For the millions of people struggling with debt across Canada, it's not always easy to know what to do about it. There are lots of debt solutions out there, but how do you know which one is right for you? That's where we can help.
When you are struggling financially, the last thing you need to worry about is creditor harassment.
When you deal with your creditors yourself, they might keep calling or send letters demanding payment because they don’t want anything to do with someone who is not repaying their debts.
That’s where we can help. We can deal with creditors on your behalf, set up and manage your debt repayment program, and use our expertise to help you put your financial troubles behind you.
The team of specialists at A Fisher & Associates can offer you debt help to take care of all your unsecured debts, including:
Whatever kind of debt you’re struggling with, we can offer you the help and support you need to steer you out of debt and onto a better financial path.
A consumer proposal is a legal agreement between you and your creditors. If you are having trouble paying back your debts but can afford to pay some amount, this may be the debt relief option for you.
The process involves negotiating with creditors on what they will accept so that you can find an agreement which best suits both parties. A Licensed Insolvency Trustee (LIT) manages the process and any creditor which does not agree to the proposal can force you into bankruptcy.
With a consumer proposal in Ontario, there is no fee up front and all negotiations are done with your creditors, and monthly payments are based on your financial situation, so you’ll only pay what you can afford.
A debt management plan involves paying back your outstanding debts to each creditor through a single monthly payment, and reduce or eliminate the interest you are being charged.
Also known as a DMP, this debt relief solution is managed by a credit counsellor. They will work with your creditors on your behalf to come up with a proposal which suits everyone.
A DMP is available for borrowers who have a steady source of income and can repay what they owe if given some extra time. It can make payments more manageable when you are faced with debts you can’t afford to repay right away.
Credit counselling is when a debt professional – known as a credit counselor in Canada – works with your creditors to negotiate debt repayment terms which are more favorable for you.
The service involves you listing all of your debts and income in order for the credit counsellor to be able come up with a plan that suits both parties.
Credit counselling can be used by anyone who has financial problems but is not in immediate risk of bankruptcy, because they can work with companies to establish a payment schedule which works for you and ensures that you do not default on the credit agreement.
A debt consolidation program is the process of borrowing a lump sum – known as a debt consolidation loan – and using that lump sum to pay off your existing debts.
Debt consolidation is well-suited to people who owe debts to more than one creditor and who are struggling to manage multiple repayment plans.
Depending on the terms you are able to negotiate, a debt consolidation loan may allow you to replace multiple high-interest loans with a single, lower-interest loan, as well as making your repayment schedule more manageable.
Debt settlement is also called debt negotiation and it involves working out a payment plan with all of your existing creditors.
Debtors can usually reduce the amount they owe by paying less than full balance via a lump sum payment that creditors agree to, however you may still owe interest and charges on top of your debts.
Debt settlement offers are usually managed by debt settlement companies, who will negotiate with creditors on your behalf so that they accept less than your total debt.
A Licensed Insolvency Trustee (LIT) is an individual licensed by the Office of the Superintendent of Bankruptcy (OSB) to manage bankruptcy, consumer proposals, and other debt relief programs under the Bankruptcy and Insolvency Act (BIA).
A Licensed Insolvency Trustee can help you with bankruptcy and other debt solutions.
This person will give you advice about what to do, help you with paperwork, and make sure you follow the rules. It’s their job to make sure your interests are protected throughout the process.
Your LIT will also talk to your creditors for you. They will take phone calls on your behalf and represent you in creditor meetings where necessary, so you don’t have to worry about creditor harassment.
Debt relief programs work from the principle that if you are struggling with unmanageable debt, you should not have to repay your creditors a cent more than you can afford.
A debt relief program could help you:
No matter how daunting your financial situation is, there is always a way to deal with your debt. All you need is some support in choosing the best debt solution for you.
The impact on your credit score is dependent on the debt solution you choose. Some debt solutions will allow you to repay your debts in full, which should allow you to maintain good credit and have minimal impact on your ability to access loans, mortgages, and other financial products in future.
Other debt solutions will enable to slash your unaffordable debt and repay your creditors less than the total amount you owe.
While this is positive from an affordability standpoint, it signals to lenders that you are in the habit of paying less than you owe, and so will have a negative affect on your credit.
Although some debt solutions will lower your credit score, it’s important to remember that allowing your financial situation to deteriorate to the point where you fall into default will have a much worse impact on your credit score.
If you’re considering debt relief in Ontario, it’s important to seek expert advice from professionals like the team at A Fisher and Associates.
We’ll walk you through the process and make sure you understand exactly what you need to do to settle your debts.
We can help by working with your creditors directly, and we’ll arrange the payment plan that’s best suited for you and your individual financial situation.
To take the first step towards a debt free future today, talk to one of our specialist debt advisors for free on 416-842-0040