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Debt Consolidation in Bradford

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Declaring Bankruptcy and Bouncing Back with Bradford Credit Counseling

York Credit Services is your one stop credit agency for all your financial counseling needs. With the changes in the economy over the past couple of years, many people have found themselves in deep debt wondering how to reclaim a control over their finances. We provide a variety of services including Bradford debt consolidation, credit counseling and bankruptcy advice among others. Through bankruptcy, individuals whose finances have been hopelessly burdened with debt can get a chance to start a fresh. Many myths shroud the bankruptcy process and a lot of people often think of it as the worst-case scenario but it could just be the best way for you to take care of your debt problems.

Debt Consolidation Loan in Bradford

One approach to get debt help would be to take a debt consolidation  loan. These
loans are offered by banks, credit unions and finance companies to help individuals pay off their outstanding debts and have a single big loan to work with. One major advantage of this loan is that it gives you one payment to worry about each month. If you maintain good financial discipline and avoid getting into further debt after taking this loan, you will be able to offset all your debt with flexible monthly payments.

Why take a debt consolidation loan?

Debt consolidation loans are usually offered at a much lower interest rate compared to other standard loans. This means that you can pay off your loan within a shorter time, say two to five years and be charged low fees as well. The only major drawback to this kind of financing is that it’s mostly given with security. If you don’t have collateral, chances are that you will not qualify for this loan. Additionally, you need a good credit rating in order to access this financing. Should the bank or finance company give you a consolidation loan without security, expect to pay really high-interest rates.

A common option to consolidate your debt is to get a second mortgage. This is often known as refinancing a mortgage or taking a home equity loan. Your bank may be able to give you a loan based on the portion of the home that you own. The amount that you qualify for will depend on your home equity. The reason why it’s called a second mortgage is because the initial one is the loan you took to buy your home and hence this is a new consolidation loan.

Benefits of second mortgages

Second mortgages are usually offered at lower interest rates. Your home acts as security which means that the bank can give you more flexible payment terms that you can fulfill. However, you may not qualify for this type of loan if you haven’t gathered enough home equity. Additionally, you’re likely to pay extra fees for setting up the second mortgage which can make it even more expensive. To determine if a second mortgage is an ideal option for you, speak to our Bradford debt relief experts.

Another option to consolidate your debt is to take a line of credit or overdraft. Most people choose this option because of the small monthly repayments that are easier to settle. Once you take an overdraft or line of credit, there is a set minimum payment every month. You may choose to pay higher than the minimum if you want to offset your debt faster or simply stick to that amount. The main advantage of lines of credit is that it gives you very flexible
payment options.

However, there are some drawbacks to this method of debt consolidation. To start with, the prime interest rate can go up and this could mean that you will be required to pay higher monthly payments than what you had anticipated. Additionally, if you do not discipline yourself to pay a specific amount each month, you may end up paying the minimum and spending the rest getting yourself into further debt. Lines of credit should never be misused because they can cause you to never get out of debt. You’ll need to change your financial habits if you want this method of debt consolidation to work for you.

You may also choose to consolidate your debts using credit cards. This is also another popular option because it gives you a lower interest rate. You simply bring together all your credit card balances and make a single payment at the end of each month. The card has a set monthly repayment, but you can choose to pay more than that if you’d like to offset your debt earlier. Credit cards that have low promotional interest rates are often used to consolidate debt. The advantage of this method is that it allows you to make more timely payments because you only worry about a single payment each month. Additionally, if you have an emergency and you are unable to pay more, you can go back to making the minimum payment.

The major drawback of using credit cards for debt consolidation is that you may not qualify for the low-interest rate if you have a poor credit score. Additionally, once a promotional interest rate expires, you go back to paying high-interest rates. This method of consolidation, like all others, needs a change of spending habits if you want to clear up your debt once and for all. If not, you’ll end up using the credit cards to get into further debt.

Debts can also be consolidated by joining a debt management program. In this case, payments are made to a credit counseling organization which then forwards the respective amounts to your creditors. Once you approach a credit counselor, he/she will draft a proposal on your behalf and send it to your creditors. They must agree to the terms and conditions of the program before you start making any payments. Should you consider going this route, ensure that you find a reliable credit counselor who can help you to draft the proposal.

With a debt management program, you may pay off your debts within just 3 years. In many cases, you pay off the amount you owe with no interest rates. Upon completing this program your credit rating is likely to be affected. While the process of consolidating debt is overwhelming, an expert can help ease the burden by explaining to you what options are available and helping you make an informed decision. Whatever form of debt consolidation you’re looking at, we are happy to lift that burden off your shoulders and give you expert advice to get you out of debt fast. Get in touch with us for more information.

+ Debt Consolidation Loan

One approach to get debt help would be to take a debt consolidation  loan. These
loans are offered by banks, credit unions and finance companies to help individuals pay off their outstanding debts and have a single big loan to work with. One major advantage of this loan is that it gives you one payment to worry about each month. If you maintain good financial discipline and avoid getting into further debt after taking this loan, you will be able to offset all your debt with flexible monthly payments.

Why take a debt consolidation loan?

Debt consolidation loans are usually offered at a much lower interest rate compared to other standard loans. This means that you can pay off your loan within a shorter time, say two to five years and be charged low fees as well. The only major drawback to this kind of financing is that it’s mostly given with security. If you don’t have collateral, chances are that you will not qualify for this loan. Additionally, you need a good credit rating in order to access this financing. Should the bank or finance company give you a consolidation loan without security, expect to pay really high-interest rates.

+ Second mortgages

A common option to consolidate your debt is to get a second mortgage. This is often known as refinancing a mortgage or taking a home equity loan. Your bank may be able to give you a loan based on the portion of the home that you own. The amount that you qualify for will depend on your home equity. The reason why it’s called a second mortgage is because the initial one is the loan you took to buy your home and hence this is a new consolidation loan.

Benefits of second mortgages

Second mortgages are usually offered at lower interest rates. Your home acts as security which means that the bank can give you more flexible payment terms that you can fulfill. However, you may not qualify for this type of loan if you haven’t gathered enough home equity. Additionally, you’re likely to pay extra fees for setting up the second mortgage which can make it even more expensive. To determine if a second mortgage is an ideal option for you, speak to our Bradford debt relief experts.

+ Lines of credit or overdrafts

Another option to consolidate your debt is to take a line of credit or overdraft. Most people choose this option because of the small monthly repayments that are easier to settle. Once you take an overdraft or line of credit, there is a set minimum payment every month. You may choose to pay higher than the minimum if you want to offset your debt faster or simply stick to that amount. The main advantage of lines of credit is that it gives you very flexible
payment options.

However, there are some drawbacks to this method of debt consolidation. To start with, the prime interest rate can go up and this could mean that you will be required to pay higher monthly payments than what you had anticipated. Additionally, if you do not discipline yourself to pay a specific amount each month, you may end up paying the minimum and spending the rest getting yourself into further debt. Lines of credit should never be misused because they can cause you to never get out of debt. You’ll need to change your financial habits if you want this method of debt consolidation to work for you.

+ Credit cards

You may also choose to consolidate your debts using credit cards. This is also another popular option because it gives you a lower interest rate. You simply bring together all your credit card balances and make a single payment at the end of each month. The card has a set monthly repayment, but you can choose to pay more than that if you’d like to offset your debt earlier. Credit cards that have low promotional interest rates are often used to consolidate debt. The advantage of this method is that it allows you to make more timely payments because you only worry about a single payment each month. Additionally, if you have an emergency and you are unable to pay more, you can go back to making the minimum payment.

The major drawback of using credit cards for debt consolidation is that you may not qualify for the low-interest rate if you have a poor credit score. Additionally, once a promotional interest rate expires, you go back to paying high-interest rates. This method of consolidation, like all others, needs a change of spending habits if you want to clear up your debt once and for all. If not, you’ll end up using the credit cards to get into further debt.

+ Debt management program

Debts can also be consolidated by joining a debt management program. In this case, payments are made to a credit counseling organization which then forwards the respective amounts to your creditors. Once you approach a credit counselor, he/she will draft a proposal on your behalf and send it to your creditors. They must agree to the terms and conditions of the program before you start making any payments. Should you consider going this route, ensure that you find a reliable credit counselor who can help you to draft the proposal.

With a debt management program, you may pay off your debts within just 3 years. In many cases, you pay off the amount you owe with no interest rates. Upon completing this program your credit rating is likely to be affected. While the process of consolidating debt is overwhelming, an expert can help ease the burden by explaining to you what options are available and helping you make an informed decision. Whatever form of debt consolidation you’re looking at, we are happy to lift that burden off your shoulders and give you expert advice to get you out of debt fast. Get in touch with us for more information.

What is bankruptcy?

Bankruptcy is the process of surrendering all your personal assets to a licensed insolvency trustee to eliminate your debts. There are various exceptions depending on the province you live in that can allow you to retain some necessities. The thought of surrendering all your assets sounds very harsh but once you learn how bankruptcy works and how it helps with your debt problems, it will not sound like a bad idea after all. Our Bradford debt relief specialist will ensure to walk you through the process understanding all the stakes involved and how every move will work towards improving your financial status.

An important factor to keep in mind is that bankruptcy is a legal process and it is governed by federal law under the Bankruptcy and Insolvency Act. The law protects the honest debtors who are open to receiving relief from debt with all fairness to creditors. An added advantage of bankruptcy is the stay of proceedings, which will prevent creditors from taking any legal action against you or calling you to trace their debts.

Our specialists can solve your debt problems

When to file for bankruptcy

During our credit counseling session, we will exhaustively look into your current state of finances. This included any outstanding debts and duration of default, expenditures, incomes and anything else that could have led to your situation. This exhaustive session will determine whether you are eligible for bankruptcy or if any of our other debt management plans would be more suitable for you.

How long will bankruptcy last

The minimum time set by the court for bankruptcy is nine months. This is possible if this is your first time filing for bankruptcy and if you complete the various responsibilities of the process. You will receive an automatic discharge from bankruptcy.

In order to file for bankruptcy you need to be insolvent: owing more than $1000 and unable to meet your debts as due. Any person who has carried out business in Canada for the past one year can apply for bankruptcy too.

What happens after bankruptcy?

It is crucial to understand that only unsecured debts such as credit card debt, income tax debts, medical bills and student loans can be discharged when you apply for bankruptcy. Secured debts such as car loans and mortgages can be discharged when the asset placed as collateral is recovered by the creditors. Debts such as alimony or child support will need to be paid. This is why it is important to work with a credit agency that can help you organize the rest of your financial obligations while going through the bankruptcy process. Simply filing for bankruptcy does not get you out of the woods.

You will need to set up monthly meetings for Bradford credit counseling and make payments towards your debt management plan.

Why choose the bankruptcy process?

The bankruptcy process is designed to help you relieve your debts while keeping your dignity intact. The process is supposed to give you a fresh start. You will not be left with nothing if you apply for bankruptcy. There are some exemptions to items you can keep such as retirement savings, pensions and tools of your trade among other things. Once bankruptcy is discharged, your credit record will be clear and you can receive credit. Completing your bankruptcy as soon as possible, saving your money and keeping track of your credit will help you get back on track as soon as possible. You get to start over with healthy finances.

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

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