Why is it dangerous to use credit for emergencies?
Recently, a client told me that they’d like to keep one credit card that has a low interest rate and keep a line of credit for emergencies. It is far better to deal with your debts in a manageable way and set aside some money to be used in case of emergency. People often don’t…
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We were asked: What is the difference between debt consolidation and a consumer proposal?
We receive many questions regarding the difference between debt consolidation and a consumer proposal. Debt Consolidation vs. a Consumer Proposal A debt consolidation would require you to get a loan from a financial institution which would allow you to payoff your high interest debts and reduce your monthly payments. Consolidation loans are a popular way…
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In debt? Know your options.
Everyone trying to get out of debt has the same options to choose from: Deal with creditors directly Get a consolidation loan Form a debt management plan with a credit counsellor Make a consumer proposal File personal bankruptcy Your best option needs to be both affordable and effective. Use our Debt Options Calculator to determine…
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We were asked: Do you provide consolidation loans?
Consolidation loans are one of the debt settlement strategies we review with people but we’re not a lender. While consolidation loans are a popular debt settlement strategy there are a number of issues. Consolidation loans can be a solution for some people, but keep in mind the following issues: Getting approved for the loan Getting enough money…
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What happens when your consolidation loan isn’t keeping you out of debt?
KEVIN ASKED: Am I able to claim bankruptcy if I already consolidated my credit card, line of credit and overdraft debts into one consolidation loan? This person also has student and car loans that they’re paying, plus they just found out that they owe the government $3,400 in taxes. They feel like they’ll never get out…
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Is it possible to consolidate different types of debt into one payment?
CAMERON ASKED: I was just wondering if I could consolidate credit cards and a line of credit as one payment? ANSWER: There are a couple of ways to consolidate your credit card debts and line of credit into one monthly payment. You could talk to your bank about getting a consolidation loan. The goal of…
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Can you consolidate credit card debt?
LORI ASKED: Can I consolidate all my credit card debt into one LOW monthly payment without filing for bankruptcy? ANSWER: There are three ways to “consolidate” all of your personal credit card debts into one low monthly payment: Consolidation Loan Debt Management Plan Consumer Proposal Each of these options has advantages and disadvantages. To see how much each…
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Debts Included in a Personal Bankruptcy
There are several kinds of debt that can be included in a personal bankruptcy. Recognizing the kind of debt that is included in a bankruptcy and comparing them to your own debts can be the first step towards obtaining your fresh start. Some of the most common debts are: Tax debt Owing money to the government…
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Consolidation loans are a popular debt management option, but is it right for you?
Consolidation loans are a great way to manage your debt. If you can get one, it may be a great strategy for you to help you get out of debt. Using a consolidation loan to manage your personal debts will: Consolidate your personal debts into one monthly payment Reduce interest charges Will not damage your…
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Should I use my line of credit to pay off my debt?
We get asked this question a lot. Consolidating debt can definitely be a good strategy. The obvious advantage of consolidating your debt is that you reduce the interest you are paying. Therefore using your line of credit to consolidate your high interest credit card debt will definitely improve your situation and may help you to dig yourself out of…
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