Debt Consolidation for Young Canadians: A Fair Challenge to Take

Young adult life has its own twists and turns to take in the path to total maturity. In the course of it though, those circumstances may involve issues with finances, especially when the youth want to be more “in” with the latest trends. When the arrears pile up faster than scoring during a power play in hockey, you can ask help from people familiar with debt consolidation, such as 4Pillars’ Blair Greenwood in Victoria.

Assessment

The key to settling all your debts is to determine how much debt you currently have and which creditor you accrued them from. A post in the Young Adult Money blog recommends collecting all correspondences, such as your recent credit card and loan statements. Itemising them in order of amount and interest percentage will help give you a bigger scope of the problem.

Your debt consultant will aid you in consolidating your debts through a consumer proposal. The plan is to combine all debts into a single account you can pay off over a given period of time, but much sacrifice is needed on your end. You cannot take out any fresh loans and must eliminate all unnecessary spending.

The financial straits you’re in may be reflective of your current pay grades. The Globe and Mail cited data from 2010 stating that the median incomes of people between 20 and 24 years old were roughly $13,800, whereas that would have been $23,400 for similarly aged people back in the 1970s.

Student Loans

Debts among young adult Canadians often include student loans coursed through either the federal or provincial governments, or a private lender. The notices for repayment usually come six months after graduation, with the interest kicking in as well. Tempering this with a debt consolidation programme will depend on the associated laws of the province; B.C. allows separate repayments of each of the above three student loan types.

Some people may claim that the early years of adulthood will define much of the rest of their lives. That doesn’t have to include being saddled with debt. The tutelage of professionals in debt consolidation services can give you a fighting chance to eliminate your debts and prepare your future financial security.

Sources:

When is the Right Time to Consolidate Debt?, Young Adult Money

Young adults really do have it tougher, The Globe and Mail