Credit Consolidation in Toronto

Consolidating Credit in Toronto

More often called debt consolidation – credit consolidation involves combining credit related debts into one loan – with the net result of a lower interest rate and lower monthly payments.

There are 4 main credit consolidation options in Toronto. Which one you choose, should be based on your financial situation.

Credit Card Consolidation to One Credit Card

This type of consolidation involves moving the credit card balances from higher interest cards to a lower interest card. This is done to minimize the amount of interest being charged on credit cards.

Although this might solve a short term issue – it can be a disaster in the making, as people often then max out their higher interest cards again – and discover the ‘low interest’ card interest rate was only a limited time offer.

Credit Consolidation Loans

These loans are usually obtained through a financial organization such as a bank or a credit union. Their goal is to combine all the outstanding credit debt into one loan that will enable people to make lower monthly payments, at reduced interest rates.

For those who then stop using credit – this can be an excellent way out of debt – even though this type of loan may require using the debtor’s home as security.

Unfortunately, credit consolidation loans can be the beginning of a debt spiral – which occurs when the borrowers begin the all-too-common practice of continuing to max out credit cards and then taking out more consolidation loans.

Debt Management Programs

These programs are offered by licenced, not-for-profit credit counsellors and involve trying to negotiate a legally-non-binding agreement with the unsecured creditors to see if they will lower their interest rates. In addition, the debtors are taught how to budget and stay out of debt.

This type of program is excellent for the person who is not yet overcome by debt, is able to make the required monthly payments and is able to stop using credit. Unfortunately, not all creditors may choose to participate.

Consumer Proposals

Backed with the full authority of federal government legislation – consumer proposals are an excellent option for people who are insolvent (lacking the resources to repay their debts in a reasonable time), and have a secure enough income to consistently make manageable monthly payments towards their unsecured debt.

In Ontario, only bankruptcy trustees who are licensed by the Office of the Superintendent of Bankruptcy, such as David Sklar & Associates – are permitted to file and administer consumer proposals.

With the aid of their trustee and through a consumer proposal, a debtor offers to repay their eligible, unsecured creditors a portion of their outstanding debt over a period of up to 5 years. In exchange for this repayment – the unsecured creditors stop all interest charges, and stop all collection efforts.

Once the proposal is accepted by a majority of the creditors, it becomes legally-binding on all of the unsecured creditors covered in the proposal, and the debtor will then begin making monthly payments to the trustee for disbursal to their unsecured creditors.

In addition to honouring all the terms of the proposal, the debtor will attend credit counselling sessions to learn the skills to stay out of debt and build a better financial future.

Find Out More

If you are facing overwhelming debt in the Toronto area, you are welcome to call David Sklar & Associates, Trustee in Bankruptcy at 416-498-9200 to book a free consultation. We will review your finances with you and discuss all of your debt/credit consolidation options – in a professional and supportive environment.

 

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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