Other Solutions
Debt consolidation
A debt consolidation is a loan that you could obtain from a financial institution. The goal is to consolidate debts into a single payment with a lower interest rate. The debt-to-income ratio, the amount of debts and the credit score can make this solution less accessible.
Bank loan
In some cases, it is possible to obtain a loan from a financial institution to pay your debts. The bank will determine your repayment capacity based on your income and the total amount of your debt.
Voluntary deposit
This procedure is administered by the Quebec Ministry of Justice. It allows you to obtain protection against your creditors by depositing a portion of your calculated income for their benefits. The interest rate is 5%.
Negociate with creditors
It may be possible to negociate directly with the creditors. However, a large number of creditors and substantial debts can complicate this solution. They will all want their share with different deadlines and conditions.
Budget planning
Taking the time to create a budget at least once a month, taking into account all your income and expenses, can allow you to see where your money is going. You might be able to reduce your spending and discover unexpected surprises.