Credit Card Debt Relief
You can reduce your credit card debt by up to 80% in Ontario
Are you struggling to pay down the balance on your credit card debt? If so, we can help.
Why so many people in Ontario need credit card debt relief
Accumulating credit card debt is easy – but getting out of it is a different story altogether. Your balance owed starts off small but, over time, begins growing at an alarming rate. And suddenly, you find yourself struggling to keep up with your monthly payments. If only it were as easy to eliminate credit card debt as it is to hit your credit limit! All hope is not lost there are several credit card debt relief option in Ontario available to you. We can help you find the right solution.
Why is it so easy to get overwhelmed by credit card debt? There are several reasons:
- Mindless spending. Since you’re not using your own money when charging purchases to a credit card, you’re more likely to overspend.
- Generous credit limits. Credit card providers offer credit limits that encourage you to spend beyond your means.
- Minimum payments. To keep your card in good standing, you only need to pay a minimum amount each month, which allows interest to pile up quickly.
- High-interest rates. The average credit card interest rate is 20%. As a result, your balance can balloon to a massive size in a short period. And should you make late payments consistently, your card issuer can increase that rate to 30% or more!
Credit card debt relief is possible in Ontario
We sincerely understand many people never meant for their credit card spending to spiral out of control. Perhaps a job loss, divorce, medical issue, or another adverse life event drained your income and savings. As a result, you had to rely on your credit card to get by. It bailed you out when you were low on cash – but now it’s causing you financial hardship.
As dire as your situation may be, credit card debt relief is possible in Ontario. Our federally regulated, Licensed Insolvency Trustees have helped thousands of people resolve their debt issues and regain confidence in their finances. We can help you settle or eliminate your credit card debt and give you a fresh start to rebuild your financial house.
Here are some credit card debt relief options to explore:
Consolidating your credit card debt won’t decrease your outstanding balance. But it can be an excellent way to combine all your accounts into one payment plan and reduce your interest costs.
There are two ways to consolidate your credit card debt in Canada:
Debt consolidation loan
A debt consolidation loan allows you to merge your existing credit card balances into a single loan. Typically, you consolidate credit card debt using a personal loan. However, you can also apply for a balance transfer credit card or home equity loan.
The benefit is that you’ll be responsible for making only one monthly payment at a lower interest rate than the one your credit card issuer charges.
However, it’s crucial to remember that you’re still obligated to repay 100% of your debt consolidation loan balance. If you fail to do so, you risk losing any assets you’ve pledged as collateral, such as the cash in your savings account or your home.
Debt management plan
Under a debt management plan, you combine your existing credit card balances and repay your debt monthly through a single payment. A non-profit credit counsellor arranges a debt management plan on your behalf. Usually, they can secure a lower interest rate for you, reducing your overall debt burden and enabling you to pay off your balance faster.
However, much like a debt consolidation loan, no portion of your credit card debt is forgiven. You’re responsible for paying the balance in full, typically over three to five years.
In addition, your credit counsellor holds no legal authority over your creditors; the repayment plan isn’t legally binding. As a result, your creditors can still pursue you for payment and send your account to a collection agency.
Settling your credit card debt with a consumer proposal – the superior version of a debt consolidation loan
A consumer proposal allows you to negotiate new payment terms with your creditors. You’ll have the opportunity to slash your outstanding balance by up to 80%, leaving you with a much lighter debt load to pay.
Unlike debt consolidation loans, a consumer proposal safeguards your assets from repossession. And it absolves you of any future interest charges and penalties, too. These features make a consumer proposal a far more cost-effective and less distressing form of credit card debt settlement. The main drawback is that a consumer proposal remains on your credit report for three years after you’ve paid off the debts included in the proposal.
A Licensed Insolvency Trustee is the only professional in Canada with the knowledge, expertise, and authority to guide you through a consumer proposal
Credit Card debt relief with a Consumer Proposal
We’ve helped thousands of Canadians reduce their credit card debt with a Consumer Proposal.
Take a moment to learn about the benefits of consolidating your debt with a Consumer Proposal. Our team of Licensed Insolvency Trustees will help you every step of the way.
Advantages of a Consumer Proposal
- Federally regulated by the Canadian government to help citizens avoid claiming bankruptcy. Learn more.
- Collection calls will stop immediately.
- You will pay back less than you owe. Often 70-80% less.
- Monthly payments are based on what you can afford.
- Payments can be spread over a 5 years.
- Payments are interest-free and without penalty.
- David Sklar’s federally regulated fees are calculated into your monthly payments, so there are no additional fees to worry about
Find out how much you can save with our
Consumer Proposal Debt Calculator
Use the slider below to tell us how much you owe and we will show you how much you can save!
*Do Not Include Mortgage or Car Loan Debt.
With a consumer proposal at 0% interest, you will only have to pay back:
$3,480/$58 per month
*This calculator is for demonstration purposes only. Your results may vary based on your unique financial situation.
Eliminate your credit card debt through bankruptcy - but only as a last resort
The most extreme method for eliminating credit card debt is filing for bankruptcy. It’s the option of last resort, where negotiating a repayment plan with your creditors is impossible.
Unlike a consumer proposal, bankruptcy will completely wipe out your credit card debt and any other unsecured debt you wish to include. Once you’re discharged from bankruptcy (which can occur in less than a year), you’ll have the freedom to start fresh and rebuild your credit.
Unfortunately, you’ll have to surrender your assets (with some exceptions) during bankruptcy proceedings. And bankruptcy remains on your credit report for six to seven years.
As with a consumer proposal, a Licensed Insolvency Trustee is the only professional in Canada who can administer bankruptcy on your behalf.
How can we help with your credit card debt settlement?
We can wholeheartedly recommend a consumer proposal to solve your credit card debt woes. A consumer proposal is a federally regulated program designed for individuals looking to get their debt under control while avoiding bankruptcy. It’s the safest, cheapest, and most effective way to achieve credit card debt relief.
Our team of Licensed Insolvency Trustees can negotiate a legally binding settlement with your creditors. Your existing credit card debt will merge into a single payment plan free of interest and penalties. Once your creditors agree to the proposal, they must adhere to its terms from that point forward.
Are you overwhelmed by credit card debt and struggling to escape the minimum payment cycle? If so, contact us for a free, no-obligation consultation. We’ll explain all your debt relief options and help you choose the one best for you.
Credit card settlement with a consumer proposal
Take a moment to learn about the benefits of consolidating your debt with a consumer proposal. Our team of Licensed Insolvency Trustees will guide you every step of the way.
Are you overwhelmed by credit card debt and struggling to escape the minimum payment cycle? If so, contact us for a free, no-obligation consultation. We’ll explain all your debt relief options and help you choose the one best for you.
Advice on Credit Card Debt Relief
Getting into debt is easy. Getting out is a different story.
But it's still possible!
Did you know there is a Debt Program federally regulated by the Canadian Government, designed to help citizens avoid claiming bankruptcy? This amazing program can only be administered by a Licensed Insolvency Trustee (LIT).
If you’re struggling to make your payments every month and creditors won’t stop calling, we can help.
What our clients are saying.
We are David Sklar
Our team of Licensed Insolvency Trustees in Ontario can help you get out of debt and in control of your own financial future. We’ve helped thousands of people and we can help you too.
We know this is stressful, but you're not alone.
It’s going to be okay.
Book your free consultation today. We’ll do the rest.
