03 Apr Predatory Loan Debt: what to do?
Predatory lending is not something new and has been affecting many Canadians across the country for many years (check our previous post on this topic). However, the unprecedented financial situation caused by COVI-19 has made predatory lending easier and many Canadians are falling for it. If you have been a victim of predatory lending, there are a few ways to deal with your debt.
A Credit Counselling Agency is one of the options. If your finances are becoming almost impossible to handle and you don’t know what to do with your debt, the help of a professional may be required. If you choose this option, there’s some homework you need to do: find out how much credit counselling will cost you and if it is worth it; if it will affect your credit; how long it will take you to become debt free; and if they can assist you in managing your finances.
Another option is the debt consolidation loan or program. If you have a lot of high-interest debt, a debt consolidation loan will allow you to pay off all your other debts, so that you will only need to make payments on the one new loan. The idea is to get this new loan with a lower interest rate. This way you can save money on interest charges, while you pay off your debt. The debt consolidation program is ideal for those people who cannot qualify for an affordable debt consolidation. The difference between the loan and this program is that you will work with a trained professional to guide you through the process and deal with creditors on your behalf. This person will help you create a plan, and assess your financial situation.
A consumer proposal or bankruptcy are two other options to help you deal with this situation. For more on consumer proposal and bankruptcy, check our previous blog posts.
Don’t forget we are here to assist you in finding the best financial solution for you.