With all the payments that you have to make at the end of the month including utility bills, mortgages, car payments and credit card payments, it comes as no surprise that you may miss a few payments here and there. When you begin to fall back on your payments it becomes harder and harder to catch up and with that, debt begins to develop. If you have trouble, managing your finances or handling your debt York Credit Services is the company to call. We provide a variety of financial management services to help you manage debt budget and plan your finances. We have a team of professional credit counselors who will help you in the process to being debt-free and improving your financial status.
Debt consolidation is the process of taking out one single loan to pay off various creditors so you do not have to make multiple payments at the end of the month. It is simply consolidating all your debts to one single loan that you can conveniently service at the end of the month. This means you do not have to worry about making multiple payments or keeping track with various creditors. It also means you’ll be receiving fewer calls from debt collectors. The debt consolidation loan that you choose to pay off all your debts should be at a low interest rate and have convenient monthly payment amounts that you can afford to pay within your current income.
At York Credit Services the debt consolidation process is quite detailed to ensure that we come up with the best possible solution. Every debt situation is unique and this is why our approach is customized for each client. The following are the vital steps we need to take to ensure that the debt consolidation process is effective
Credit counseling involves speaking to a professional credit counselor who can provide sound professional advice on financial matters. When you meet with the credit counselor expect them to ask you a lot of information about your current debts, outstanding payments, income budgets and expenditures and so on. It is important to be completely honest with the credit counselor so they can advise accordingly based on your individual financial situation. Our credit counselors operate ethically and honestly and will ensure that all information shared during these sessions will be kept confidential. The credit counseling process aims to cover the following main points:
What is your current financial challenge?
How did you end up in this situation in the first place?
What trouble are you having making your monthly payments?
What payments are outstanding and for how long?
What do you need to eliminate this outstanding payments?
Once you and the credit counselor have identified the areas of challenge, the next step would be to choose a suitable debt consolidation loan to repay your creditors. We can contact the creditors and negotiate for a full payment and waiver of penalties and late payment fees. A lot of creditors will agree to full payment of outstanding loans given that the debtor has financial challenges and has not been able to make the monthly payments. The full amount that you need to be pay to all the creditors together is what you need to take out in the debt consolidation loan.
When choosing a suitable debt consolidation loan, we aim to find a loan with low interest rates affordable monthly payments based on your current income and a suitable long time. In some situations when your credit is good, you can apply for a 0% interest rate credit card to pay off unsecured loans. This is really advisable when the outstanding loan amount is small.
However if you have a huge debt, personal loan would be most suitable to use for debt consolidation. The personal loan allows you to pay your debt over time. We will calculate the personal loan monthly payment rate according to your income and therefore it should be an amount that you are able to comfortably pay at the end of the month. Additionally the personal loan that you take may improve your credit score by moving the bad credit card debt to the installment loan column.
Our Mississauga debt relief specialist will work closely with you to find the right debt consolidation loan. At this point you will need to create a budget plan that you’ll use over the next couple of months or years in order to finance these payments. The budget plan will guide how you spend your monthly income allowing you to make savings repay the personal loan and meet your expenditure needs.
The debt consolidation process depends a lot on your personal decision to make a change in your life. We cannot ignore that you are responsible for allowing your finances to get to this point. You will need to make some lifestyle changes in order to accommodate the debt consolidation plan. One of the things you need to do is to avoid spending on credit so you do not increase your number of creditors. You will also need to stay within budget for a couple of months until your financial situation is stable. Avoid excessive spending on luxury items that you do not really need until you’re able to finance all your payments comfortably. Saving is also an important part of recovering from debt. Our credit counseling process is also a good place to learn about the saving culture and making sound financial decisions.