Canadian Debt Settlement – Is It Right For You?
Are you over your head in debt? Thinking about using a debt settlement company service?
Debt settlement is relatively new in Canada. It is a bankruptcy alternative for people who have over serious credit problems.
DEBT SETTLEMENT DESCRIBED
Debt settlement is when you or a company that represents you approaches your creditors and tries to negotiate a percentage off your current principal and interest owing.
Example – You owe the following amounts:
Credit Card #1: $ 2,500
Credit Card #2: $ 5,000
Credit Card #3: $12,500
Car #1 loan: $22,900
Line of credit: $14,000
Total Owing: $56,900
THE PROBLEM STARTS – you just got sick and can’t work and your spouse got moved to part time hours.
All of a sudden the debt that was well within your means is now out of reach payment wise.
This type of scenario causes a great deal of stress on the husband and wife and their children. It’s enough stress to cause havoc with your health. This type of scenario is becoming more common place in Canada.
In this example, you would approach your creditors and tell them that you’re not able to pay your bills, and would like to settle your debts at 50
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