Because deciding to restructure can be difficult, it is vital to understand both the benefits and implications of doing so.
Restructuring can significantly reduce debt and vastly reduce your monthly payments by removing financial pressure. It allows you to repay a debt that once felt unsurmountable. You must make dealing with your debt part of your long term plan. Is the cost of servicing your debt, stopping you from contributing to your children’s RESP’s, or your RSP’s? When you decide to deal with your debt and stop living paycheque to paycheque, you will take a hit on your credit rating. However, with the proper plan, this can be minimized. The short-term hit is often worth it, as it allows you to meet your long-term financial goals and reduce the constant stress you feel from being in debt.