Start Getting Your Debts Under Control!
Having Financial Difficulties?
Having financial difficulties? You are not alone! Many Quebecers experience financial difficulties and quickly accumulate debts, which have a negative impact on their credit rating. Our consultants at Refinancement Hypothécaire can help you regain control of your finances and avoid bankruptcy. Call us today to schedule a debt consolidation!
What Is Debt Consolidation?
An excellent alternative to bankruptcy, debt consolidation combines all your debts into one loan. Instead of paying your various creditors (credit cards, lines of credit, banks, etc.), you combine all your debts into one monthly payment to a banking institution! When done properly, consolidation is a simple and effective way to regain control of your debt load.
Combine All Your Debt into One Low-Interest Loan
Taking a debt consolidation loan is a method of reducing both the interest you pay and your monthly payments. A consolidation loan is taken out at a financial institution and the money is used to pay off all your other debts, especially your credit cards (which have a high interest rate). The result is the elimination of all your credit except at one financial institution.
Consolidation sounds simple, but to get the most out of it, you need an expert! The professionals at Refinancement Hypothécaire will be happy to guide and assist you in this process, to get the best interest rates and pay off all your debts as quickly as possible.
What Are the Benefits of Consolidation?
Enjoy a Better Interest Rate
Interest rates on many financial tools are sometimes very high, especially credit cards with an interest rate of 22%. Accumulating a balance on your credit cards can lead you to pay huge interests! Consolidating your debts gathers all your credits under one lower interest rate: it is a great way to stay in control and a solution to your financial difficulties.
Combine All Your Debts into One Payment
It’s easy to get lost when you have several different types of creditors! Every month, we pay our credit card, personal loan, mortgage, car loan and so on, and there is always a risk of forgetting. Paying all your debts with the money from a new loan allows you to transform all your financial obligations into one monthly payment! Your budget will be smoother than ever with the help of an expert advisor.
Keep Your Credit Score Intact
Unlike declaring bankruptcy, a debt consolidation loan will not have a negative impact on your credit score. Because it is a loan like any other, you do not put yourself in a bad financial situation. Don’t forget that declaring bankruptcy gives your file the “R9” mark, which makes it very difficult to access credit for 7 years. Refinancement Hypothécaire can help you avoid this situation with the help of a solid budget!
Why Work with Refinancement Hypothécaire?
Ensuring that the New Loan is Beneficial to You
A debt consolidation brings many benefits to individuals who have difficulty covering all payments, but only if the terms of the loan are beneficial and reasonable. It is important to have a lower interest rate than the combined interest of your other debts, and to reduce the amount of your payments. For such an important decision for your future, we strongly recommend that you speak to financial experts!
Making Sure You Are Able To Cover The Monthly Payments
We are all very willing, but willing and able are not always the same thing, especially when it comes to debt! The first step is to establish a monthly budget for the next few years and calculate your ability to pay and your expenses to avoid unpleasant surprises. Refinancement Hypothécaire can help you to be disciplined, to avoid creating new debts, to regain control of your finances and to keep your good score!
Having Financial Difficulties?
Are your credit card debts and expenses piling up? Contact us to discuss the possibilities of debt consolidation for you and your family! Working with Refinancement Hypothécaire is the best way to get your debts under control without sacrificing your credit score. We work with you to reduce your monthly payments and avoid having to file for bankruptcy.
Don’t let things get worse and defaults pile up before you take the right action and seek advice. Contact Refinancement Hypothécaire today!
What Criteria Must I Meet to Request a Consolidation?
- A debt ratio that is too high;
- Unstable employment or low income;
- A bad payment history;
When you meet with our consultants, we will conduct a complete evaluation of your financial situation to determine the best way to pay off your credit card and restore your financial stability. And if you are turned down by a financial institution, Refinancing Hypothécaire can help you with a private loan!
Learn More About Debt Consolidation
Will Debt Consolidation Affect My Credit?
A debt consolidation is a loan from a banking institution or private lender. Unlike filing for bankruptcy, taking out a new loan will not have a negative impact on your credit score with Equifax or TransUnion. However, it is important that you don’t miss any payments, otherwise each missed payment could lower your credit very quickly!
That’s why meeting with experts is a great first step if you’re thinking about debt consolidation. The consultants at Refinancement Hypothécaire will be happy to discuss your financial situation to find the best solutions for you!
What Interest Rate Should I Aim For When Consolidating?
The goal of a debt consolidation is to help you reduce your monthly payments and regain control of your financial situation. Our counselors are here to help you determine if the interest rate of a debt consolidation loan is beneficial to you and will reduce your monthly payment!
When you add up the interest on all your debts (personal loan, line of credit, credit card, etc.), the monthly payment grows quickly! This can have serious consequences and puts you at risk: missing a payment can have a major impact. We work with you to make sure that the interest rate of the consolidation is lower than all other accumulated debts and will save you money.
What Is the Difference Between Bankruptcy and Debt Consolidation?
Bankruptcy is a way, like debt consolidation, to get out of debt when you are unable to meet your obligations. However, bankruptcy is fundamentally different from consolidation!
In a bankruptcy, you assign your assets to an outside entity, usually a bankruptcy trustee, to liquidate your assets and notify your creditors. This comes with several pros and cons:
- You are completely free of your debts
- You are protected from your creditors
- You lose most of your assets (house, car, etc.) to pay your debts
- Your credit file is affected for at least 6 years
Given the impact that bankruptcy can have on you and your family, it’s important to consider all the other financial recovery options available! The consolidation option, for example, allows you to keep your assets, whether it be your home or your car. The best approach is always to consult professionals for advice. Refinancement Hypothécaire is here to help!
What Is The Difference Between Consolidation And A Consumer Proposal?
A consumer proposal, unlike a consolidation, is a new repayment agreement between you and your creditors. Usually made by a licensed insolvency practitioner (LIPS), this new agreement allows you to reduce the amount of your debts and extend your payments over a longer period of time to give you a chance to pay off your various balances.
There are downsides to a proposal, particularly a negative impact on your credit score during the term of the agreement and for several years afterwards. You also need to be absolutely sure that you can cover all your payments on time, otherwise the proposal may be canceled and creditors may set their own repayment terms.