What is Debt Reduction?
Debt Reduction (Debt Reduction in Repayment – DDR) provides assistance to borrowers who have exhausted all other sources and five years have passed since they left school and have long-term financial difficulty in repaying their student loans. Debt Reduction reduces your principal loan if your annual income payments exceed a given percentage of your income. Detailed information can be obtained from: http://osap.gov.on.ca. Choose “Information” then “Repaying Your Loans”. What happens if I simply don’t repay or if I declare bankruptcy? If you fail to repay your student loans your debt may be turned over to a collection agency, your credit rating may be affected adversely, your income tax refund can be withheld and you will not be eligible for student loans in the future. You cannot avoid repaying your Canada Student Loans, Ontario Student Loans or your Canada-Ontario Integrated Loans by declaring bankruptcy for a period of ten years after the end of your studies. What if I have a permane
As Americans become increasingly more in debt, more and more debt reduction companies have sought out consumers to offer debt relief. Debt reduction works by consolidating all non-secured debts, such as credit cards and medical and tuition bills into one monthly payment, usually substantially lower than the combined payments a debtor is currently making. The way that debt reduction works, is that the consumer pays the agreed upon monthly amount to the consolidation company and gives them authorization to make payments to the individual creditors on their behalf. The company negotiates lower interest rates, or sometimes, zero interest. Creditors are sometimes willing to make such arrangements, because they are more likely to receive payments on time from a debt relief organization than an over-burdened consumer. Debt relief organizations form relationships with thousands of creditors. Due to these relationships, creditors are sometimes willing to forgive some of the debt. The Consumer F
