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Debt Consolidation in Scarborough

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Improving Your Finances Through Credit Counseling

Do you have a hard time managing your finances? Do you often find yourself with more month at the end of the money? Are you falling back in your payments to your various creditors? If any of this applies to you then you are the ideal candidate for York Credit Services. We provide a variety of financial and credit solutions to individuals struggling with money management problems. Managing money is not easy for the average person when you have piles of bills to pay and creditors too. This can put you in tough financial situation when the debt starts getting out of hand.

In order to understand the root of the problem and to come up with a suitable solution you need to undergo the credit counseling process. Scarborough credit counseling is carried out by a licensed professional counselor. At York Credit Services we believe that financial information should be fully and widely available to everyone. And this is why we make our credit counseling process extremely exhaustive. This process is designed to empower and equip our clients with financial information that will help them reduce their debt and improve their financial situation altogether.

Scarborough Debt Consolidation Loan

A debt consolidation loan allows you to pay off all your outstanding debt and get a single big loan that you can clear within a specific period. These loans are often offered by banks and credit unions throughout Scarborough. If you have multiple outstanding debts that you’d like to bring together and make a single payment every month that’s easy to track, this could be an option for you.

Advantages of debt consolidation loans

One major advantage of this type of loan is that it only gives you one payment to worry about. You are most likely going to save money because the loan is offered at a lower interest rate. You can even pay off the debt within a shorter time, say two to five years and pay lower interest rates. The fees charged to set up a debt consolidation loan are also usually very low. The major drawback is that you may not qualify for this kind of loan if you don’t have security. You will also need to have a good credit rating in order to qualify for a debt consolidation loan. Speak to our debt relief expert to advise you on the options you have for consolidating debt.

Another option to consolidate your debt is to take a loan that uses your home as collateral to pay off multiple creditors and remain with a low-interest loan to pay each month. One major advantage of a second mortgage is that you can borrow a significant amount. You’re able to offset large loan balances with a second mortgage if you’ve gathered adequate equity in your home. Additionally, the interest rates offered on second mortgages are usually low since your home acts as collateral. You may even qualify for some tax credits when you take a second mortgage depending on how much you qualify for.

Drawbacks of second mortgages

With a second mortgage, remember that you’re putting your home on the line. Should you miss payments, you risk taking your home through foreclosure which has negative impacts for you and your family. If you’re looking for financing to cater for entertainment or basic living expenses, a home equity loan is not the best option. This loan can be expensive since you have to pay extra fees for appraisals, credit checks, and other closing costs.

While it’s always important to have more than what you need to cater for your expenses in your checking account, sometimes mistakes and surprises happen, and your account runs dry. An overdraft line of credit on your checking account allows you to access funds when you have an emergency or need to cover expenses to avoid bouncing checks or missed payments. When you use the line of credit, you will pay some interest on the amount you borrow. Often, the interest
rates charged on lines of credit are much lower than the traditional credit cards.

There are several drawbacks to using overdraft lines of credit. In many cases, individuals have found themselves unable to sustain the interest rates accrued after taking an overdraft. In simple terms, having access to a line of credit allows you to keep spending in emergencies which is sometimes dangerous. Since you know that you have overdraft protection, you may be tempted to spend way beyond your means every month. It’s still important to keep track of your checking account and know when you’re running low on funds. These lines of credit can be expensive if you use them too often.

You may consolidate high-interest credit card debt to a different card with a lower interest rate. If you choose to go this route, all the credit card balances you have from multiple creditors will be shifted to a different card with more reasonable fees. Many banks have balance transfer offers with low fees and sometimes offer a grace period to help individuals tackle the principal amount
of the loan. This APR is likely to rise after the introductory period lapses. This means that you will pay higher monthly fees after the introductory period is over.

When you qualify for a credit card balance transfer at a low-interest rate, you can pay more of the principal of your loan. This lowers your debt in the long-term and gives you flexible monthly repayments. However, you need to remember that credit card transfers are considered new credit applications. They could potentially lower your credit score in the short term. To determine if this is a debt relief option that you should pursue, speak to a debt relief expert. Our experts
would be happy to discuss with you the options you have to become debt-free sooner than you expect.

Sometimes your financial strain is caused by a lack of income that prevents you from fulfilling your obligations. If this is the case, you can approach a credit counseling organization to assess your situation. They may recommend joining a debt management program. This program allows you to pay off your debts faster with little if any interest rates. Your credit counselor works on a proposal and submits it to your creditors then engages in negotiations to secure the best terms for your loan. You can only begin making payments once all the creditors in the program have agreed to the stated terms.

Benefits of a debt management plan

One of the main advantages of entering this program is that you’ll no longer have to deal with numerous debt payments or due dates. Additionally, the credit counselor can negotiate with your creditors and you’ll end up paying low-interest charges. In some cases, you may end up paying no interest at all. The best part is that the credit counselor offers you all the support and advocacy you need to get back on track with your financial goals. These experts work on your behalf to ensure you get the best possible terms from your creditors.

+ Debt Consolidation Loan

A debt consolidation loan allows you to pay off all your outstanding debt and get a single big loan that you can clear within a specific period. These loans are often offered by banks and credit unions throughout Scarborough. If you have multiple outstanding debts that you’d like to bring together and make a single payment every month that’s easy to track, this could be an option for you.

Advantages of debt consolidation loans

One major advantage of this type of loan is that it only gives you one payment to worry about. You are most likely going to save money because the loan is offered at a lower interest rate. You can even pay off the debt within a shorter time, say two to five years and pay lower interest rates. The fees charged to set up a debt consolidation loan are also usually very low. The major drawback is that you may not qualify for this kind of loan if you don’t have security. You will also need to have a good credit rating in order to qualify for a debt consolidation loan. Speak to our debt relief expert to advise you on the options you have for consolidating debt.

+ Second mortgages

Another option to consolidate your debt is to take a loan that uses your home as collateral to pay off multiple creditors and remain with a low-interest loan to pay each month. One major advantage of a second mortgage is that you can borrow a significant amount. You’re able to offset large loan balances with a second mortgage if you’ve gathered adequate equity in your home. Additionally, the interest rates offered on second mortgages are usually low since your home acts as collateral. You may even qualify for some tax credits when you take a second mortgage depending on how much you qualify for.

Drawbacks of second mortgages

With a second mortgage, remember that you’re putting your home on the line. Should you miss payments, you risk taking your home through foreclosure which has negative impacts for you and your family. If you’re looking for financing to cater for entertainment or basic living expenses, a home equity loan is not the best option. This loan can be expensive since you have to pay extra fees for appraisals, credit checks, and other closing costs.

+ Lines of credit or overdraft

While it’s always important to have more than what you need to cater for your expenses in your checking account, sometimes mistakes and surprises happen, and your account runs dry. An overdraft line of credit on your checking account allows you to access funds when you have an emergency or need to cover expenses to avoid bouncing checks or missed payments. When you use the line of credit, you will pay some interest on the amount you borrow. Often, the interest
rates charged on lines of credit are much lower than the traditional credit cards.

There are several drawbacks to using overdraft lines of credit. In many cases, individuals have found themselves unable to sustain the interest rates accrued after taking an overdraft. In simple terms, having access to a line of credit allows you to keep spending in emergencies which is sometimes dangerous. Since you know that you have overdraft protection, you may be tempted to spend way beyond your means every month. It’s still important to keep track of your checking account and know when you’re running low on funds. These lines of credit can be expensive if you use them too often.

+ Credit cards

You may consolidate high-interest credit card debt to a different card with a lower interest rate. If you choose to go this route, all the credit card balances you have from multiple creditors will be shifted to a different card with more reasonable fees. Many banks have balance transfer offers with low fees and sometimes offer a grace period to help individuals tackle the principal amount
of the loan. This APR is likely to rise after the introductory period lapses. This means that you will pay higher monthly fees after the introductory period is over.

When you qualify for a credit card balance transfer at a low-interest rate, you can pay more of the principal of your loan. This lowers your debt in the long-term and gives you flexible monthly repayments. However, you need to remember that credit card transfers are considered new credit applications. They could potentially lower your credit score in the short term. To determine if this is a debt relief option that you should pursue, speak to a debt relief expert. Our experts
would be happy to discuss with you the options you have to become debt-free sooner than you expect.

+ Debt management program

Sometimes your financial strain is caused by a lack of income that prevents you from fulfilling your obligations. If this is the case, you can approach a credit counseling organization to assess your situation. They may recommend joining a debt management program. This program allows you to pay off your debts faster with little if any interest rates. Your credit counselor works on a proposal and submits it to your creditors then engages in negotiations to secure the best terms for your loan. You can only begin making payments once all the creditors in the program have agreed to the stated terms.

Benefits of a debt management plan

One of the main advantages of entering this program is that you’ll no longer have to deal with numerous debt payments or due dates. Additionally, the credit counselor can negotiate with your creditors and you’ll end up paying low-interest charges. In some cases, you may end up paying no interest at all. The best part is that the credit counselor offers you all the support and advocacy you need to get back on track with your financial goals. These experts work on your behalf to ensure you get the best possible terms from your creditors.

credit counseling session

During a credit counseling session you should expect the credit counselor to ask a load off private information about your finances. The counselor will need to know about your current income, spending habits, number of debts and any interaction that you ever had with debt collectors. You may need to back up this information by providing personal credit card statements and proof of income among other documents.

It is extremely important to be very open and honest through the credit counseling process. The information you provide will guide the counselor in giving you the most suitable options to solving your financial problems. The credit counselor may recommend anything from joining a debt management program, getting debt relief, creating a consumer proposal or applying for bankruptcy, which is usually the worst-case scenario. Giving accurate and updated information is important to the budget and action plan that will be created by the credit counselor after the counseling session.

Credit counseling process

A budget and action plan is crucial to the credit counseling process. Making bad financial decisions or falling into unfortunate financial situations is what led to having bad credit in the first place. A budget and action plan should be set in place as a guideline to avoid making the same mistakes in the future, helping you stick to the plan and also helping you achieve specific financial goals of the end of the process. Our credit counseling services are not only designed to help you reduce or eliminate debt but also to improve your financial status now and in the future.

Getting into a debt management program is ideal when you have various creditors, which makes it difficult to follow up on all your payments. At York Credit Services we will manage your debt by receiving one convenient monthly payment, which we will distribute to your various creditors. Depending on your financial situation, your debt management plan can be implemented through Scarborough debt consolidation or consumer proposal.

Our specialists can solve your debt problems

Benefits of session

The credit counseling service can significantly help to improve or maintain your good credit score. As a Scarborough debt relief specialist, we know that having good credit is important if you ever expect to get any kind of financing from a lender. Your credit score is what informs the lender whether you are a credit risk or a good candidate for a loan. The credit counseling process will also give you valuable information that you would normally not know about creditors. Most of them are often willing to come to an understanding and develop customized payment plans with debtors who are unable to make their payments. You learn how to make repayment plans with your creditors and reduce your monthly payments interest rates and if you are lucky, penalties too.

If you are committed to the credit counseling process and complete all of your sessions your financial problems will be over in no time. The kind of advice that you’ll receive will help you in your journey to better financial management and financial stability. You can even start thinking of achieving greater financial goals like starting a new business or buying a new home.

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

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