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Debt Strategies

Overview of debt options

Many people find themselves struggling with huge debt and no way to manage it. A sudden change in income, emergency, or other unforeseen events can knock anyone off their financial feet. Here, we compare 6 different strategies for managing debt. 

Here, we compare 6 different strategies for managing debt. For more in-depth information about how to control your debt, download our free debt management guide.

Choose your own Debt Strategy

WHAT IS IT?

Pros

Cons

A counselor reviews your financial situation, sets up lower interest rates with your creditors if possible, and creates a debt management plan for you to follow.

Pros

  • One monthly payment
  • Lower rates and fees
  • No collection calls

COns

  • Lenders may view you as credit risk
  • Principal debt not reduced
  • Credit card accounts closed
You take out one loan to pay off all your debt. This loan may carry a lower interest rate than your debts. You make fixed monthly payments on the loan until it is paid off.

Pros

  • One predictable monthly payment
  • Flexible terms
  • No credit impact

COns

  • Need good credit
  • No reduction on principal
  • Results vary
Requires you to work with a mortgage lender. You refinance your mortgage, taking out additional cash beyond the mortgage balance. You use that money to pay your debts.

Pros

  • High-interest debts paid off
  • Reduced monthly payments
  • Tax-deductible interest payments

COns

  • Need to own a home
  • Increased foreclosure risk
  • Adds to mortgage debt
Working with a company, you make monthly deposits into an account. The company negotiates with your creditors to accept less than the debt owed. That amount is then paid to creditors, from the account you deposited into until the debt is resolved.

Pros

  • Significant savings over making minimum payments
  • One low monthly program deposit
  • Faster than making minimum payments

COns

  • Debt collection calls
  • Legal risk, impact to credit
  • Results vary

A legal process. Financial positions is evaluated and used to assess payment plan to pay off your debts.  Once proposal is complete, you are relieved of the debt obligations you had before filing proposal.

Pros

  • Debt obligation be cleared and principal could be reduced
  • Creditors are barred from attempting to collect on debts
  • Debt free in only 2-5 years

COns

  • Impact to credit
  • Credit card accounts closed
  • Results vary
Using various online and offline tools, you determine the exact payments required for each debt and track your progress as you go.

Pros

  • Optimized payments
  • No required costs
  • No credit impact

COns

  • Requires strict budgeting
  • Interest rates don’t change
  • No reduction on principal

Debt RELIEF STARTS WITH YOUR FREE EVALUATION

Our Certified Credit Counsellor will:
  • Walk you through all the debt relief options available
  • Review your financial situation
  • Talk with you to understand your goals and hardships
  • Evaluate whether or not you may qualify for our program

Need help? Contact us to know your options.

Please  complete the form to see if you Qualify

Get Our Free Guide: How to Manage Debt

  • Should you be worried about debt? Find out.
  • Learn 5 smart ways to manage debt.
  • Get help choosing the right debt solution.

You'll also get a series of emails offering more tips and support for managing your debt.

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