Personal Finance

debt consolidation or paying from incorporation which is better

  • Last Updated:
  • Oct 30th, 2020 4:49 pm
[OP]
Newbie
Feb 26, 2020
26 posts
3 upvotes

debt consolidation or paying from incorporation which is better

Hi,

I have loans and locs total up to 80k . paying mostly only interests since last 3 years. I want to clear them off as the interest and monthly payment are almost same. I took secured loan on my house also and spend that amount too. now since i want to clear all those loans and locs which option is best.
1. Take money from incorporation pay them by 10 months. Here i have doubt about how it works with personal tax
2. Taking debt consolidation so i can keep extra money in incorporation.
1 reply
Newbie
Feb 9, 2020
69 posts
17 upvotes
Etobicoke
siva10 wrote: Hi,

I have loans and locs total up to 80k . paying mostly only interests since last 3 years. I want to clear them off as the interest and monthly payment are almost same. I took secured loan on my house also and spend that amount too. now since i want to clear all those loans and locs which option is best.
1. Take money from incorporation pay them by 10 months. Here i have doubt about how it works with personal tax
2. Taking debt consolidation so i can keep extra money in incorporation.
Kinda late, but better late then never.

Debt consolidation would be my go plan to pay off my loans and stuff. Assuming you don't need your credit card to live on. If you have enough income to live on what you make alone that I would suggest you do that.

Usually debt consolidation want you to pay 30 cent to the dollar. Meaning you would have to pay $24,000 in equal install for over 5 years I believe. Again, 30 cent is the average of what they want you to pay, ideally you want to settle for either 25 - 20 cent to the dollar value.

Once you go ahead with your debt consolidation, I would pay off that total as fast as you can. That way you can start repairing your credit sooner. Assuming you can't pay at once and rather pay in installment, I suggest you get a secure credit card, so your credit can start going up during the repayment term.

let me know if you have any questions, I'll try to explain better.

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