Did you have to take a student loan just after finishing school because the course you wanted to study for your undergraduate degree was way too high for you to afford? Quite often, we come across situations wherein we do not have the requisite amount at hand for an urgent service that is the need of the hour, and hence we need to take a loan. The trouble happens later when the payable amount with interest rises to the extent that we become clueless about how to repay the debt.

If you have also taken a loan earlier to build a house or a credit loan from the bank that you find difficult to repay, this article is for you. You will find the possible debt solutions available in this article that you can utilize per your situation.

If you are stressed about how to repay your debt, we advise that you take the help of an expert who can help you in this situation. Many people are unaware that they can seek help from a credit counselor who can assess the financial situation and offer customized debt solutions per the situation at hand.

Let us find out the debt relief options available to you in Canada.

Top 5 Debt Relief Options Available in Canada

If you are living in Canada, you can avail of the top five debt relief options as given below:

  • Debt Consolidation: If you have several small loans to repay, you can combine such loans and bills into a single, manageable payment. It is automatic, the interest rate for the loan is low, and you can spread the payment for a long time. The overall structure makes it easy for you to afford to repay the debt.
  • Credit Counselling: In credit counseling, a non-profit credit counselor summarizes your debts and prepares a offers a solution called a debt management plan. As per this plan, you can clear your debts in three to five years.
  • Debt Settlement: You can make an informal arrangement with your creditors to repay some of your debt. However, this arrangement is not guaranteed, and fees are required to complete the process. If you already have a sizeable amount of money, you can try to negotiate a settlement with your creditors. However, we will not recommend this arrangement as it does not offer a guarantee.
  • Consumer Proposal: If the debt you incur is less than $250,000, or if you have taken a student loan and have been a student for less than seven years, you can take care of your debt through a consumer proposal. A consumer proposal is a legal settlement between the debtors and creditors that waives off the remaining part of the debt and allows the debtors to rebuild their credit score after they have paid a portion of their debts over a period not exceeding five years.
  • Personal Bankruptcy: Bankruptcy is the last option for repayment of debt. We advise you not to avail of this option until the situation has reached an extreme condition. It is a legal process in Canada meant to offer financial protection to an honest but unfortunate debtor waiving him off from all debt repayments at the end of the bankruptcy term.

Conclusion

You will be able to decide which solution suits you the best after you have read the information provided above. However, note that this is a general guide, and one’s situation may differ from another’s. If you want customized guidance, you can contact professionals who can help you best.