Using Debt Settlement as a Debt Help option in Winnipeg in 2017
We have finished off the holiday season and are well into a new year. Many people have made New Year’s resolutions, but few actually keep up with them after the first couple of weeks into January. Have you made a goal for 2017 to get out of debt? If you have, congratulations! Making the decision to get out of debt is the first step, but after that comes the difficult part. Maybe you have cut back your spending and made up a strict budget so you know where every penny goes. You may have even cut up your credit cards in an effort to stop using them. You could have got an extra job delivering newspapers or pizza on the weekend to add extra income. If you have done everything you know how to do to get yourself out of debt and it still seems like it is never enough, then it could be time to seek professional debt help. Debt settlement is for people who have exhausted their options on their own and just can’t seem to quite get a handle on their situation. I would like to explore debt settlement as an option for your debt in today’s post. If you need some extra debt help, keep reading as we talk more about debt settlement in Winnipeg.
What is Debt Settlement?
Debt settlement also known as debt restructuring is an option where a debtor who can no longer pay back the full amount of their debt makes a proposal to their creditors to pay back a portion of the original amount on different terms than what they originally agreed on. The proposal is a legal process that is filed through a Licensed Insolvency Trustee (LIT) and it can help lower the total amount of debt substantially. When a proposal is filed and accepted by the creditors, interest will immediately stop accumulating. The new lower amount of debt is paid over a set amount of time (up to 60 months) in monthly payments.
Debt restructuring is a good option for people who have debt that they cannot handle and are trying to avoid a bankruptcy. The creditors would rather not see you go bankrupt as they would receive little to nothing of their money in return. With a consumer proposal, the creditor receives more of their original money so they are likely to agree to the proposal.
Where Can I File a Consumer Proposal?
Consumer proposals can only be filed through a LIT, however you are entitled to your own personal representation to help ensure the proposal is structured on your terms and ensure the impact on your credit report is minimized. We at 4 Pillars Consulting represent our clients as they go through the process of filing a consumer proposal. We work strictly on behalf of the client so we do our best to get the best deal that we can so our clients can afford the repayment plan. Once the proposal is accepted our job isn’t done, that’s when we move on to the next pat of the plan and ensuring you have a comprehensive plan to rebuild your credit in the shortest time possible and how to use the extra cash flow to create financial stability for you and your family.
If you would like to learn more of the benefits that 4 Pillars Consulting Winnipeg can offer you, give us a call at (204) 201-2100. We offer a free one hour consultation where we discuss your situation, answer your questions and present you with your options.