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Debt Consolidation in Barrie

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The Debt Consolidation Process

At York Credit Services, we believe that attaining financial relief from burdening debt is a process that takes careful consideration, professional input and a concrete plan for the future. We offer a wide variety of credit services including debt consolidation, credit counseling and our Barrie debt relief specialist is always on hand to assist in the debt process. Taking the step to change your financial situation will make a huge difference in your life. Not only will you enjoy your hard-earned income better but also enjoy the financial liberation that comes from being debt free and in control of what you owe.

Taking a Debt Consolidation Loan in Barrie

If you’re struggling to gain financial freedom by getting out of debt, one option would be to get a debt consolidation loan. These types of loans are offered by credit unions, finance companies, and banks across Barrie. With this kind of loan, you have only one payment to deal with every month. It makes managing your debt easier than handling multiple payments to creditors every single month. A consolidation loan allows you to pay off all your outstanding debts after a period, typically two to five years.

Advantages of debt consolidation loans

The main advantage of taking a debt consolidation  loan in Barrie is that you only deal with one payment. The loan is also often given at a smaller interest rate and lower fees. A major drawback to this kind of financing is that you are unlikely to qualify for a debt consolidation loan if you don’t have security. Most banks will also give this loan to those with a good credit rating. If you don’t have any security, the interest rates charged on the consolidation loan are likely to be very high. To figure out if a consolidation loan is a good option for you, speak to our debt relief experts in Barrie.

Second mortgages are another popular option to consolidate debt. In this case, you would refinance your first mortgage or simply use your home equity loan to pay off high-interest debts. The amount of loan you qualify for will depend on the portion of the home that you own, also known as your home equity. The financial institution, typically a bank, will allow you to take a second mortgage in Barrie which acts as the new consolidation loan.

Why take a second mortgage?

This method of debt consolidation may or may not work for you depending on several factors. For instance, if you have high-interest debt, a second mortgage can allow you to save money by offering lower interest rates. Additionally, you may want to take this mortgage if you’re looking for more flexible payment terms. The only major drawback is the additional fees you’ll need to pay for setting up a second mortgage as well as the fact that you can’t qualify for a substantial amount if you haven’t gathered enough equity in your home.

There are secured and unsecured lines of credit or overdrafts given by banks and other financial institutions to help individuals offset their debts. These lines of credit are usually offered at lower interest rates compared to loans and you may also pay them with more flexible terms. Once given a line of credit or overdraft, you will be required to make a minimum monthly payment which caters for the amount you’ve spent to offset your debts. You can decide whether to pay for the line of credit in a short or long time depending on your financial ability.

However, many people have found themselves misusing lines of credit and overdrafts. If you do not have the discipline to get out of debt, you’ll end up using the money to get into further debt. There is also the risk of making higher monthly payments than what you had budgeted for if the Bank of Canada prime rate increases. With lines of credit and overdrafts, you need financial education on how to manage your spending or you’ll never get out of debt.

Another consolidation option is the use of credit cards. It’s simple how it works. You consolidate all your credit card balances into one card that offers a lower interest rate. This allows you to set a payment that you can make every month for the card. If you decide to offset the debt faster, you can choose to pay more than the minimum monthly payment. Credit cards that are offered at a low promotional interest rate can be used to consolidate debt. This gives you an opportunity to keep track of your expenses since you’re only making a single monthly payment. You also get more flexible payments to make which means in case of an emergency you just have to pay the minimum payment.

However, you may not qualify for a credit card at a low-interest rating if your credit rating is very low. Additionally, if you take the card that has a low promotional interest rate, it may expire within a few months. This means that you get back to paying high-interest rates which could have monthly repayments that are beyond your budget. Most importantly, a credit card requires a change of financial habits. If you continue with similar spending habits, you may just end up extending your debt for a long time to come.

Once you choose the debt management program route, you will be making payments to a credit counseling organization. This organization will, on your behalf, speak to your creditors by sending them a proposal that shows you are fit for the program. Your creditors must agree before you join the program. With this program, you may be able to offset all your debts within just 3 years and at a low-interest rate. The major disadvantage is that your credit rating will be affected until 2 years of completing the program.

Consult an expert for consolidation advice

Debt consolidation is a complex and sometimes overwhelming process that you may not want to undertake alone. It’s important to speak to an expert who will guide you on the options available and what’s best for your situation. Should you need someone to educate you on all your debt consolidation options in Barrie, York Credit is ready to assist. Don’t be discouraged when you’ve found no solution to offset your debts. We can help you figure out which debt relief options work for your unique situation. We are here to discuss all the options. Get in touch with us today.

+ Taking a Debt Consolidation Loan

If you’re struggling to gain financial freedom by getting out of debt, one option would be to get a debt consolidation loan. These types of loans are offered by credit unions, finance companies, and banks across Barrie. With this kind of loan, you have only one payment to deal with every month. It makes managing your debt easier than handling multiple payments to creditors every single month. A consolidation loan allows you to pay off all your outstanding debts after a period, typically two to five years.

Advantages of debt consolidation loans

The main advantage of taking a debt consolidation  loan in Barrie is that you only deal with one payment. The loan is also often given at a smaller interest rate and lower fees. A major drawback to this kind of financing is that you are unlikely to qualify for a debt consolidation loan if you don’t have security. Most banks will also give this loan to those with a good credit rating. If you don’t have any security, the interest rates charged on the consolidation loan are likely to be very high. To figure out if a consolidation loan is a good option for you, speak to our debt relief experts in Barrie.

+ Second mortgages

Second mortgages are another popular option to consolidate debt. In this case, you would refinance your first mortgage or simply use your home equity loan to pay off high-interest debts. The amount of loan you qualify for will depend on the portion of the home that you own, also known as your home equity. The financial institution, typically a bank, will allow you to take a second mortgage in Barrie which acts as the new consolidation loan.

Why take a second mortgage?

This method of debt consolidation may or may not work for you depending on several factors. For instance, if you have high-interest debt, a second mortgage can allow you to save money by offering lower interest rates. Additionally, you may want to take this mortgage if you’re looking for more flexible payment terms. The only major drawback is the additional fees you’ll need to pay for setting up a second mortgage as well as the fact that you can’t qualify for a substantial amount if you haven’t gathered enough equity in your home.

+ Line of credit or overdraft

There are secured and unsecured lines of credit or overdrafts given by banks and other financial institutions to help individuals offset their debts. These lines of credit are usually offered at lower interest rates compared to loans and you may also pay them with more flexible terms. Once given a line of credit or overdraft, you will be required to make a minimum monthly payment which caters for the amount you’ve spent to offset your debts. You can decide whether to pay for the line of credit in a short or long time depending on your financial ability.

However, many people have found themselves misusing lines of credit and overdrafts. If you do not have the discipline to get out of debt, you’ll end up using the money to get into further debt. There is also the risk of making higher monthly payments than what you had budgeted for if the Bank of Canada prime rate increases. With lines of credit and overdrafts, you need financial education on how to manage your spending or you’ll never get out of debt.

+ Credit cards

Another consolidation option is the use of credit cards. It’s simple how it works. You consolidate all your credit card balances into one card that offers a lower interest rate. This allows you to set a payment that you can make every month for the card. If you decide to offset the debt faster, you can choose to pay more than the minimum monthly payment. Credit cards that are offered at a low promotional interest rate can be used to consolidate debt. This gives you an opportunity to keep track of your expenses since you’re only making a single monthly payment. You also get more flexible payments to make which means in case of an emergency you just have to pay the minimum payment.

However, you may not qualify for a credit card at a low-interest rating if your credit rating is very low. Additionally, if you take the card that has a low promotional interest rate, it may expire within a few months. This means that you get back to paying high-interest rates which could have monthly repayments that are beyond your budget. Most importantly, a credit card requires a change of financial habits. If you continue with similar spending habits, you may just end up extending your debt for a long time to come.

+ Debt management program

Once you choose the debt management program route, you will be making payments to a credit counseling organization. This organization will, on your behalf, speak to your creditors by sending them a proposal that shows you are fit for the program. Your creditors must agree before you join the program. With this program, you may be able to offset all your debts within just 3 years and at a low-interest rate. The major disadvantage is that your credit rating will be affected until 2 years of completing the program.

Consult an expert for consolidation advice

Debt consolidation is a complex and sometimes overwhelming process that you may not want to undertake alone. It’s important to speak to an expert who will guide you on the options available and what’s best for your situation. Should you need someone to educate you on all your debt consolidation options in Barrie, York Credit is ready to assist. Don’t be discouraged when you’ve found no solution to offset your debts. We can help you figure out which debt relief options work for your unique situation. We are here to discuss all the options. Get in touch with us today.

Debt consolidation is one of our specialties

We can combine your various unsecured debts and create one bill to pay them off with a single loan. With the economic crunch over the past couple of years, a lot of adults today with good jobs are finding themselves burdened with student loans, car payments, medical bills and credit card payments among others. With time, all these debts can become overwhelming and it is not surprising finding a missed payment here or there. This is how bad debt begins to build up. The more you lose control over the payments the more difficult it becomes to satisfy all payments as required every month and still live a comfortable life. This is when debt consolidation comes to the rescue.

There are several ways in which debt consolidation works to reduce or get your debt under control. You can get into a debt management plan, get a debt consolidation loan or opt for debt settlement. We need you to understand that none of these is quick fixes towards your debt problems. However, they are long term solutions that will ease the burden and help you regain your financial stability while getting out of debt. These processes will help you to lower your interest rates, lower the amount of monthly payments to make, improve your credit score and ultimately help you get out of debt faster.

The debt consolidation process you choose to implement depends on a couple of factors. You will speak to a credit counselor who will ask in-depth questions about your finances and determine the amount you owe. Debts of less than three thousand dollars can be taken care of using a zero-percent interest credit card while transferring balances from the high interest rate credit cards. However, bigger debts will require much more detailed interventions like personal loans, refinancing your mortgage and so on. The Barrie credit counseling session can shed a lot of light on the options you have and your next best move in the debt consolidation process.

The debt management plan is a good option for large debts

Through the debt management plan, you can get lowered interest rates from creditors, reduced or waived late fees and a financial resolution plan. This long term process involves sending one payment to the agency which will be split among your creditors until your debt is fully paid off.

A debt consolidation loan

You can choose to get a debt consolidation loan so you do not have to make multiple payments to your different creditors. The debt consolidation loan is quite helpful when you have a large number of creditors so you do not have to worry about remembering to make payments to each of them. A lot of people are often afraid to take on debt consolidation loans because of the long repayment period. When working with a credit professional, you can be assured of getting the best repayment means for your financial needs.

Make changes

One important factor to understand about the Barrie debt consolidation process is that you cannot continue to live the same way as you did before. Your financial mistakes are probably what led you to the crippling debt in the first place.

Life adjustments

Therefore, you will need to make some serious life adjustments once you are in the program. The credit counselor will advise you on the changes you need to make to satisfy your agreement with agency and clear your debt. In most cases, it involves reducing luxury expenditure, working within a budget and saving as much as you can. If you are committed to the process, you will be debt free in the shortest time possible.

“We are committed to reducing your debt and getting you back on the right financial track.”

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