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Difference between revisions of "You Have Options for Getting Out of Debt"
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You Have Options for Getting Out of Debt (view source)
Revision as of 22:32, 28 April 2015
, 22:32, 28 April 2015→=3. Consolidate your debts
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A debt-management program involves a written agreement between you and the lender, with the help of an agency such as the Credit Counselling Society of BC. Typically, your debts are consolidated, or combined, into one affordable monthly payment so you can repay them in a reasonable time. Creditors usually support people who use debt-management programs by reducing or eliminating interest charges. | A debt-management program involves a written agreement between you and the lender, with the help of an agency such as the Credit Counselling Society of BC. Typically, your debts are consolidated, or combined, into one affordable monthly payment so you can repay them in a reasonable time. Creditors usually support people who use debt-management programs by reducing or eliminating interest charges. | ||
===3. Consolidate your debts== | ===3. Consolidate your debts=== | ||
You may be able to get a consolidation loan from a bank or consumer finance company, which consolidates all your debts. You make just one payment each month. But the finance company will charge you a fee, and the interest may be higher. Also, you may have to use your personal possessions and household items as security for the loan. | You may be able to get a consolidation loan from a bank or consumer finance company, which consolidates all your debts. You make just one payment each month. But the finance company will charge you a fee, and the interest may be higher. Also, you may have to use your personal possessions and household items as security for the loan. | ||
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===7. Take no action at all, in some very limited cases=== | ===7. Take no action at all, in some very limited cases=== | ||
If you have no income or possessions, your creditors may not be able to collect any money from you to repay your debts. Or if your debts are more than six years old, or if you haven’t made any payments or admitted your debts in writing in the last six years, and creditors haven’t taken any legal action, they may have lost the right to sue you. But you should speak to a lawyer before choosing this option. | If you have no income or possessions, your creditors may not be able to collect any money from you to repay your debts. Or if your debts are more than six years old, or if you haven’t made any payments or admitted your debts in writing in the last six years, and creditors haven’t taken any legal action, they may have lost the right to sue you. But you should speak to a lawyer before choosing this option. | ||
==How do you decide what to do?== | ==How do you decide what to do?== | ||
