Debt consolidation Canada is a frequently used search term on the internet for a very good reason. It is a very popular process of combining one’s unsecured debts like credit cards and line’s of credit into one lump sum typically without interest or penalties. This allows you the debtor to actually pay off the principle amount of your debt, not just make interest payments to your creditors.
Debt consolidation Canada type programs have been in use for over 4 decades actually and are growing in acceptance and use. Utilizing an Options Credit Canada debt consolidation plan will allow you to reduce your total debt obligations and rehabilitate your credit over time. Options repays all of your Creditors at once; you have one single monthly payment that can be up to 70% less than you are paying now. What’s not to like?
Exploring a debt consolidation program could be one of the most important decisions of your life. This tried and true method of debt elimination has been used by millions of people with great success. To understand the process and exactly what is meant by the term debt consolidation Canada, read on!
The Debt Consolidation Process
The debt consolidation process is actually very simple. Options has pre-existing relationships with all the major creditors in Canada. We take your personal information and your list of debt and creditors and combine them into one streamlined amount. With your prior written agreement, called a “Letter of Consent” we contact those creditors advising them that you will be entering an Options debt management program.
This allows you to take advantage of our interest reduction/elimination agreements. The single monthly payment you pay into your debt consolidation Canada plan then is applied to your total debt load that now contains little or no interest. Your debts get paid off typically in less than 4 years.
Debt consolidation plans are really the only viable alternative to bankruptcy and have a much less damaging effect on your credit in the long and short term. This approach pays off 100% of the principle amount of the debt and is therefore looked on much more favourably by creditors than a bankruptcy.
Effect On Credit
While on a debt management plan you are considered an “R7″. That is a special designation that means you are in a voluntary debt repayment program. While you are an R7 it is expected that you will not take on or use unsecured credit.
In the longer term, your R7 will change once you “graduate” from your debt consolidation plan. It is not unusual for some creditors to start offering unsecured credit back to you in as soon as 6 months. Others can take longer-it is really up to the individual creditor and their internal lending policies.
Secured credit items like homes and autos can be purchased while you are on a debt management program. Our industry exclusive Options Express™ program is reserved for our best and most reliable Client’s. We are able to offer super deals to you from certified national vendors that are part of the Options Express™ program.
Debt Consolidation Eligibility
Unsecured debts of any kind are ideal for a debt consolidation program in Canada. That includes credit cards, lines of credit, overdrafts, personal and bank loans as well as utility and household bills. Secured credit means simply that the funds you borrowed are registered or secured against collateral property or assets you own like your home, vehicle or RRSP’s, stocks and bonds. If you have difficulty making payments the creditor has the option of seizing the asset or property you used as security.
To be eligible for a debt consolidation Canada program at Options we will need to assess your ability to repay your debts in 5 years or less (legal requirement). The initial interview will only take 10 minutes or less and covers your household expenses, income and overall debt load picture and can be done over the telephone for your convenience. Our consultations are free with absolutely no obligations on your part.
Once we approve you we take over completely. Your debt consolidation program with Options means that creditors can no longer legally contact you they must go through us. We handle all negotiations and correspondence with your Creditors. You make one convenient monthly payment to us and we distribute the funds to all of your creditors. It couldn’t be simpler!
Live a stress and debt free life. Contact us today for more information and good luck moving forward with your personal finances.