In Ontario you have a lot of options when it comes to debt relief programs. Consumer proposalsdebt consolidation loansbankruptcy and debt settlement are all terms you’ve probably heard, and it is essential that you understand them before you begin a program to reduce or eliminate your debt. Here is some basic information on Ontario debt consolidation loans.

After you have not paid your debts for several months, your creditors will begin the collections process to recover the money they are owed.

An Ontario debt consolidation program will help you get your finances under control. Residents will see the average interest rate on their debt reduced in most cases, and by making your single monthly payment on time, you’ll even see your credit score improve. This single payment makes it easier to repay creditors. However, since your principal is not reduced, you won’t be accelerating the pay-off process by that much.

Debt settlement is similar, in that you end up with a single monthly payment, but if you’re having problems making your payment, the debt settlement program will work to negotiate with creditors to reduce how much you owe. Doing this will mean you’ll be out of debt fasterthan with a debt consolidation loan, but it WILL negatively affect your credit more significantly.

Find out more about the benefits of debt consolidation and other debt relief solutions by filling out this Canadian debt relief form.

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