Are You Having Financial Difficulties?
Are you in a difficult financial situation? Don’t worry, you’re not alone. Many Quebec residents experience financial difficulties, which often leads to an accumulation of debt. High debt levels, especially if payments are missed, can impact credit scores.
Refinancement Hypothécaire can help you get your finances back under control. Avoid declaring bankruptcy by calling us to plan a debt consolidation!
What Is Debt Consolidation?
Credit and debt consolidation is the act of combining all of an individual’s debts under one loan. It is an option to consider before filing for bankruptcy. The debts are combined into one single amount and, instead of paying your various creditors (credit cards, lines of credit, banks, etc.), you pay a single monthly fee (a reduced monthly payment) to a banking institution.
Debt consolidation is an effective way to get your debt under control, but only if it is done right! By working with professionals, you will no longer have to worry about all the different creditors (bank creditors, company creditors, bondholders…).
Consolidate All Your Debt into One Low-Interest Loan
Taking out a debt consolidation loan reduces both the interest you pay and your monthly payments. With the help of a loan from a financial institution, the consolidation process is carried out and your debts are paid off, particularly your credit cards (which have a high interest rate).
Consolidation seems like a simple process, but to get the most out of it, it has to be done right. In order to do so, you need an expert! Trust professionals at Refinancement Hypothécaire who will be happy to guide and assist you in this process. We will make sure to get you the best interest rates that will help you pay off all your debts as quickly as possible.
What Are the Benefits of Consolidation?
Benefit from a Better Interest Rate
Interest rates on many financial tools are very high, especially credit cards with an interest rate of 22%. It is not uncommon to pay huge interest rates by accumulating credit card balances. Consolidating your debt and paying a lower interest rate allows you to control your payments and find a solution to your financial difficulties.
Combine All Your Debts into One Payment
It’s easy to get lost when you have several different creditors! Many find themselves with large payments at the end of the month when their debts are too high. Every month we pay off our credit card, personal loan, mortgage, car loan and many others, a slip-up can happen easily. With debt consolidation, you have the chance to pay off all your debts and combine all your financial obligations into one monthly payment! With only one monthly payment, your budget will be easier to manage than ever. Get the best recommendations with an expert from Refinancement Hypothécaire.
Restore a Good Credit Score and Keep Your Credit Score Intact
By declaring bankruptcy, your credit score will suffer, and this will follow you for years. Debt consolidation allows you to keep your credit rating intact, you will even be able to start rebuilding it. Since this is just another loan, you don’t put yourself in a bad financial situation.
Declaring bankruptcy gives your credit history a grade of ‘R9’ and makes it very difficult, if not impossible, to access credit for 7 years. Refinancement Hypothécaire can help you avoid this situation with the help of a solid budget!
Why Work with Refinancement Hypothécaire?
Get a New Loan that Works for You
Debt consolidation can be very beneficial to individuals who are having trouble covering all their payments, but beware! This is only the case when the terms of the loan are beneficial and reasonable!
It is important to have a lower interest rate than the combined interest of your other debts, and to reduce the amount of your payments. Since there are so many regulations, for such an important decision for the comfort of your future, we recommend that you talk to financial experts to get you on the right track!
Make Sure You Are Able To Cover Monthly Payments Without Concern
We are all filled with good will, but will and power are not the same thing, especially when it comes to debts! When you contact us for a consultation, the first step is to establish a monthly budget for the next few years. The budget must be taken into consideration and include your ability to pay and your expenses to avoid unpleasant surprises.
Refinancement Hypothécaire is by your side during the repayment process to help you regain control of your debts and build a good credit score for your future projects.
Are You Experiencing Financial Difficulties?
Did you realize that your credit card debts and expenses are piling up? Contact us to discuss how a debt consolidation can help you and your family! Debt consolidation is a great way to get your debt under control without sacrificing your credit score. Refinancement Hypothécaire will work with you to reduce your monthly payments and help you avoid having to declare bankruptcy.
Don’t let the situation worsen and non-payments pile up before you take action and seek advice. Contact Refinancement Hypothécaire today!
Am I Eligible for a Consolidation?
The majority of debt consolidation loans are made with financial institutions. Before approving an application, banks assess applicants according to certain criteria. Here are some reasons why a bank may deny your application:
- A debt ratio that is too high;
- Unstable employment or low income;
- A poor payment history;
When you meet with our consultants, we will do a complete evaluation of your financial situation to determine the best way to pay off your credit card and get you back on track financially. In the event that you are turned down by a financial institution, Refinancement Hypothécaire can help you with a loan or private creditors!
Learn More About Debt Consolidation
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Does Debt Consolidation Impact My Credit?
A debt consolidation is a loan from a banking institution or private lender. Unlike filing for bankruptcy, taking out a new loan will not have a negative impact on your credit score. However, it is important that you don’t miss any payments, otherwise each missed payment could lower your credit very quickly!
That’s why meeting with experts is a great first step if you’re thinking about debt consolidation. Experts at Refinancement Hypothécaire will be happy to discuss your financial situation to find the best solutions for you!
What Interest Rate Should I Aim For in a Consolidation?
The goal of a debt consolidation is to help you reduce your monthly payments and regain control of your financial situation. Our advisors are here to help you determine if the interest rate of a debt consolidation loan is right for you and will reduce your monthly payment!
When you add up interest on all your debts (personal loan, line of credit, credit card, etc.), the monthly payment quickly grows! This can have serious consequences and puts you at risk: missing a payment can have a major impact. We make sure that the interest rate of the consolidation is lower than all other accumulated debts and will save you money.
What Is the Difference Between Bankruptcy and Debt Consolidation?
Bankruptcy is a way, like debt consolidation, to get out of debt when you are unable to pay your debts. However, bankruptcy is fundamentally different from consolidation!
When you file for bankruptcy, you assign your assets to an outside entity, usually a bankruptcy trustee, to liquidate your assets and notify your creditors. This comes with several pros and cons:
- You are freed from your debts entirely;
- You are protected from your creditors;
- You lose most of your assets (house, car, etc.) to pay your debts;
- Your credit report is affected for at least 6 years;
Given the impact that bankruptcy can have on you and your family, it’s important to consider all the other financial recovery options available! Consolidation, for example, allows you to keep your assets, whether it be your home or your car. The best approach is always to seek professional advice. Refinancement Hypothécaire is here to help you!