How to Negotiate with Creditors
One of the ways to manage your debt is through suitable strategies in negotiating with creditors. You can free yourself from indebtedness by lowering your monthly payments and interests. You should then be proactive in communicating with your creditors to request in reducing your repayments. However, this can only be achieved if you have a good standing in making up to date payments. Once you attempted to negotiate, yet you get rejected, you can boldly inform your creditor in seeking to shift your balance to an able creditor. You can present your financial status in detail or writing to give the viewpoints of why you’re seeking to lower your payments. If this won’t work well, your next step is to seek a more serious approach to Debt Relief.
Debt Relief Alternatives for Canadians
If you’ve exhausted all possible means including negotiating with your creditors, then your next step is to consider technical and legal ways to clear off your debts.
- Credit Counseling — Credit counseling process involves the help of a financial professional that will consolidate a suitable plan to help you negotiate with your creditors. In this manner, your monthly expenses are evaluated to determine the necessary approach that will be appropriate to manage your finances. Besides, your advisor may also help you in requesting your creditor to extend your payment period and modify repayments and interest rates.
- Debt Consolidation — A much simpler approach in dealing with consumer debts is through debt consolidation. Debt Consolidation works by consolidating all your debts into a single monthly payment into cost-effective terms. This will make it easier for you to pay all your debts rather than paying to a bunch of creditors every month. By taking out the desired loan to cover your debts, you’ll be obliged to one payment terms with a minimal average than usual.
- Debt Settlement — If what you’re looking for is a quicker and more affordable way to knock down your debts, Debt Settlement is the most suitable way for you. Although your swimming into a mound of debt, you can work with creditors and debt collectors under a debt settlement company. A debt settlement company will then act on your behalf to negotiate with your existing creditors to pay your entire debts. By doing so, you can retain a good credit standing and more convenient and acceptable interest rates.
- Consumer Proposal – A Consumer Proposal is a formal and legal binding settlement that is carried out by a Licenses Insolvency Trustee (LIT). During this process, the bankruptcy trustee will guide you to manifest an offer to repay creditors a portion of what you owed or extend the period of your debt payments. In most cases, the maximum amount of your debt will decrease provided your debts are not over $250,000 and $500,000 for couples.
- Bankruptcy —When every possible option has been exhausted yet you’re unable to manage your payments, declaring bankruptcy is what’s left for you. Although claiming for bankruptcy will eventually take out all your unsecured debts, the consequences it bears is devastating as it will destroy your credit repute; plus, the amount of time that you need in compliance with the essential paperwork and pertinent documents.
Get Help through Debt Relief Today
Debt Relief is the only way that can help you knock down piles of debt. Simply fill out the debt relief form to get started with a debt solution that suits best for your situation.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.