What is it?
A Debt Management Program is designed to help you pay back all your debts in a way that is manageable for you.
- Debts are reduced to monthly payments.
- Creditors stop harassing you.
- Interest rates are eliminated or significantly reduced
- Prevents future penalties and fees
- Peace of mind and less stress about money
- Your creditors must agree with you and your Credit Counsellor that this program makes sense for your situation.
- It is noted on your credit report that you are making payments on a debt management plan (which is of course better than not being able to repay your debts at all).
A consumer proposal is a formal arrangement that’s negotiated with creditors that you owe money to. This is another way to handle debt besides filing for bankruptcy.
- Debt is reduced between 60% - 70%.
- Manageable payments spread over 60 months.
- No additional interest charges.
- Collection agencies stop calling you.
- Prevent legal action from creditors.
- Keep all your assets.
- Pay no additional costs beyond your regular monthly payments.
- May take longer to complete than a bankruptcy.
- Only includes unsecured debt such as credit cards, unsecured lines of credit and personal loans.
- It is noted on your credit report for three years after your last payment that you have filed a Consumer Proposal.
Debt Consolidation Loan combines or consolidates your debt into a single loan from a lender. The lender pays off all your debt while gathering the combined sum into a single loan with a set interest rate.
- Single monthly payments.
- A lower interest rate, in most cases.
- Pay off debt faster.
- High interest rates may apply.
- They can lead you further into debt.
- You must have an acceptable credit rating, this ranges by lender.
Credit Builder Program is a secured savings vehicle designed to help you build up your financial savings while also rebuilding your credit score.
- Responsible way to re-build your credit while you save money
- Poor credit or little to no credit history accepted
- Can be approved without a co-signor
- Flexible payment options
- Positive impact on your credit report
- Can help repair the damage done by bankruptcy
- No funds provided up front.
Home Trust Secured Visa card is credit card that is used to build or re-build your credit. The credit card requires a security deposit and your credit limit is set at the amount of deposit.
- Helps you build or re-build your credit, even if you’ve had credit difficulties in the past.
- Virtually everyone is approved.
- No annual fee.
- Applicants who have been discharged from bankruptcy and Consumer Proposal are eligible to apply.
- You will get all the benefits and convenience of carrying a Visa card.
- Make purchases online or over the phone
- Access cash anytime, anywhere
Mortgage Equity Withdrawal is the ability to borrow money against home equity.
- Provide access to large amounts of money.
- Lower interest rates.
- Easier to qualify for than other types of loans.
- Flexible repayment terms.
- Fixed interest rate for the duration of the term.
- Risk of losing your home if you fail to stick to the monthly payment schedule.
- Closing costs could be costly.
Negotiated Collections involves a one-time payment to clear your collection items at a lower rate.
- Collections could be reduced by 30% - 50%.
- One – time payments are manageable.
- Noted on your credit report as settled.
- Collections items only include unsecured debt, including credit cards, medical bills and personal loans.
- Noted on your credit report for seven years after settled.
Personal loan is a fixed amount of money borrowed at a fixed rate and repaid over a fixed amount of time.
- You can spend the loan however you wish.
- The approval rate for a cash loan is much higher than other credit sources.
- Applications are processed quickly.
- They offer a range of re-payment terms, so it is manageable for you.
- Early re-payment with no penalty.
- No hidden fees.
- As you re-pay off the loan, positive reports are recorded on your bureau.
- If the use of the loan is for debt consolidation, you need to remember you’re not paying off debt, you’re just transferring it from one type of debt to another.
- Personal loans may carry much higher interest rates.