Ontario Debt Management options

Are you overwhelmed by debt? If so, relax there is hope and you do have options! Identifying that you have a financial problem is a big first step. Now, let us educate you about all of the different debt management options, which are currently available in Ontario.

What exactly are my debt management options?

At Hoyes Michalos & Associates we understand the stress and negativity that overwhelming debts can cause. We also realize that everyone's situation is unique, and as such, no one plan is right for everyone. Thankfully in Ontario, there are number of different debt management options. We are happy to offer everyone a FREE, no obligation, professional consultation, in order to review these options with you and help you to decide which is the correct choice for you.

Overview of different Ontario debt management options:

Personal budgeting: Many people are happy to learn that a simple personal budget can help you to get your finances back on track. Budgeting is actually quite easy and it will allow you to become aware of your spending, versus your earnings, so you can identify ways to reduce your expenses or increase your monthly income.
Debt Consolidation Loan: A debt consolidation loan is, one loan issued to pay off multiple small loans. It allows you to reduce multiple payments into one smaller monthly payment, generally at a lower interest rate and spread over a longer period of time. However, since it is a loan, you will still need to apply and qualify in order take advantage of this option.
Credit Counselling: Credit counselling is when a non-profit credit counsellor summarizes your debts and prepares a multi-year repayment plan for you. The repayment plan will generally have one single monthly payment and be spread over a period of three to five years. This summary is referred to as a "Debt Management Plan" and the counselor will present it to your creditors, on your behalf.
Debt Settlement: A debt settlement is an arrangement negotiated with a creditor where you pay a portion of the amount owing. If you owe $10,000, you could offer to pay $4,000 as a lump sum to settle the debt, or you could offer to make payments over time. If the debt is old, and if you have a lump sum of money, this may be a viable solution. However, if you have many debts, you must reach an agreement with each creditor, which may not be possible.
Consumer Proposal: A consumer proposal is a legally binding settlement between a debtor and a creditor. It typical involves the debtor making one monthly payment, on an agreed upon settlement amount, over a period of no more then 5 years. At the end of the proposal period the debtor is then released of any remaining balances, which may be left from their original amount of debt.
Bankruptcy: In an Ontario bankruptcy an individual surrenders certain assets to a trustee, in order to be absolved of their debts. They are then legally declared bankrupt and required to adhere to the duties of a bankrupt, in order to obtain an absolute discharge, at the end of their bankruptcy term.

As you have now learned, bankruptcy is just one of the multiple Ontario debt management options. It should be used as a last resort, and it will only be recommended by a trustee, if none of the other alternatives can work. We are confident that our friendly and understanding professionals can help you choose the correct debt management option, for your individual situation. Contact us today and get a FREE, no obligation consultation. We can help to start you on the road to a more secure financial future.

Ontario Debt Management Options

What exactly are my debt management options?

Overview of different Ontario debt management options: