What are the benefits of consolidating your debts?
Are you in debt? You are not alone: 3/4 of Canadians are. Learn about the benefits of debt consolidation.
you are not alone
In 2013, three-quarters of Canadians said they were in debt and owed an average of $ 16,000.
- Many people struggle daily with stress and anxiety caused by debt problems.
- Getting out of debt can be difficult, but the game is well worth the effort.
If you are in debt, you could enjoy a debt consolidation.
What is debt consolidation?
Roughly speaking, a debt consolidation consists of borrowing a large sum to pay several small loans.
Why is this a good idea?
Interest on small loans is usually high, while it is often much lower on large loans. Think, for example, the interest rate on a credit card compared to that on a student loan.
- Debt consolidation increases your room for maneuver while decreasing the interest you pay.
The main advantages of debt consolidation
- A lower interest rate means you’ll get rid of your debts faster.
- It’s easier to plan and make a single payment each month.
- You can use your assets (like your house) to get a better interest rate.
- You protect your credit rating.
You reduce your monthly payments
Consolidating your debts is a great option for people looking to lower their monthly payments.
- Plus, the money you save with a lower interest rate makes all the difference.
- Finally, by consolidating your debts, you protect your credit rating because the loan is used to repay your creditors. In addition, no late payment will be reported to credit agencies, as may be the case with a debt settlement.
If like most Canadians you have debt, know that there are solutions. Debt consolidation is a great way to pay off your debts while maintaining your credit rating.