As a team of Licensed Insolvency Trustees and Estate Managers, Grant Thornton Limited can offer debt solutions other than personal bankruptcy. We can help you reduce your debt with services of debt consolidation at our Nanaimo, Victoria, Duncan and Port Alberni offices. If your credit card debt is piling up with out-of-control late fees and interest rates, your disposable income is shrinking too. By the time your debt reaches $20,000, paying it off can become nearly a lifelong struggle.
Let us carefully review your situation and customize a plan on how to best manage your debt load with an alternative to bankruptcy with a debt consolidation loan.
What is debt consolidation?
A debt consolidation loan is one large loan, usually from a bank, that pays off all of your creditors at once. You then have combined all of your smaller loans (credit cards and other qualified debts) into a loan with only one monthly payment to your lender. Compared to filing bankruptcy, debt consolidation does not discharge your debts but leaves you with a new loan to pay but with a lower interest rate. Also consolidation is not a debt settlement, where you negotiate with your creditors to pay off your debts in full at a lower amount.
Who can qualify for debt consolidation?
Debt consolidation is a debt management solution for people with a steady income or qualified for a loan from a third party. Consolidation loans from banks, credit unions or finance companies in British Columbia often require that you have good credit for an unsecured (signature only) debt consolidation loan. If your credit score has fallen because of late, missing or partial payments on your credit cards and other bills, you might still get the loan but pay a high interest rate.
A secured consolidation loan requires that you back up the loan amount with an asset of equal or more value as security. These loans cannot be used to pay off other secured like your car loan or mortgage. That’s because many secured consolidation loans take the form of a second mortgage or a Home Equity Line of Credit (HELOC).
What are the benefits of choosing debt consolidation?
There are some very valuable benefits to choosing debt consolidation at our Victoria, Duncan, Nanaimo, or Port Alberni locations. If you qualify, a debt consolidation loan helps you to take control of your finances. Rather than trying to juggle lots of payments to many individual creditors, you have one simple monthly payment that goes to pay off your consolidation loan. Not only does the payment plan relieve personal pressures, but it also gives you a perspective on how to balance your budget and even save money.
The other financial benefits of a consolidation loan include:
Are you not sure about the right approach to your overwhelming debt? Discuss debt consolidation in Nanaimo, Victoria, Duncan or Port Alberni with Grant Thornton Limited. Call to schedule a free and confidential initial consultation.