Three Solutions Debt Consultants May Recommend

A common misconception people in and around Victoria have about debt is that there is only one way to approach the problem. In fact, in working with debt consultants, individuals and couples may find there are multiple options to consider based on the amount of debt, your income level, and other financial considerations.

Debt Consolidation

Debt consolidation includes taking out one larger loan at a low interest rate to pay off debt that is at a higher interest rate. Making one monthly payment avoids the possibility of missing any smaller monthly payments while also reducing the amount of interest paid out over time.

Debt consolidation does require the individual to qualify for a loan. Ideally, it is important to consider this before missed or partial payments to creditors negatively impact your credit score.

Consumer Proposal

A Consumer Proposal may be a recommendation made by our debt consultants. We will take the time to explain the process and how it can be used to address unsecured debt.

Our debt consultants do not have any involvement in a Consumer Proposal. This is managed by the Licensed Insolvency Trustee or LIT. We can discuss the pros and cons of this option with our clients to help them determine if this is the a possible debt management process.

Working with Creditors

In some cases, our clients choose to work directly with creditors after meeting with our debt consultants. This is often an effective choice if the debt is limited and the individual has the financial means to make extra payments to make the accounts current.

There are other options to consider as well. For more information on specific options for your debt, call 4 Pillars at 866-690-3328.