Debt Settlement

Learn who is eligible and when it’s the best option for dealing with your debt.

Use a Debt Settlement to Become Debt Free

How do Debt Settlements Consolidate Debt?

A debt settlement is an arrangement with your creditors to accept a portion of what you owe as payment in full. The full amount owing on each debt is not repaid when you settle your debts.

This means that if you have a lump sum of money available, you could approach your creditors with an offer of what you can afford to pay back. If your creditors accept the money and sign the settlement agreement, they agree not to collect the unpaid portion of the debt from you later on. On a side note, here are some quick tips on how to communicate with creditors

Where does the Settlement Money Come From?

The lump sum of money (debt settlement) must be available at the time the offer is made. It might have come from the sale of home or other asset, an insurance or inheritance payment, or even as a gift or loan from a family member.

A debt settlement is the right option for some people to consolidate their debts, but it depends on someone’s circumstances if their creditors will accept the offer. Unless there are additional extenuating circumstances, creditors are less likely to accept a settlement offer from someone who probably could pay back everything they owe.

Contact Us for Help with Debt Settlements – Is It The Right Debt Consolidation Option for You?

If you think that a debt settlement might be a good option for you, speak with one of our Debt Settlement Specialists to find out more. They will help you look at all of your options so that you can make the decision that’s right for you.

To make an appointment to speak with one of our Counsellors or to ask some questions, give us a call at 1-888-527-8999 or chat with us online. We are happy to help answer your questions about using a debt settlement to see if it is the right debt consolidation method for you

 

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Debt Settlement in Canada | Program Overview

Consolidate by doing a Debt Settlement

 

<< Return to the Debt Consolidation blog overview page

See if debt settlement makes sense for you.

Speak with a non-profit credit counsellor.

Debt settlements are just one of 7 debt relief options available in Canada (5 are available in all provinces). Before deciding to pursue a specific option, it would be wise to speak with a credit counsellor, review your situation, and determine which option is going to help you achieve your financial goals. Speaking with our counsellors is always free and confidential.

Related Articles

Debt Settlements

Settling your debts for less than you owe is not a common way to deal with debt. Here’s why.

Debt Settlement Dangers

Working with a for-profit debt settlement company can cost you. Here’s what to watch out for.

Risks & Consequences

Be aware of what’s at stake when you settle your debts with a for-profit company.

 

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