Monday 26 May 2014

Is Credit Counselling in Canada a Debt Consolidation?


We have all heard the commercials on the radio and television talking about debt consolidations and credit counselling. When you have a debt that is becoming increasingly difficult to pay, these may seem incredibly enticing – but it can be difficult to know what each one means, or if they are in fact even different. So, is credit counselling in Canada the same as debt consolidation, and if not, what is the difference?
Firstly, no, credit counselling is different from a debt consolidation. Many people confuse the two, but there are major differences. Both can represent significant debt relief, but each one requires a specific process that needs to be followed properly in order to be successful.
Credit counselling in Canada – credit counselling is usually not for profit and is usually funded by the bank or your creditors. With a credit counselling proposal, you are essentially going to your creditors and asking to have the interest on your debt frozen and for them to accept a reduced monthly payment based on your budget. If accepted, you make one payment to credit counselling and they disperse the money to your creditors. This means a single monthly payment for you, that you can afford, and drastically increases your creditors’ chances of being paid, on time, each month. 
Some things to keep in mind with credit counselling: it does not reduce your overall debt. Although your interest is frozen and your payments may be reduced, you are still on the hook for the entire amount. Additionally, with credit counselling in Canada, the damage to your overall credit rating is the same as in bankruptcy – all ratings turn into R7 and I7 for a period of 3 years from the date the proposal is paid in full.
Debt consolidation – A debt consolidation is when you are approved for a loan to cover the entirety of your debt. You then pay off your debt completely, and just pay that one loan on a monthly basis. With a debt consolidation, many of the same benefits are visible, such as one monthly payment and reduced interest, but without the damage to your credit.
When you have financial challenges and you want to consolidate debt into a single payment, you have a few options, including a debt consolidation loan or mortgage financing. Other options for debt relief may include a consumer proposal or bankruptcy. You viable options will depend on a number of things, including your credit, assets, budget and cash flow, and so it always helps to speak to a debt specialist to determine all of your options.
For more about debt consolidations and credit counselling in Canada, please contact DebtCare Canada today by calling 1-888-890-0888.

7 comments:

  1. Consult the world's leading business management consultants business management consultants and they will able to deal with all the financial and credit issues.

    ReplyDelete


  2. MY TESTIMONY FROM A LEGITIMATE MONEY LENDER
    Have you been looking for a loan?Do you need an urgent personal or business loan?contact Dennis Hopkins Finance Home he help me with a loan of $300.000 some days ago after been scammed of $2500 from a woman claiming to been a loan lender but i thank God today that i got my loan worth $300.000.Feel free to contact the company for a genuine financial service. Email: dennishopkins_financehome@live.com or dennishopkins69@yahoo.com or www.dennishopkinsfinance.de.vu Tel: USA +12404374240 .He is a trust worthy man.

    ReplyDelete

  3. Are you seeking for a legitimate lender from the internet? My name is Kathie Smith, from United State.please i want to advice you to beware of loan from the China and any part of Malaysia because they are all scammers. I have been scammed over 6 times until i came across a loan company from United State. They are so wonderful and serious minded company. I would advice you contact them if you are in need of loan of any kind(personal or business) because i got a loan from them without any stress after meeting their requirement. Their contact info is: http://www.dennishopkinsfinancehome.com/ or dennishopkins_financehome@live.com Tel: USA +12404374240

    ReplyDelete
  4. Good day Loan Seekers Solution for your financial problems......
    We are a fully registered and certified loan firm, that offers secured and unsecured loans to individuals and companies at a very low interest rate of 2%. We offer long and short term loans.Our company has recorded a lot of breakthroughs in the provision of first class financial services to our clients, especially in the area of Loan syndication and capital provision for individuals and companies. We have brought ailing industries back to life and we back good business ideas by providing funds for their up start. We have a network of Investors that are willing to provide funds of whatever amount to individuals and organizations to start business and operations.We are a group of energetic and experienced loan professionals with thorough knowledge of financial markets.In general we offer mortgages, home loans business loans and bad credit loans commercial loans, start-up- working capital loans construction loans car loans, hotel loans Xmas loans Our interest rate is 2% per annual repaid, our loan takes a maximum of 3 working days to get to all approved customers across the globe.You can contact us via

    elvinloancompany@yahoo.com

    elvinloancompany.bravesites.com

    +1(307) 213-2540

    ReplyDelete



  5. Are you in financial crisis, looking for money to start your own business or to pay your bills? I got mine from Him. My blank ATM card can withdraw $ 2,000 daily. I got it from Her last week and now I have $14,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it, it is not traceable and now i have money for business and enough money for me and my family to live on . *email: int.hackers002@gmail.com

    GET YOUR BLANK ATM CREDIT CARD AT AFFORDABLE PRICE
    *He sell this cards to all our customers and interested buyers worldwide,the card has a daily withdrawal limit of $5000 and up to $50,000 spending limit in stores and unlimited on POS.*

    *email: int.hackers002@gmail.com

    *you can also call or whatsapp us Contact us today for more enlightenment
    +1(301) 329-5298

    ReplyDelete
  6. Thank you for a very interesting article. I greatly appreciate the time you take to do all the research to put together your posts. I especially enjoyed this one!!
    Mortgage

    ReplyDelete
  7. What are your thoughts on these guys? https://financeadvicecentre.co.uk/bad-credit-mortgages/? I have bad credit so just weighing it up.

    ReplyDelete