In Canada, it is a bit of a challenge to keep your finances up if you are burdened with debts from multiple sources. With time, you go on taking loans one after another without planning how you are going to repay them. And when the repayment time comes, it broke you financially. Missing out on one installment will lead you to penalties, increase the interest rate, and add-on financial load. One of the ways out of the situation is Debt Consolidation. It gives a chance to reorganize and manage your existing debts and become debt-free.

Meaning of Debt Consolidation:

When two or more debts are combined together and a new loan is taken at suitable conditions such as loan tenure, low-interest rate, etc. to repay debt amount is known as Debt Consolidation in Brampton. It helps to reduce the stress of remembering various installment dates and load of interest payments. Debt consolidation financial advisors will be time saving and safe option. There are benefits as well as risks of getting debt consolidation in Brampton.

Benefits of debt consolidation in Brampton are:

• Give you a chance of planning and repay your debts more systematically
• You can choose a more affordable option like a loan with a lower interest rate
• Free you from multiple interest payments
• Saves money on interest rates
• You can choose the time period of the loan
• It helps you in better management of your finances
• Debt Relief
• Less mental and financial stress

Risks of Debt Consolidation in Brampton:

• Old debt will be repaid but you still have to pay new loan installments
• Cannot save you from working hard
• Cannot get tempted with new debts.
• If not worked on improving your cash flow, it will be difficult to pay the new debt consolidation loan.
• If you gave cosigner then in case of non-payment the burden of remaining payment falls on the cosigner
• There is a possibility of losing the mortgaged property to a bank or lender if you fail to repay the new loan.
• Statistics show that in the last few years banks in Canada are not giving unsecured loans as it’s very risky.

Eligibility Criteria:

1. Good repayment history and credit score
2. You must earn a regular income to ensure payment of monthly installments.
3. Your monthly expenses must be manageable
4. Reduce as much debt as possible and improve your credit score before applying for the consolidation loan.

If you qualify, the debt consolidation loan option is best. Otherwise, you should consider another option like a consumer proposal or a last resort bankruptcy.

Types of Debt Consolidation Options in Brampton

1. Debt Consolidation Loan: It’s a large loan that allows you to pay all your existing debts in one go.
2. Mortgage Loan: You can take a debt consolidation loan against your property. The collateral will give negotiating position over a bank or private lenders and you can convince them in giving you more money at lower interest rates.
3. Line of Credit/Overdraft: Option that can be used if you have a good credit score and a regular income. It is difficult to qualify though.
4. Credit Card: Paying debt using a credit card but is not suggested as it can increase your debt significantly in case you miss your installment.
5. Debt Management Programs: Non-profit credit counseling agency will act as a mediator between you and your creditors.
6. Debt Settlement: It is done by giving part of your debt to the creditor as a full and final payment. It works only if the major part of the debt is paid.
7. Consumer Proposal: It is a formal agreement between you and creditors that will help in saving your assets from liquidation.
8. Bankruptcy: When you announce yourself as bankrupt under Bankruptcy and Insolvency you will be exempted from any legal action, debt recovery, or seizing of personal assets.

Debt consolidation financial advisors give you available debt consolidation options in Brampton and guide you in opting for the most suitable consolidation option. They explain the advantages and disadvantages of debt consolidation and help you in making a more efficient and less risky strategy to pay off your debts more efficiently. Avon Financial is a renowned and awarded mortgage broker and debt consolidation financial advisor in Brampton, Ontario. They have a team of experts who will give the right credit counseling on debt relief at the time you need it. Credit counseling means analyzing your finances, resolving debt issues, and enhancing your credit score. It can be daunting to come out of your debt cycle, Avon Financial tries making tasks easier for their clients. They handle clients from diversified fields and help in restructuring financial plans by optimize available financial resources more efficiently. With the help of a debt consolidation program, credit counselors at Avon Financial will design personalized strategies for making you debt-free.