Consolidating all of your current debt will make a difference to you and your family in saving and planning for the future. Since the Bank of Canada has decided not to increase prime interest rates, now is a great time to take advantage of low lending rates. This means the lending rates will remain the same for the foreseeable future. The average family owes $150.00 dollars for every $100.00 they earn. How badly are you relying on credit to keep you going? Here are a few reasons why debt consolidation may be one solution for you.
Why should I consolidate my debt?
- By paying off all of your higher interest credit cards in full you will save the difference in interest. Pay all of your Store Credit cards, for example Sears, The Bay and Canadian Tire not just Visa MC and AMX.
- Your banking overdraft fees, interest and monthly surcharges will no longer be added to your current statement. No more penalties in late fee’s and account charges.
- Pay your balance and outstanding amount for your cable, Internet & phone (are you in a contract, If not shop around for better prices).
- Eliminate your stress of collection calls.
- Essentially get a loan for all debt that you owe, roll it into one monthly payment and make sure the interest charged is less than your previous combined interest charges.
Where to look for a consolidation loan.
There are other options to traditional banks consolidation. Some are credit unions, trust companies and private financial services that provide affordable open loans to people with bad credit.
How will this help you and your family?
- By consolidating all of what you owe into one payment you will only be making one payment instead of juggling money from one account to the next.
- The consolidation loan will usually be at an interest level less than the interest rate your credit cards were at. Saving you money.
- Preserving you credit rating by paying off all outstanding debt will look great on your credit report. One monthly payment will generate positive credit history moving forward into the New Year.
- Trying to keep on top of each individual account, card, amount past due is time consuming and stressful.
Making resolutions for the New Year with a clean start will enable you to keep your promises. Consolidating your past financial debt into one affordable payment, lessening your over all interest and expenses is the perfect way to kick off the New Year.
Once you have made a fresh start you are now able to continue in the correct direction. You will start to climb out of debt, create good credit history and most importantly become less stressed by sticking to a budget you can afford. You may now start to, take back control of your debt and are on your way to remaining debt free!
For more valuable information about how to manage money, please visit http://www.prudentcreditrepair.ca.