All about Debt Restructuring
If you are frequently late in paying your bills or have received calls from a collection agency, you are definitely having problems with your debt. One option to get out of your financial problems is by debt restructuring.
What is debt restructuring
Debt restructuring is a process wherein the borrower who is facing problems with money is allowed to renegotiate his or her delinquent debts. This can help the borrower in improving his or her credit rating. Debt restructuring can result in debt reduction and extension of payment terms. This is less expensive and preferable over filing for bankruptcy.
How do I start
If you have a sincere desire to pay off all your debts, you can start looking for a credit counseling agency. There are so many credit counseling agencies available in Canada. These agencies can help you in assessing your financial situation, consolidating all your debts, arranging your debt restructuring plan, and requesting for discounted settlements.
In the beginning, the credit counseling agency will conduct a free assessment of your monthly expenses, assets, net income, and debt. After which, a personalized repayment program will be created for you. This will be presented to your creditors for approval. The creditors will return the signed approval forms to the credit counseling agency. Once everything is in place, you will be making one monthly deposit to the credit counseling agency, which will be distributed to the creditors.
If your financial situation gets worse, you must inform the credit collection agency at once. The credit collection agency can help you further by creating a new plan, or putting your program on hold and advising your creditors about it. Remember that only the financial assessment is free. Credit collection agencies charge fees for their other services regarding debt restructuring.
Your Credit Score
Your Credit Score is the single most important factor any Creditor will look at when deciding on whether or not to provide you with anything from a small personal loan on up to a Mortgage.
Video Tips
Steve Ely, President of Equifax Personal Solutions gives a Frank and Honest assesment of what you can do to Protect and Improve your Credit Score
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