How Debt Consolidation in Ontario Can Relieve Your Financial Burdens

With the widespread use of credit cards and access to easy loans in our society, debts can easily accumulate. By the time you realize you’ve been living way beyond your means, it may already be too late. Your debts may have become so unmanageable that you need professional help to clear up your many loans.

The pressure to settle large debts can become very stressful—with creditors sending you reminder letters and harassing you with constant phone calls and personal visits. While some people will opt to skip town to hide from their creditors, you can do the prudent thing and call financial experts, such as Paddon + Yorke Inc, to facilitate debt consolidation in Ontario.

Being buried deep in debt does not mean the end of the world. There is always a solution to any problem, even financial ones. With debt consolidation, you can combine all your debts into one single payment program and stop high interest rates, while avoiding late fees and additional charges. Debt consolidation also gives you a chance to improve your credit history. This type of debt consolidation with Paddon + Yorke is called a Consumer Proposal.

Not all debts, though, are counter-productive. Some loans can be used to increase your wealth or improve your prospects. This includes taking out loans to finance property and commercial investments, and borrowing money to finance education. However, since many of these loans are high-interest installment loans, debts can quickly accumulate with mismanagement. This can create a vicious cycle, as you spend more than you earn, and are unable to pay for what you buy on credit.

In worse case scenarios, financial mismanagement could lead you to file for personal bankruptcy in Ontario. It may be the only way for you to unburden yourself from your financial dilemma. Filing for personal bankruptcy can release you from most of your debts, and gives you the chance to start anew.

While many of your assets—such as personal effects, automobiles, and household furniture—may be protected from liquidation, personal bankruptcy does not exempt you from financial obligations like spousal support and child support, among others. If you have incurred a lot of debts, you still have a chance to make financial reparations. Solutions like debt consolidation and filing for personal bankruptcy can help you regain financial freedom.