Make Going Debt Free Your New Year’s Resolution

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Do you feel like debt is keeping you from achieving your dreams and life goals? Do you lose sleep thinking about what would happen if you or your partner lost your job? Are you already harassed by collection calls and facing legal action from unsecured creditors?

It’s a New Year and a great time to re-evaluate your financial priorities and commit to new goals. The average debt in Ontario, excluding mortgages, is $21,794. If you’re feeling the pinch of credit card debt, car payments, utility bills, payday loans, or personal loans, you’re one of many people in the province who need to seek help with their debt. As interest accumulates on all of these loans, they can quickly outpace your ability to pay them back. When that happens, you’re considered insolvent and it’s time to book an appointment with a Licensed Insolvency Trustee.

Licensed Insolvency Trustees in Ontario handle Consumer Proposals and bankruptcy proceedings, as well as credit counselling for clients who find themselves in financial constraints due to debt. They can help you learn how to live debt free and consolidate your debt without simply adding to it. Whereas debt consolidation lenders will lend you a lump sum so you can pay debts now, often at a high interest rate, Licensed Insolvency Trustees renegotiate your unsecured debt with your creditors through a Consumer Proposal or manage the distribution of your assets during a bankruptcy.

If you’re ready to find out how you can reduce your debt in the New Year, take a look at what a Licensed Insolvency Trustee can do for you:

#1 Consumer Proposals in Ontario 

Licensed Insolvency Trustees are the only professionals who can file the Consumer Proposals Ontario consumers need to restructure their unsecured debt. When you approach a Licensed Insolvency Trustee like David Sklar & Associates, a Toronto firm that handles a large number of Consumer Proposals in Ontario, a professional first assesses your financial situation and advises you on the best way forward. If you are insolvent, that’s often a Consumer Proposal in Ontario, because it reduces the debt you have to pay. A Consumer Proposal is an agreement with your unsecured creditors to pay a smaller amount than you actually owe rather than see you declare bankruptcy.

#2 Bankruptcy in Ontario

Unsecured creditors typically don’t want their debtors to declare bankruptcy, since they often won’t be able to recoup their loans when your assets are disbursed. It may not be in your best interest to declare bankruptcy either, especially if a Consumer Proposal is an option. A Licensed Insolvency Trustee like David Sklar & Associates can advise you on the best option for your financial circumstances, but unlike bankruptcy, a Consumer Proposal leaves your assets intact.

#3 Credit Counselling

Anyone facing mounting debt should consider debt counselling sooner than later. Debt is an everyday part of life, but there are good ways to use debt and bad ways. Credit counselling will teach you how to manage your debt and stay on top of payments, so that you never face insolvency again.

Talk to a Licensed Insolvency Trustee about taking charge of your finances this year. You have more control over your money than you think.

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