Beaudin Groupe Conseil - Demystifying debt, credit

Your bank doesn’t hate you!

You have decided that it is time to tackle your debt? Wise decision. “But will my bank hate me?” Banish that thought! Quickly!

Your bank won’t hate you, even if you borrowed a large sum of money: it doesn’t have feelings like a human does. Banks make lending decisions as they would for any another business decision and use different factors to make up their mind.

Here is what they look at:

    Your income: it’s with your income that you will pay off your debt.
    The value of your assets (investments, real estate). Someone that has saved up has a better chance at paying back his loan. Some assets, like a vehicle or a house can also be given as security or mortgaged.
    The value of the loan or credit line: it must be reasonable in relation to your situation.
    Your credit history: the higher the score, the more chance the bank will say “Yes!”
    If you have a co-signor or coborrower: If a second person is listed on the contract, that person is also liable and may be called to pay off your debt if there is a problem.

The bank will analyze its financial risk with the information you provide. If, one day, you default on your obligation, the original decision will have been made in an objective financial context. The bank will have no reason to hate you.

In any case, your bank, or any other creditor, must comply with the Bankruptcy and Insolvency Act if you decide to file a consumer proposal or a bankruptcy to tackle your debt.

Make an appointment with a Licensed Insolvency Trustee from Beaudin Groupe Conseil; we are here to guide you as you move forward.


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