Are Debt Consolidation Services the Right Solution?
Household debt has become just another part of daily life for many of us.
Since the ‘90s, we’ve had low interest rates and easy access to cheap credit.
As such, we’ve become accustomed to leveraging credit to pay for everything from unforeseen expenses like auto repairs to luxuries like vacations and nice clothes.
Or simply to supplement the rising cost of living in Canada.
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However, while getting access to credit is easy, paying it off certainly isn’t.
Every time we take on more debts, not only does the principal (the amount we owe) increase, we throw more and more money at our creditors every month in interest payments.
In light of this, is it any wonder that 47% of Canadians feel unable to cover the cost of repayments and as though they’re drowning in debt?
How do debts spiral out of control?
Credit cards, store cards and unsecured or short term loans can seem like a lifeline when we’re in need.
However, that lifeline can quickly drag us down into some pretty murky depths when we see what’s on the other end of it.
Credit card companies in particular can lure us in with very attractive interest rates, but hike them up significantly after the introductory period is over.
Unless families learn to box clever and keep moving their credit card debt around, they can find that they’re paying out more in interest and paying down less of their principal every year.
This can not only prolong debts but make them much more difficult to manage.
Why consolidation can help
When you have multiple debts from several creditors, keeping track of the multiple direct debits and wildly varying interest rates can be very difficult.
Budgeting can become extremely complicated, and the idea of paying into your savings regularly may seem like a pipe dream.
Debt Consolidation Services can prove an effective way to stop wasting a fortune on interest payments, while also making it much easier to budget, plan and achieve transparency over your household finances.
Debt Consolidation comes in the form of a loan which effectively pays off your existing debts and replaces them with a single new one.
The rate of interest on a Debt Consolidation Loan is often much more favorable than other lines of credit.
You can expect to pay 19%-29% interest on a credit card, while a Consolidation Loan will typically carry an interest rate of around 10%-15%.
This makes your finances much easier to manage while ensuring that your principal is paid down much faster.
Because all of your existing debts have been replaced, this also means that your credit score will drastically improve as long as you keep making payments on your Consolidation Loan.
That said, because you’ll be able to pay more into your savings and budget more effectively you’ll also be less likely to need to rely on credit in the first place.
What can we do for you?
You can get a Debt Consolidation Loan on your own, of course.
However, our Debt Consolidation Services inform you of all your options, putting you in the driver’s seat.
We can advise on which is the best option or product for your unique needs and circumstances.
Our experts can assess your situation including your outgoings, assets and creditors to find the most effective way to take control of your life by taking control of your debts.
We can help you to make the informed, strategic decisions which will help you to live free of debt.
Want to know more? Get in touch today!
Debt can be a very intimidating subject.
Unfortunately, creditors are counting on you burying your head in the sand, so that they can make more money by prolonging your debts and gaining more in interest.
We can give you the help and support you need, regardless of how much you owe and to whom.
Since we first opened our doors in 1999 we’ve helped literally hundreds of thousands of Canadians to consolidate and pay down their debts.
We help people from all walks of life to make the right financial choices and liberate themselves from the shackles that debt places over their day-to-day lives.
If you’d like to know more about our services, call us today on (877)879-4770 to arrange a risk-free, zero-obligation and 100% confidential callback.