Credit Card Debt Relief
Eliminating Credit Card Debt
Types of Credit Card Debt Relief
Call us to discuss your credit card debt and learn what solution is best for you. Some we recommend and others that we caution our clients about.
- amount of debt is not reduced
- counsellor gives recommendations on debt
- usually non-profit/no fees
- the amount of debt is not reduced
- loans are consolidated with a lower interest rate
- arrange at your own bank or financial institution
- fee based through debt settlement companies
- creditors are asked to take a one time payment on the debt
- no obligation on creditors to agree
- no upfront fee to consumer
- government legislated program
- credit card debt usually reduced by 70% or more
- garnishments and harassing phone calls are stopped
- best choice for debt relief where you have stable income
What is a Consumer Proposal?
In a consumer proposal the trustee arranges for the creditors to accept a lesser amount than is owing on the loan(s).
A new payment plan is arranged and paid usually over 5 years, with one monthly payment.
Credit card debt and unsecured loans are reduced up to 70%.
★★★★★ After years of struggling with credit card debts I was deeper and deeper in the hole, finally I called. I saved $28,000 in credit card debt. Many thanks! Julie Davies, Oshawa.
How Does it Work?
There is no obligation or fee to speak with the trustee. This is an opportunity to discuss your situation and learn what your options are.
The trustee will want to learn about:
- what do you owe
- who do you owe it to
- about your family situation e.g. who is working
- what is your household income, and
- what are your expenses
From that information, the trustee gives you options about how best to reduce your credit card debt.
The trustee would create a proposal for you to review and decide upon.
Where you agree to the trustee’s assessment, the trustee contacts the credit card companies to advise them of your offer, reducing the amount and monthly payment.
Why Creditors Reduce Your Debt
When an insolvency trustee contacts your creditors, the creditors know they have to work with the trustee.
The creditor will normally concede with our help giving you:
- relief from your credit card debt and the total amount owed
- reducing monthly payments and increasing time to pay
- no further interest accumulates
Where for example you owed $20,000, the credit card relief would reduce your balance owing to about $6,000, with monthly payments of $100/month over 5 years or less.
★★★★★We knew our debt was pushing us to a financial crisis. When I broke my foot and could’t work for 3 months everything came to a head. I spoke to them about getting some relief for my credit card debt, and saved $32,000! I’m better off and I’m rebuilding my credit without the mistakes of the past. Thank you, Peter DeGraafi Scarborough.
Surrendering Credit Cards
This includes all credit cards even if they are not in use or do not have a balance owing.
Credit card debt may have contributed to the financial issues you are currently facing.
Most people understand that going without a credit card or having limitations maybe be a good thing for a while.
While in the bankruptcy or proposal and before it has been completed you may apply for any new credit card. Where you are applying for a credit before the completion date you must disclose that you are in the middle of a bankruptcy or proposal.
Each credit card agency will regard the bankruptcy under their own terms and conditions so “shop around” for the best credit card.