How To Get Out Of Debt

  • By Jillian Taylor-Mancusi

Many people struggle with debt and have no clear path toward financial freedom. You work long hours and try to make wise decisions, but somehow, your debt never goes down. How can you get out of debt so you can begin to do the things you want and need to do?

This is a very common question many people ask. The key is to access a trusted professional who can advise and help you through the often confusing legal process.

Luckily, you do not have to do it alone. A Licensed Insolvency Trustee (LIT) will meet with you for free and provide you with the clear, specific steps you need to take to get out of debt and get your life back on track.

Learn How to Get Out of Debt – Any Type of Debt

It’s important to understand that making the minimum required payment on a credit card or paying off a loan in small payments simply prolongs the process. It takes much longer and ends up costing a lot more. A better option is to learn how to get out of debt fast through legal, effective methods. This can work for most types of debt:

  • Tax debts
  • Student loans
  • Credit cards
  • Collection accounts

If you are struggling to make payments and getting nowhere, one of our LITs can help you.

How to Get on Track Financially

Everyone’s needs are different so it is essential that you meet with a LIT to advise you of all your options. Take a closer look at some of the methods available to help you solve your financial crisis and then meet with one of our Licensed Insolvency Trustees. We offer free consultations to discuss your needs.

Consumer Proposals

When you work with a Licensed Insolvency Trustee, they may advise you to consider making a Consumer Proposal. This is a legally binding agreement to settle your debt in a way that is not according to the original terms. In short, they will approach your creditors with a new plan.

The benefit is that often your debt can be reduced by 70 to 80 percent. This involves you making agreed-upon payments for a portion of what you owe. You do not lose your assets during this process. However, you will pay down your debt consistently and have much of it eliminated.

With a Consumer Proposal, it is also easier to make your payments on time as you have just one payment every month. The payment is then divided up for you by the LIT and sent to each of your creditors. Additionally, your debt doesn’t continue to grow – a common problem many face when trying to make payments on time. That means you are not fighting interest. And, you no longer have to worry about wage garnishments or collection calls. They stop. You make payments. Your debts are paid back with much of it eliminated. You get to be debt-free.

Personal Bankruptcy

In some cases, people cannot afford to pay back even a percentage of what they owe. They could be suffering financially due to a medical issue and are unable to work or perhaps they have been laid off and have little income. In these situations, they need a method to help them get out of debt without having to commit to a long-term repayment plan.

Personal bankruptcy may be the answer. When you work with a LIT, they will advise you whether this is the best option for you. It may seem worrisome, but that’s because bankruptcy is commonly misunderstood. There are many benefits. For example, wage garnishment stops. Collection calls stop. If this is the first time you are applying for personal bankruptcy and you do not have surplus income, you may be able to be debt-free in as little as nine months.

You may not lose many, if any, of your assets. Most personal property is protected. If you own surplus property above the limits of the law, you may see some of those assets sold to repay your creditors. And, your creditors do have the right to object to the filing. Still, this is a method of becoming debt-free fast you may want to consider.

What Other Debt Relief Options Are Available?

To get out of debt, consider all your options and pick the one right for you. Our goal is to help you how to get out of debt with your best long-term interests at heart. That’s why we present each of your options to you, explain them, and then help you through the decision you make. Unlike other establishments aimed at profit, our goal is to help you make the best decision for you. Some other options may be:

  • Debt Consolidation. This is a method of securing a new loan to pay off existing smaller loans or debts. You must qualify for a new loan, but a lower interest rate and longer term can help make debt easier to repay.
  • Debt Settlement. For some creditors, receiving a portion of what you owe them immediately may be enough to cancel the rest of the debt. Discuss this informal arrangement option with your LIT if you have a sizable amount of cash on hand to help you.

To eliminate your debt, determine where you are right now. If you have a regular income, you may wish to realign your debt to make it easier to repay. If you have no ability to make payments or you need to get out of debt fast, bankruptcy may be your best option.

The first thing to do is meet with one of our Licensed Insolvency Trustees. They will review your situation and explain the advantages and disadvantages of each option so you can make an informed decision. We encourage you to call today to discuss your needs in a no-risk, no obligation, free confidential consultation. You can resolve your debt challenges and get a fresh financial start.

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