Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others. This commonly refers to a personal finance process of individuals addressing high consumer debt, but occasionally it can also refer to a country’s fiscal approach to consolidate corporate debt or government debt. The process can secure a lower overall interest debt to the entire debt load and provide the convenience of servicing only one loan or debt.
A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In this process, the LIT will work with you to develop a “proposal”—an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both. The term of a consumer proposal cannot exceed five years.
Payments are made through the LIT, and the LIT uses that money to pay each of your creditors.
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
Bankrupt is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency.
Emergency Loans to Pay Off Credit Card Balances
Emergency loans are short term personal loans meant exclusively for emergencies. They can be found online from many lenders who are able to process applications very quickly. Emergency loans are even shorter than other kinds of short-term loans. Repayment terms usually only last one or two months.