishing a reasonable budget, making use of good interest rates and getting on top of outstanding debt are all ways to get back on track. Our helpful team of experienced advisors can help you get yourself on the road to financial stability. At D. Thode & Associates, our Licensed Insolvency Trustees conduct an “assessment”. This is the first stage of the insolvency process, which provides for a financial appraisal interview, a description of statutory and non-statutory options that are available to an individual debtor, and a discussion on the merits and consequences of those options.
Sometimes the best way to improve your financial situation is to amalgamate a number of high interest debts into one single payment. A consolidation loan is offered by your bank or other financial institution. Payment plans can often be negotiated that would include lower overall payments at a more appealing interest rate.
This allows the consumer to service their debt while still managing their finances within their budget. Know exactly what you are agreeing to and ensure that the interest rate on the loan is lower than the interest rate that you were paying on the debts you are consolidating. We’ve seen lenders charging 33% or higher on a consolidation loan. If you cannot qualify through a bank or a credit union, the rule of thumb is you should be looking at other alternatives to borrowing more money and going further into debt.
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We want to help you to get out of debt. Don’t hesitate to contact us if you would like to learn more about bankruptcy alternatives and debt consolidation in Vancouver, We have multiple offices in the Lower Mainland and Interior B.C. Contact us today for more information.