Credit Consolidation in Toronto

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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, call us at 1-844-962-9200 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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I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
Hi there! I am very glad to met this company, especially Jackie Stanley. Thanks for her great work and help me to save my money! Very appreciable!
Mehri Agil
02:43 26 Oct 22
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