An alternative to personal bankruptcy, it is an arrangement between the debtor and creditors. It is a legally binding agreement which allows for the debtor to arrange an amount for partial repayment of their total debts owed. It also offers protection from debt collectors and assets are not at risk either.

The process of replacing multiple smaller loans into one, large loan. Often, the larger loan will have a longer term as well as a lower interest rate. This process does not affect ones credit, but does generally require good credit.

This process is similar to a consumer proposal, wherein a negotiation is made between the debtor and creditor to pay a lump sum amount of the overall debts owed, making it easier to pay off the debts. However, creditors do not always accept the proposed settlement and can also be damaging to your credit score.

Involves credit counsellors doing a thorough analysis of the debtor’s financial situation and proposing a solution. The advisor will then negotiate with creditors and set up a single monthly payment plan until all debts are paid.

It is important to stay on top of your payments and organize your finances. Setting a budget or preparing a payment strategy is a key step in staying out of debt. However, if it is becoming difficult for you to keep up with the payments and you are falling behind, contact us and we will help you manage your money.