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Drowning in Debt? Take Action

When you are facing down debt and financial troubles, it can seem like there is no end to the stress and turmoil it causes in your life; it feels as if you will never be able to get on top of it and be free of calls from lending institutions, banks, and collection agencies.

In fact, many people think that filing for bankruptcy seems like a better solution. In reality though, bankruptcy can have a lot of long term repercussions, including the following:

  • It presents difficulty obtaining future financial security or establishing sound financial relationships.
  • It does not eliminate all your debts and still leaves you responsible for things such as taxes and student loans.
  • There is a cost to file for bankruptcy, including filing fees, attorney fees, and much more.

Given that bankruptcy is not without its hurdles, it’s worth considering other options, like those offered by Chande & Company, before you proceed.

Consumer Proposal

A proposal is an offer to pay back what is owed to your creditors under a set of altered circumnutates. This may be under the specifics of a different time frame, or only a certain percentage of what is owed. It is a formal, legally binding process that is negotiated between you and a debt assistance company such as Chande & Company, whom then speak on your behalf to your creditors. When you opt for a consumer proposal, you are essentially offering to pay back what you owe debt collectors in the form of a consolidation loan. This means it is often only a percentage of what you owe and it is offered as a repayment plan, to both assure your creditors that you intend to pay, and to help you out so that you have more reasonable payment amounts.

While it is a better option than filing for bankruptcy, it is not going to solve your problems. You will still need to pay back money that you owe, cover the fees to have the proposal drafted, and then of course, work to repair your credit and financial stability with banks and financial institutions.

Debt Consolidation

A viable option for those with fewer loans of lower value, consolidating your debts involves combining all of your payments and bills into one. It is a manageable monthly payment with a lower interest rate than those of all your individual debts, and companies like Chande & Company specialize in helping clients take advantage of debt consolidation options.

Credit Counselling

An establishment like Chande & Company cares about you as an individual and want to help you get the best relief and success you can when it comes to facing down your debt and getting back on your feet. That’s why one of the options that we offer to our customers is credit counselling.

Credit counselling involves you working with a non-profit credit counselor who will do an assessment of all of your debts and who will create a Debt Management Plan for you. This is a yearly repayment plan, which sees you making pre-specified repayment amounts towards your debt over a three to five-year timeline. Once you establish this plan with your counsellor, he or she takes it to your creditors asking for their approval for your specified method of repayment. Should they accept, you will make monthly payments to your counselling agency, and from there, they will pay your creditors.

Working with a credit counsellor not only gives you professional help and guidance to ensure you are able to make the payments you need to, but it also makes it simpler and less overwhelming for you in paying down your debt, as now you make one payment to one place.

While you may have read into filing for bankruptcy as a viable option to clear yourself of debts and money hardship, in the end it may not be the most viable choice for your long term financial health. As you can see, there are lots of other alternative options which may result in a better long term outcome for you, and it is worth reaching out to debt relief professionals like Chande & Company to discuss these possibilities. Call them today and they would be happy to advise you accordingly.

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