just need help!

January 4th, 2011 by Questions

Hi, i\’m about 25,000.00 in debt with my credit cards but I really don\’t want to go to bankrupcy. I just need some help in consolidating my credit cards amounts and have one payment per month. Bankrupcy means somebody else pays for my mistakes and I don\’t want that. What can I do and where can I go. Awaiting your opinion. Thank you.

Posted from: Ontario


One Response to “just need help!”

, A licensed trustee said:

The most common alternatives to bankruptcy are either to file a consumer proposal or a debt management program.

A consumer proposal is a legal procedure wehereby you offer to repay a portion of your debts (currently the minimum seems to be around 1/3 of what you owe). Your creditors get to vote for or against your offer. Most trustees won’t let you file a consumer proposal that has no chance of being accepted.

A debt management program is a voluntary procedure offered by registered not-for-profits whereby you repay your debt sin full over 4 or 5 years with no new interest charges. Your creditors get to vote for or against this dela too, but since you are repaying 100% of the debt it is almost always accepted.

A word of warning: there are many companies calling themselves credit counsellors and/or debt consultants. Most charge you a fee and then refer you to a trustee to filke a consumer proposal. BEFORE you sign anything or pay someone a fee, find out if they are simply refering you to someone else to do the work. If they are then why would you want to pay them a fee…

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