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 had a great experience with Jerry Janiec and his team at David Sklar and associates. Within a week I was already accepted and filed for bankruptcy and in a few months I will be debt free! It feels like a lot of stress is off my shoulders. Jerry and his team are very friendly, helped me along the way and was there to explain every detail of the process with me. He gave my his card and is just an email/call away if I need any help with paperwork and completing my duties. He is a very patient and kind professional and I am so glad I chose him and this company to help me fix my financial problems. If you need help with a consumer proposal or bankruptcy (like I did) I highly recommend Jerry Janiec and David Sklar and associates!
Lisa Gomez
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Very professional and caring. Cori, explain everything and listened to my situation. If I didn't understand, she will explain it again. I'm glad that I went to David Sklar and Associates for my financial difficulties.
Richard Hong
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Great experience with this company . Especially Jennifer N. communication was amazing and really helped out my situation. Highly recommended her and David S .
Jay Mil
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Everything went well. I will update in 5 years
Trisha C
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My experience with Cori was phenomenal. Cori took the time to explain the process thoroughly, listened to my concerns and reassured me. Cori has exceptional people skills and cares about the people she is helping. The experience throughout was professional, kind, warming and inviting.
Angie
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A huge thank you to Jackie S and to the David Sklar and Associates team. Steps made easy , Jackie S has been there during the entire process , whether it was through emails or phone calls . I felt acknowledged and respected . I’d recommend David Sklar and Associate at a heart beat !! Cheers , Dennis
Dennis Armstrong
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Very happy to talk with grace and she explained my options.Grace is very knowledgeable,friendly,and helpful. She made feel very comfortable,with her help I am on the road to be debt free. She relieved so much stress. I highly recommend them.
Kelley Roberts
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David Sklar & associates is the place to be if you’re looking for help on your debt consolidation. Kudos on their staff Miss Grace Cuffaro who were very patient guiding me on complying all required documents.
Nhie GU
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Reduced my stress and gave me a second life. Sincere heartfelt thanks to the team.
Selvaraj Dhanagopal
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I am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
Carolina Marroquin
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