If you are facing high interest credit card debt, then there are many options available for you to consolidate credit. And two of the options that you should consider are debt consolidation and a consumer proposal in Nanaimo. Both of these solutions will help your situation, but the context of your situation will largely determine which option is best for you. Following are some essential factors to keep in mind when looking to use either of these options:
A consumer proposal is not exactly a bankruptcy, but it is generally tackled through the bankruptcy courts. With a consumer proposal, you do not declare that you can’t pay your debt, but you are declaring that a restructuring of your outstanding debt would better enable you to repay it. You send this proposal to your creditors through a bankruptcy court, and if more than half of your creditors accept your proposal, then all your creditors are bound to accept it. You can manage to save a considerable amount of money every month with a consumer proposal, but your credit score may suffer for months, even after the program is over.
Debt consolidation is another method that you can use to get rid of your debt. In this method, you combine all of your credit card debt under single low monthly loan repayments. Your interest and all other payments that you were making on several accounts will be brought down to a single low interest payment. You will be able to save hundreds of dollars a month, and you will be able to create a new cash flow. Your credit report may take a hit in the beginning, but if you manage to keep up with your loan payments, then your credit rating will improve while you are still in the program. Once the consolidation phase is over, you will notice an immediate improvement in your credit score.
Whether you need help with debt consolidation or a consumer proposal in Nanaimo, it is essential to find the right bankruptcy trustee for your guidance and support. Make sure to do the following if you wish to pick the most reputable bankruptcy trustee in your area:
No matter what type of service provider you are looking for, it is important to check their qualifications and other professional credentials. A qualified bankruptcy trustee in Nanaimo would be highly knowledgeable in the financial laws and regulations of the province that you are living in. They will help you meet all of your requirements, including filing consumer proposal and debt consolidation.
Next, it is important to determine how long the trustee has been active in this line of work. Ideally, you should choose someone who has been involved in the field for more than five years. Not only does an experienced trustee have the best knowledge about the recommended procedures, but they also have better relationships with the financial authorities in the area.
Thus, you should consider all of the above listed aspects when looking for the best bankruptcy trustee who will help you consolidate credit card debt.