Dealing with Post-Divorce Obligations through Debt Consolidation Loans
According to The Globe and Mail, about 70,000 divorces occur in Canada each year. Some wealthier couples are able to settle matters behind closed doors, and part ways without much damage to their bank accounts. Unfortunately, for many Canadian couples, divorce brings with it more than just heartaches. Those who can’t compromise or aren’t aware of their options end up in court, and more resources are expended as the emotional battle rages on.
In many of these divorce dramas in Victoria, BC, at the end of the day, much of the funds set aside for college and one’s retirement savings have been used up, leaving both spouses to face a seemingly insurmountable debt, as if the emotional toil weren’t enough. Debts post-divorce are difficult hurdles, what with a broken heart to mend. Relieving yourself of the debt burden, however, could get your life back on track faster. Before you lose hope and file for bankruptcy, CBC.ca suggests considering other alternatives first, such as debt consolidation.
How can debt consolidation help me?
From the name itself, debt consolidation works by consolidating all debts into one loan with a lower interest rate, helping you pay off your obligations at a more reasonable pace while saving you significant money at the same time. Debt consolidation loans are only used to pay unsecured consumer debts, such as credit cards, but not mortgages and auto loans. Additionally, there’s a minimum amount of debt to meet for you to qualify.
Debt consolidation is highly advisable if you owe multiple debts from different creditors, and you have to deal with tedious payment processes every time. Debt consolidation creditors, such as 4Pillars, will evaluate your outstanding debt, existing interest payments, and your monthly repayment capability. If approved, the loan will be used to directly pay your accounts. Your credit rating will not be affected as long as you pay regularly, and restrain yourself from creating any new accounts again.
What if I don’t qualify?
Credit counseling can be helpful, meanwhile, if you don’t qualify for debt consolidation. It will help reduce your monthly payments because your counselor will assist you in making payment arrangements with your creditors. A debt counselor will guide you in creating a detailed budget plan and help you learn some money management skills to reduce the odds of your falling into debt in the future.
Getting burdensome unsecured debts off your back is a significant step to rebuilding your plans for the future after getting divorced. For debt consolidation or counseling, seek advice from a trustworthy and compassionate 4Pillars consultant like Blair Greenwood.
Source: Why Canada needs a split from its messy divorce laws, TheGlobeAndMail.com
Source: 8 myths of bankruptcy, CBC.ca