Information on consolidating credit card loans
Reducing your interest rate allows you to lower your monthly payment and pay off your debts sooner.As a result, if you can’t lower your interest rates by consolidating your credit card debt, then it is probably not worth the extra cost and fees you will have to incur to do it.Even if the consolidation reduces your monthly payment, you still have to pay off all of your debt.So if you don’t have regular income or can’t afford your monthly payment, consolidating your credit card debt will not help you get back on track.Typically this is how these companies work: Instead of obtaining a new loan to pay off your credit cards, the debt management company tries to negotiate with the credit card companies to reduce your interest rates or otherwise lower your monthly payments.Each month, you make a single payment to the debt consolidation firm and it distributes a portion of your payment to each of your creditors.If your new monthly obligation is substantially lower, it usually means a longer repayment term.
One of the main benefits of consolidating your credit card debt is getting a reduced interest rate.Currently the average Canadian carries a balance of roughly ,094 on one or more credit cards. Credit card debt consolidation is when you’re carrying balances on several high-interest cards and want to consolidate or combine all those balances into one easy to manage and more affordable payment.Credit card debt seems to have become a fixture in the lives of most adult Canadians, but fortunately, it doesn’t need to stay that way. There are many ways you can consolidate your credit card debt, all of which we’ve detailed below.If you need help deciding whether debt consolidation is right for you, consider consulting with a debt relief lawyer to get more information and learn about all available options.According to a recent study by Trans Union, there are currently roughly 43 million credit cards in use in Canada.