Debt Relief Solutions in Scarborough, ON

Debt.ca is Canada’s trusted source for debt relief

At Debt.ca, we understand that people, including those in Scarborough, sometimes find themselves surrounded by debt for many reasons including job loss, reduced income, medical expenses, or even just the rising costs of raising a family. More and more residents of Scarborough are relying on debt just to make ends meet. In fact, consumer debt in Canada reached $2.4 trillion. This is an increase of 20.6% in just 4 years!

When faced with a mountain of consumer debt, it is quite easy to become overwhelmed and believe that you will never be able to pay off your creditors. The high interest rates associated with consumer debts, late fees, and penalties pile up quickly. For those who are behind on their payments, it can seem to conspire against your attempts to become debt-free. That is why we want to help all Canadians better understand their debt relief options and save the most money while they get out from under their unsecured loans.

Credit card monthly payments in Toronto, including Scarborough, reached a whopping $394.4 million at the end of 2023. If you’re one of the people in Scarborough trying to keep up with these payments, Debt.ca can help! Let us show you that you can live a life free of overdue bills. There are more options than you probably realize. Simply put, if you are paying out more money every month than you have coming in, we can get you to a professional who can help.

CREDIT COUNSELLING HELP IN SCARBOROUGH, ON

Many people in Toronto, including Scarborough, are struggling to keep their debt under control. This is particularly true for high-interest debt like credit card debt. The good news is there is help. Credit Counselling is particularly effective at helping to get high-interest debt under control. Credit Counsellors share their expertise on what debt-relief solutions are available, make recommendations of which one would be best for your specific situation, and then set you up on the path to debt-free living.

These services are needed now more than ever. Torontonian credit card debt increased by 15.5% between 2022 and 2023 alone. Much of this debt is carried by those living in Scarborough and, when you understand the economy there it’s easy to understand the reason why. Some parts of Scarborough face unemployment rates of up to 15-16%. Around 30% of people in such areas live below the Low Income Cut Off (LICO).

If you live in Scarborough and cannot pay your bills on time or are seeing your overall debt levels increase month after month, then credit counselling may be the answer you are looking for. A quality Scarborough credit counselling program can help you get out from under your debt and shore up your financial future at the same time. To learn more contact our expert Credit Counsellors.

WOULD A DMP WORK FOR RESIDENTS OF SCARBOROUGH, ON?

As of Q4 2023, Torontonians, including those in Scarborough, owe just under $23 billion in credit card debt alone. That’s an increase of 15% in a single year. Many people struggling with debt, including those in Scarborough, turn to Debt Management Programs (DMP) to get back on their feet financially.

Debt management plans lower your debt obligations and simplify your finances. The debt repayment process is simplified because you only make one payment to your administrator each month. They then distribute the funds to your creditors. Your debt is lowered because your interest rate is cut down drastically, often even to zero.

If you’re one of the many residents of Scarborough struggling with debt, call us to learn more about how our DMP can help!

DEBT CONSOLIDATION OPTIONS IN SCARBOROUGH, ON

As a citizen living in Scarborough, it’s not uncommon to fall on hard times. If you’re experiencing difficulty keeping up with your financial obligations, debt consolidation may be your best option to get back on track. As such, consolidating your unsecured debts can make managing your payments easier. 

For example, multiple credit card debts and other liabilities combine into a single monthly payment. This makes it easier to prepare for and remember when just one due date is approaching every month. In addition, that single payment can be more manageable, with a lower interest rate than the existing rates on your different debts. Many Canadians are opting for a line of credit (LOC) to consolidate their debts. Scarborough, a part of Toronto, is following the same trend. In Q4 2023, the outstanding balance for LOCs in Toronto reached $9.56 billion, up from $8.52 billion in Q4 2022. This is a substantial increase of 12.2% in a single year. 

While there are different ways to consolidate your debt, the most common way is through procuring a loan. However, your ability to qualify for a consolidation loan depends on your current credit score. Learn more about the debt consolidation process in Scarborough here.

OPTIONS FOR A CONSUMER PROPOSAL IN SCARBOROUGH, ON

To file a consumer proposal, Scarborough residents must go through a Licensed Insolvency Trustee in the area. Consumer proposals allow their participants to pay back less than what they owe to their creditors. Despite how good that sounds, it comes with some drawbacks and should be a last resort, much like bankruptcy. Many Canadians are opting for consumer proposals over bankruptcy, with a 28.3% increase in consumer proposals from 2022 to 2023.

In 2023, around 14,996 people filed for consumer proposals in Toronto, including Scarborough. In fact, 87% of all these insolvency filings were consumer proposals, higher than Ontario’s 81% rate as well as 79% across Canada.

Paying less than what you owe at a lower interest rate comes with some heavy consequences. For one, your credit takes a hard hit. In addition, the consumer proposal will remain on your credit report for up to three years after you complete the five-year program. This can make acquiring credit or buying a home or auto more difficult.

HOW BANKRUPTCY WORKS IN SCARBOROUGH

Many people living in Scarborough can find it difficult to keep up with the cost of living. If your debts have been piling up to an unmanageable amount, declaring bankruptcy might be the solution to your money troubles. The numbers clearly show that many Canadians are finding value in Bankruptcy. In all of Toronto, including Scarborough, they increased by 25% from 2022 to 2023.

However, one must never take bankruptcy lightly, as it is only a last resort.

Remember, declaring bankruptcy gets most of your debts forgiven, however, you forfeit most of your valuable assets in return. In addition, you will no longer experience wage garnishments. Conversely, you may not be able to obtain credit for seven years, and there is a limit on how much you can earn during bankruptcy. If you’re thinking about filing for bankruptcy in Toronto, Ontario call us to speak with a professional who can help you make an informed decision.

YOU ARE NOT ALONE

Many Scarborough residents reached out to Debt.ca to finally tackle their debt problems. They were struggling with an average debt load of $19,742 but now have the help they need to get their finances, and their life, back on track.