Debt Consolidation

DEBT CONSOLIDATION EDMONTON

Debt Consolidation via Consumer Proposal Service for Edmonton

These days it can feel like everyone is after your money. Between bills, loans, and expenses, it’s easy for your finances to get out of control and often times being deep in debt can feel like trying to climb out of a bottomless pit. You don’t have to do it alone! There are solutions out there to help you find your way out of any financial hole, such as a consumer proposal. At Edmonton’s Fox-Miles & Associates Inc., we can help to reduce and restructure your outstanding debt load using a consumer proposal. We believe that in most cases, consumer proposals are the best tools to quickly eradicate debt without adding any financial burden. Keep reading to discover the key differences between consumer proposals and debt consolidation; and why a consumer proposal is the preferred option at Fox-Miles & Associates Inc.

Fox-Miles & Associates Inc. provides the best debt solution for each client by personalizing the service to each unique circumstance. We help customers understand each step of the process as well, so you can avoid sliding back into debt in the future. So, let’s start by exploring exactly what a debt consolidation loan is, and how it may stack up against a consumer proposal.

WHAT IS A DEBT CONSOLIDATION LOAN?

Often, personal debt comes from many different sources, all with varying monthly fees and interest rates, and can quickly spiral out of control. A debt consolidation loan is a new loan obtained from a bank or financial company with the sole purpose of paying all your existing smaller debts at once. By combining your multiple debts together, or “consolidating” them, you now have only one monthly payment that fits within your budget.

The truth of the matter is that you aren’t exactly combining your debts, as this isn’t actually possible. Each of your various debts has a different interest rate, payment frequency, and set of repayment terms. What you are doing is taking the total amount of all your debts, taking that amount out in one large loan, and using the loaned money to then pay off each institution you are indebted to. The process of paying off your debt is now centralized into one payment.

WHEN IS THE RIGHT TIME TO GET A DEBT CONSOLIDATION LOAN?

Have you ever taken out loans to pay your bills? Or applied for a payday loan to make ends meet? It’s a cycle that can quickly get out of hand. The next thing you know, you are in debt to four or five different sources, with payments coming out of your bank account all throughout the month. This is when a debt consolidation loan can provide some advantages. People use debt consolidation loans to combine their outstanding debts to smaller loans, credit card balances, overdraft balances, bills, and even payday loans. A single loan from one source with one interest rate and one payment date can be less stressful to handle.

DISADVANTAGES OF CONSOLIDATION LOANS

It is the most common debt solution but may not be the best option around. There are some serious disadvantages, such as:

  • Increased Indebtedness: Debt consolidation companies charge several thousand dollars as fees. Some consolidators may even have a clause to collect their fee first before making any payments. These lead you to owe more in the long run.
  • No Control over Payments: If your consolidator decides to send zero or partial payments every month, there is nothing you can do about it.

WHY DO WE ADVISE CONSUMER PROPOSAL INSTEAD OF A DEBT CONSOLIDATION LOAN?

A consumer proposal is an offer you make to all your unsecured creditors. This is helpful as you pay down a portion of your debt. We advise you to choose this in the following situations where:

  • Your credit is severely damaged
  • You cannot pay for the proposed imbursement with a consolidation loan
  • You cannot combine all your debts
  • Your wages are being withheld by your employer

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CONTACT US TODAY!

Call us today and schedule a consultation to find out if a consumer proposal, rather than a debt consolidation loan, is the right decision for you. Don’t stress out another day more! We service most of Northern Alberta, including Edmonton, Sherwood Park, St. Albert, Stony Plain, Fort Saskatchewan, Spruce Grove, Leduc, Edson, and Hinton. There is relief to be found at Fox-Miles & Associates Inc.