Do You Qualify For a Debt Settlement?
While you are trying to evaluate your choices for a debt relief program, there are several factors that you need to consider:
- The time you’ll spend in a debt relief program before your debt is paid off
- How much will the program cost you and how much are you willing to spend.
- The effect of the program on your credit score and your willingness to endure the impact for you to get rid of your debt.
Furthermore, the most significant subject is whether you qualify the criteria of the debt relief solution. To start with, you may need to take a look at how you can qualify for a debt settlement.
In This Guide...
Understanding Debt Settlement
One of the legal debt relief options in Canada is debt settlement. Some of which are debt consolidation, credit counselling, consumer proposals, and others. A debt settlement is mainly crafted for individuals who are struggling with their debt and are not qualified for debt consolidation or credit counselling. However, the individual’s financial crisis should not be as critical as it can qualify for bankruptcy. If your unsecured debt totals to not more than $10,000, debt settlement is normally a favorable option for you.
Other Factors to Consider in Qualifying
Your maximum debt level is not the primary factor in determining your qualification for a debt settlement. Other factors also need to be considered.; such factors are as follows
Current Savings
Most creditors would likely settle for fixed payments or lump sum; thus, you should have current savings and other assets that can be disposed to help determine if debt settlement suits you. In cases wherein you have funds in your account that are not intended for retirement, debt settlement might be the best debt relief option for you.
Income
Your capacity to make payments on your current debt is also taken into account. If your income is not enough to supplement your monthly payments, bankruptcy might be the debt relief solution that will serve you best. However, each situation varies, some may qualify for a debt settlement program regardless if you can’t pay for your monthly obligation as of the present.
Particular Creditors
The creditors that you currently owe will also be a factor in your debt settlement. In cases, wherein your settlement provider is a formerly associated with the institution, the chances of negotiating on your behalf are extremely advantageous.
A Way To Know If You Qualify
There is only one way to figure out whether a debt settlement program serves you best. You have to seek reliable advice from the expert. Simply fill out the debt relief form and start to explore your options.
