Debt Settlement

A debt settlement requires you to build an account with the provider. Debts are negotiated with each creditor and settled one at a time as funds are accumulated in the account. Payments to the creditors are made as lump sums. This procedure continues until all of the debts are settled.

Advantages:

  • Lower monthly payments.
  • Get out of debt within 3 - 5 years.
  • Improves debt-to-income ratio.

Disadvantages:

  • Harassing collection phone calls may continue.
  • Negative effect on credit.
  • Collection remedies, including lawsuits may continue.
  • Need to close all enrolled accounts.
  • High fees may be charged.
  • Limited financial education provided.
  • Need to rebuild your own credit at the end of the program.

Call (888) 213-8678 to speak with one of our trained credit counsellors at Consolidated Credit Counseling Services of Canada, Inc. for assistance in this area.

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Having issues with your unsecured debt?

Click Here to find out your options to get back on track by filling out a budget analysis or by calling (888) 213-8678 and speaking to a Trained Credit Counsellor.

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