Unsecured Loans
We can help with Unsecured Loan debt.
Unsecured Loans come in many forms including: Lines of credit, personal loans, credit cards, payday loans, and overdraft, but they all have one thing in common: They are not secured against any specific asset. Unlike mortgages that are secured against a specific house or a vehicle loan that is secured against a specific vehicle, unsecured loans are not related to any specific asset or property.
Interest rates on unsecured loans vary greatly. Some have very reasonable rates as low as 5% or 6% per annum, while others can exceed 40% per annum (40% interest on a $10,000 unsecured loan costs $333.33 per month in interest only).
If you own a home, you may be able to convert your unsecured loans to a secured loan by allowing a bank register a security interest in your home. This usually yields the lowest interest rate possible, and provides the most flexible repayment terms (often interest only). Alternatively, you might speak with your mortgage broker about refinancing your mortgage to “roll” your unsecured debt into your mortgage. Refinancing your mortgage consolidates your debt, and yields the lowest interest rate and payment, but it is important to understand that the repayment of your debt is often being stretched over many years.
If you:
- Don’t own a home, or can’t refinance it
- Owe more than any bank is willing to consolidate
- Can’t qualify for an unsecured consolidation loan
- Can’t afford to repay all of your debt plus interest
then a Consumer Proposal may be your solution.
- Stops Interest – zip, zero, nada – Interest free.
- Consolidates your debt into one single payment
- Protects you from your creditors meaning no more collection calls
- Allows you to repay less than you owe
- Costs nothing to start
- Allows you to keep all of your assets
- Doesn’t require any minimum credit score, and is therefore easy to qualify for
Contact a Licensed Insolvency Trustee
Some of us face personal financial crisis during our lives. We may be able to solve some money problems ourselves, but sometimes we need professional help. The situation may have gradually worsened over time, or happened suddenly because of a job loss, serious illness, divorce, or other major life event.
Whatever the cause, if you’re struggling with debt, you have options. Recognize the danger signals.
You may have a debt problem if:
- You’re relying on debt to balance your monthly budget
- Your loan balances aren’t falling, and might even be rising each month
- You have other debts, that when combined with your unsecured loans, are unmanageable
- Banks, credit card or other collection companies call you, threaten to sue, or have obtained a wage garnishment
Meet with a Licensed Insolvency Trustee to go over all of your options
If you are facing serious financial difficulties, you will want to meet with a Licensed Insolvency Trustee. When you meet with a Licensed Insolvency Trustee, try to assemble as much information about your financial situation as possible including: credit card statements, bank statements, pay stubs, mortgage records, loan documents, etc. A Licensed Insolvency Trustee will explain your options and the advantages and disadvantages of each option. The consultation is free, and it does not cost anything to start working with a Licensed Insolvency Trustee. If you are asked by for money up front it is a red flag; call us instead.
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee is an officer of the court who balances the interests of you and your creditors. In addition to helping you assess your situation, a Licensed Insolvency Trustee will inform and advise you about both the proposal and bankruptcy processes and play an impartial role in ensuring your rights, as well as those of the creditors, are respected.
A Licensed Insolvency Trustee is the only professional authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt, such as a consumer proposal or a bankruptcy.
When you work with a Licensed Insolvency Trustee, you can rest assured that you are dealing with someone who has demonstrated that they have the knowledge, experience and skills to be granted a license from the Office of the Superintendent of Bankruptcy, and is overseen by federal regulators.
A Licensed Insolvency Trustee:
- Reviews your unique personal financial situation and explains all options available to you
- Answers all of your questions
- Assists you in filing the required government forms
- Guides you through the entire insolvency process from beginning to end
- Deals with all of your creditors on your behalf
- Collects payments from you, holds them in trust, and legally distributes them to your creditors as required by law
- Provides two free credit counselling sessions to you
- Reports the completion of your insolvency process to the Federal Government who in turn reports your completion to both Canadian Credit Bureaus
Not sure what to do next?
- Request a Free Consultation
- Give us five (5) minutes on the phone
- Let us give you some free advice, explain your options, and do our best to guide you in the right direction
We don’t sell our services. We simply assist you to understand your options and support you in deciding what path is best for you.