Making the decision to restructure can be a difficult one for some people and it is important to understand both the benefits and implications of doing so.
Restructuring can significantly reduce the debt owed and vastly reduce your monthly payments by removing the financial pressure you face. It will also allow you to repay debt which you probably feel you will never repay. You need to look at dealing with debt as part of your long term plan and what is the cost of servicing the debt you have, is it stopping you contributing to your childrens RESP’s or your own RSP’s? If you choose to deal with your debt and stop living paycheque to paycheque, the tradeoff is you will take a hit on your credit rating. But with the proper plan, this can be minimized and the short-term hit is often worth it, as it allows you to actually meet your long-term financial goals and reduces the constant stress you feel from the debt you carry.
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