Debt Consolidation Winnipeg
What is Debt Consolidation?
There are numerous options for dealing with your debts. These include, among others, debt consolidation, bankruptcies, and consumer proposals.
Debt consolidation occurs when a person takes out a single loan to pay off a number of smaller debts. The idea is to replace multiple, high-interest debts with a single, unified or ‘consolidated’ loan. Contact Caplan Debt Solutions today if you are interested in discussing the mechanics, benefits, and pitfalls of debt consolidation. Winnipeg residents, and all residents of Manitoba, can schedule a free in-person consultation at their earliest convenience.
How Do I Qualify for a Debt Consolidation Loan?
Debt consolidation loans are generally offered by large financial institutions. The institution from which you seek your loan will determine the specific requirements. In general, though, consolidation loans require satisfactory credit scores and a steady income – if your credit is too low, or if you have insufficient income, you may want to consider a Consumer Proposal or filing for bankruptcy. In some cases, you may need to offer collateral – often your home – in order to qualify for a debt consolidation loan. Winnipeg residents can schedule a consultation with Caplan Debt Solutions to go over the details.
What Happens After I Consolidate?
The idea behind a consolidation loan is to pay off various other loans and debts. After this is done, your only concern will be paying off the consolidated loan. If, for whatever reason, you find yourself unable to make payments (loss of income, etc.) we will help you explore other options (bankruptcy, consumer proposal, etc.).
How Will My Credit Rating Be Affected?
This depends on how quickly you are able to pay off your debt consolidation loan. Winnipeg residents who are able to quickly and efficiently pay down their loan will see little or no impact to their credit rating. However, late payments or failure to make payments can have a negative effect. We can discuss your ability to pay your consolidation loan during a credit counselling session.
What are the Benefits of Debt Consolidation?
- It does not affect your credit rating if you make a settlement for 100% of the balance owing
- You don’t have to be concerned about whether or not your offer will be accepted by your creditors
- You can avoid filing for bankruptcy
- You will have no ongoing responsibilities to a Licensed Insolvency Trustee, be it submission of monthly income and expense reports or attendance at counselling sessions
- You will reduce multiple payments, likely at higher interest rates to one payment, making the debt easier to manage.’ to ‘You will reduce the number of monthly payments you have to make.’
- The monthly payments you do have to make may be lower. Credit card debt often comes with high interest rates, meaning soaring monthly payments. A loan with a lower interest rate means lower monthly payments.
- Lower monthly payments also means increased savings! The less you owe in interest payments, the more you’ll have to pay off your debts and bolster your financial position.
- It will be easier to keep track of your payments. Instead of paying down multiple loans, you can focus on paying down your single, consolidated loan.
What are Some of the Downsides of Debt Consolidation
- You still have to pay 100% of the balance that you borrow
- You still have to pay interest on your debt
- You don’t get the benefit of financial counselling from a qualified professional
- You don’t get an independent professional review of your financial situation by a qualified insolvency professional
- You may not qualify. Because most consolidation loans are provided by banks, the criteria for qualifying for a loan can be quite high.
- While a consolidation loan may help you resolve your debt issues, it may not solve the root cause of your financial problems. Contact Caplan Debt Solutions to schedule a credit counseling session today.
While a debt consolidation loan can help simplify and streamline your money issues, it doesn’t solve the root problem of your debt. Often, this root problem is simple money mismanagement. Our credit counsellors can help you address this problem and set you up for a brighter financial future.
Learn More About Debt Consolidation Winnipeg
Contact us today if you are considering a debt consolidation loan. Winnipeg residents can call to schedule a free, no-obligation consultation with a Caplan Debt Solutions licensed insolvency trustee (LIT) who will assess your options and provide advice to help you manage your debt. At Caplan Debt Solutions, we are committed to serving everyone we meet in a pressure- and judgement-free environment – it is our goal to “Get Debt Off Your Mind!”
You can feel confident at Caplan Debt Solutions that your financial future and well-being will be carefully looked after by a licensed debt restructuring professional.
We offer a no cost, no obligation, personal consultation so we can get to know you.
When we first contacted Bruce Caplan, we didn’t know what to expect. We had never had debt problems before and we had experienced very high levels of stress, anxiety and depression. Bruce talked us through various options and he recommended a consumer proposal. It was shortly after our meeting with Bruce that he contacted us and let us know we had a resolution. We highly recommend Bruce Caplan for debt solutions. He made it easy for us.
Bruce and Vera-Lynne