There is a good discussion today regarding debt settlement for Canadians in the debt settlement discussion area.
Greg Roberts from CCDR.ca (Canadian Customer Debt Relief ) dropped by to answer some questions and get involved.
Debt settlement is when you settle your debts at a percentage of the original principal and interest owed.
WHAT HAPPENS WHEN PEOPLE GET INTO A BAD FINANCIAL SITUATION?
Being in a bad financial situation is usually very hard emotionally and physically on yourself and your family. You know that you need to pay your bills but don't have the cash to do so. Making more cash to pay your bills would cause even more stress on your already stressful situation.
If you're in a bad financial state, you're probably losing sleep, not eating well, feeling constantly exhausted etc. The pressures start to wear on your body and mind.
It's really easy to want out of this horrible situation, especially if you've been experiencing it for months or even years.
It's important to keep in mind that debt settlement is a bankruptcy alternative. Bankruptcy is stressful enough to go through by itself.
Debt settlement in Canada can help you stop the creditors from calling and also lower your payments. A company that offers debt settlement can also help you pay off your debts in a structured manner and take years less than a normal payment plan.
Before I talk about the next point, it's important to point out that Canadians can do their own debt settlement. They don't need to hire a company to do this. You have to consider the fact that if you're already tired and stressed out , you may not want to get into a big learning curve to save a few bucks.
Greg Roberts from CCDR.ca (Canadian Customer Debt Relief ) dropped by to answer some questions and get involved.
Debt settlement is when you settle your debts at a percentage of the original principal and interest owed.
WHAT HAPPENS WHEN PEOPLE GET INTO A BAD FINANCIAL SITUATION?
Being in a bad financial situation is usually very hard emotionally and physically on yourself and your family. You know that you need to pay your bills but don't have the cash to do so. Making more cash to pay your bills would cause even more stress on your already stressful situation.
If you're in a bad financial state, you're probably losing sleep, not eating well, feeling constantly exhausted etc. The pressures start to wear on your body and mind.
It's really easy to want out of this horrible situation, especially if you've been experiencing it for months or even years.
It's important to keep in mind that debt settlement is a bankruptcy alternative. Bankruptcy is stressful enough to go through by itself.
Debt settlement in Canada can help you stop the creditors from calling and also lower your payments. A company that offers debt settlement can also help you pay off your debts in a structured manner and take years less than a normal payment plan.
Before I talk about the next point, it's important to point out that Canadians can do their own debt settlement. They don't need to hire a company to do this. You have to consider the fact that if you're already tired and stressed out , you may not want to get into a big learning curve to save a few bucks.
- Things to think about when thinking about using a debt settlement service.
- A debt settlement plan with your creditors is not guaranteed. The creditor may or may not accept your proposal. They may also decide to sue you for the principal if you default on it.
- Debt settlement is very harsh on your credit report. The items that you settle will be given a R9 (bad debt, written off) status by Equifax Canada and TransUnion Canada.
- You should get some references from your proposed debt settlement company. Get some proof that they've settled debts of the same nature as yours.
The benefit of debt settlement is that you won't have to declare bankruptcy. Bankruptcy is a stigma that you'll have to tell future creditors about, and possibly future employers, landlords, life insurance companies etc. When you declare bankruptcy, you're put on public record as a Bankrupt & Insolvent person. This is a permanent record.
You can't be delisted from the public bankruptcy list, once you've declared for bankruptcy protection.
SEE Also: Debt Settlement discussion area
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