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Solutions for Bad Credit

Solutions for Bad Credit

It can feel overwhelming to find yourself in debt, with your credit going from bruised to damaged. It may seem impossible to fulfill your desire to make a significant investment, such as purchasing a home. Even though it can be challenging to get your finances in order and restore your credit on your own, there are several solutions available to you.

Credit Counselling Services

Consumers have access to a wide range of credit services, both commercial and non-profit, so it’s critical to conduct due diligence before selecting a support provider. Some things to think about are:

  • whether the organization charges you any fees.
  • whether the programs and services match your situation.
  • Your level of comfort dealing with the staff, as working through credit issues can be an intense and personal experience.

Depending on the amount of your debt, you may be eligible for a voluntary management program guided by a counselor. For example, the Credit Counselling Society offers a program that will help you improve your credit score and your money management skills while paying 100% of the principal owing on your debt.

Consumer Proposal

A consumer proposal is a lesser-known way for Canadians to manage and repay debt. This trustee-led method allows you to keep part of your assets while removing them from your credit report three years after you have completed your payments. It is a legal arrangement that allows you to be flexible if your circumstances change; for example, if you can make greater payments due to a new job, you can pay off your proposal at any moment throughout the term.

If you live in Victoria, B.C., Fresh Start BC can help you learn more about your financial options while dealing with a trustee.

Bankruptcy

This is perhaps the scariest concept, and it is the first thing that comes to mind when you think about bad credit. Hopefully, you’ve understood there are alternative choices to consider before deciding to file for bankruptcy. Again, this is a legally enforceable arrangement to repay as much of your debt as possible, overseen by a licensed trustee. Bankruptcy remains on your credit report for six years after your debts are discharged.

Final Thoughts
Whatever your credit situation is, it is critical to be an informed consumer. A yearly credit report check should be included in your financial plan; inaccuracies or omissions do occur from time to time, and it is your responsibility to clear them and ensure your report is accurate. Budgeting and saving should be part of your plan if you are rebuilding your credit; in fact, you can work on these while completing one of the previously described procedures.

If you’re concerned about your debt and want advice on how to improve your credit in order to buy a home, contact Auxilium Mortgage today for a free consultation with one of our brokers: call Toll-Free 1-855-590-6520 or stop by #16-Unit 211-2840 Peatt Road during regular business hours, Monday through Friday 8:30 a.m. – 5:00 p.m. We can also set up an evening or weekend appointment to work with you.

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