When we are over-burdened with debt, even a ray of hope helps. Here are some useful tips on what to choose, credit counselling or bankruptcy.

Often people are confused when drowning in debts to choose the right option so that they can save their lives from endless debt. The last resort being bankruptcy, people choose it without knowing its pros and cons. Thus, we have created this comprehensive guide to guide you what exactly should you opt for when you want immediate debt relief in Surrey.

Definitions:

Credit Counselling refers to opting for strong debt management plans to achieve the best results.

Bankruptcy means that you have declared yourself completely unable to pay any money via a legal process.

Pros and Cons of Opting for Credit Counselling:

Good Points:

1. You opt for a financial advisor who will help you by providing debt assistance in Greater Vancouver. He will help you make smart debt negotiations and reduce debt amounts initially.
2. You only are liable to pay a monthly amount that will be considered to consolidate debt slowly.
3. The credit counsellors handle all the calls and collection part which helps you in easy debt consolidation to get out of debt in Richmond and Langley.

Bad Points:

1. You still need to pay the full amount in the tenure of 5 years.
2. If some creditor refuses to include a credit counselling service, you still have to pay them full else they can take legal actions against you.

Pros and Cons of Opting for Bankruptcy

Good Points:

1. You can have a new financial start with personal bankruptcy that means you are no longer obligated to pay no interest or debts at all.
2. You get appointed a Licensed Insolvency Trustee, who will ask everything about how much money you owe other people and what assets you own etc., and then declare you bankrupt if you couldn’t pay debt.
3. You get creditor protection, which means your creditors cannot harass you for payment.

Bad Points:

1. If you are unable to get bad credit help and declare bankruptcy, your credit score becomes worse.
2. All your assets are seized by the government until your debt clears off.
3. You lose all your assets if your debt surpass everything.

What to choose?

Before selecting any of the above options, you need to do a proper assessment of debt from your end. If need be, talk to the creditors and seek extra time. Even evaluate other options like debt consolidation loan, consumer proposal in Surrey, Burnaby, Delta and other parts of Canada to reduce the loan amount as much as possible.

Looking at the downsides of Bankruptcy, we prefer you should always give priority to credit counselling and keep bankruptcy as your last resort only!!

Some Last Words

As you have learnt about both Bankruptcy and credit counselling, it is time to seek help from experts in this field for the faster and best advice. Credit720 provides the best debt Assistance in Surrey and other parts of Canada, be it for personal loans or business debts. Contact them today for the best financial service!