CONSOLIDATED CREDIT IN EDMONTON

If you are facing an uncertain financial future because of mounting financial debts, it might be time to consider consolidated credit as your debt relief solution.  Most commonly, debt solutions are either a consumer proposal, a consolidated credit loan, or declaring bankruptcy.  The Licensed Insolvency Trustees at Fox-Miles will work closely with you to understand your current financial situation.  Using this information, they will then present you with their recommendation on the debt relief solution that will work best for you.  Consolidated credit in Edmonton is one of your options.  Before choosing the best solution for you, it is crucial to understand how each option works and the positives and negatives that come with each of them.

Consumer Proposal

Understand How they Work at Relieving Your Debt

Consolidated Credit Loans

Get a Clear understanding potential downsides

Bankruptcy

Understand When This is the Best Option for You

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EDMONTON CONSOLIDATED CREDIT

WHY DO PEOPLE CONSOLIDATE THEIR CREDIT?

Consolidated Credit Loans are a common approach to debt relief.  People obtain debt consolidation loans for a variety of reasons:

  • Simplification: Instead of having to pay off several loans and debts, consolidation combines all debts into one monthly payment to one single creditor.
  • Potential Savings on Interest: There is the potential to save on interest payments by combining several high-interest sources of debt into a lower interest consolidated debt loan.
  • Potential to Reduce Monthly Payment: This will apply if you can secure a consolidated loan with a lower interest than you had on your debts. 
  • Potential to Pay off Your Debts Faster: Potential upside to consolidated loans only if you can secure a loan with a lower interest than on your previous debts.

VERY REAL DOWNSIDES TO CONSOLIDATING YOUR CREDIT

A consolidated credit loan plan on its own is not enough to help shape a healthier and more secure financial future for yourself.  In many cases, people who have used this option for debt relief are either:
 
  • Unbale to fulfill their monthly payment obligations
  • Often finish the loan with additional accumulated debt
 
The reality behind consolidated credit as a debt relief solution is that it is not nearly enough to be successful on its own.  Consolidated Credit plans frequently coincide with open and honest credit counselling along with drastic changes to lifestyle and spending habits.  If you do not change the practices that landed you in financial hardship in the first place, you will most likely find yourself in the same situation down the road.

CONSUMER PROPOSAL

THE ALTERNATIVE TO CONSOLIDATED CREDIT LOANS

A Consumer Proposal consolidates your unsecured debts into one monthly payment.  If the financial institutions have turned you down for a consolidation loan (or you have a consolidated loan and now owe on your credit cards in addition to your loan), a Consumer Proposal may be the answer:

  • A Consumer Proposal typically is not secured by any of your assets, whereas a Consolidated Loan maybe
  • A Consumer Proposal also offers counselling so that you receive tools for budgeting
  • A Consumer Proposal does not accumulate

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EXPLORE THE BEST DEBT SOLUTIONS OPTIONS FOR YOU.

If you have any questions about how to relieve yourself from debt properly, contact the Fox-Miles team.