Most people have credit cards in this day and age. Sometimes you acquire too many or have a lot of medical bills you cannot pay off, or both. It feels like you are drowning in payments and cannot get ahead of the game. However, there are a couple of options that can help you get out of debt and save your sanity.
Credit Counseling Debt Management
Debt consolidation programs involve having a third party company manage your payments. You send them all your current statements for your credit cards, outstanding medical bills, and the like. They contact the creditors and negotiate monthly payments as well as interest rate reductions. Instead of paying multiple places, you pay the third party, and they send out the agreed up amount each month. Of course you would need to tack on a fee the debt management company charges. However, they usually reduce your payments to your creditors and get the debt paid off within a few years.
Consumer Proposal
Another viable option when looking for debt solutions in Moncton, NB is called a consumer proposal. A bankruptcy trustee works with you to first determine if you are eligible. Then they propose to your creditors why you cannot continue to pay off the full amount of your debt in the near future. You will agree upon a fixed amount you can pay within the next five years; which can be anywhere from one half the total amount or as low as twenty percent. The good part about a consumer proposal is you are now protected by law, just as you would be through a bankruptcy. The creditors can no longer call and hound you for payment. But, you get to keep your assets instead of liquidating them towards the debt.
Personal Bankruptcy
If you are unable to qualify for either of the two previous options or have a completely unmanageable debt, you may have to declare personal bankruptcy. As with a consumer proposal, you speak with a bankruptcy trustee about filing to have your unsecured debt discharged. Once the bankruptcy has been filed, your debts are frozen to prevent any legal action against them. Any secured debt you have on assets you want to retain, you have to continue making payments on it. Student loans are exempt for claiming them during bankruptcy.
When you have become overwhelmed with debt and can no longer continue making exorbitant payments to each of them, consider speaking with a bankruptcy trustee to determine if a debt consolidation program, consumer proposal, or personal bankruptcy are feasible options to squash the debt once and for all.
If you have any questions about debt solutions in Moncton, NB, please contact Powell Associates, Ltd. At (506) 870-8277.
