Does consolidating your credit cards mean
If you have enough cash left over after subtracting expenses from income, consolidation will be presented along with other options. How do you know if a debt management plan will work in your favor?
When a counselor is knowledgeable and compassionate, these sessions can be enlightening and motivating. If he or she acts bored, judgmental or pushy, request a different counselor. First, the bulk of your balances should be in unsecured debts, such as credit and charge cards, personal loans and, sometimes, collection accounts.
These are not quick fixes, but rather long-term financial strategies to help you get out of debt.
When done correctly, debt consolidation can: There are several ways to consolidate debt, depending on how much you owe.
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.While it’s not exactly fun to be locked into the typically long repayment periods (especially with student loans and mortgages), at least you know for sure they’re going to be paid off as long as you stay the course. Think about it, with an installment loan, as long as you pay the minimum on time every month, you’re guaranteed to pay the loan off.But if you do the same and make minimum payments on your credit cards, you could be facing endless years of debt. So what are you supposed to do to pay off your credit cards? Credit card debt consolidation can take on many forms but the the purpose remains the same no matter the form: simplify your payments and lower your interest rate or rates.According to a recent study by Trans Union, there are currently roughly 43 million credit cards in use in Canada.Just in case you were wondering the current population of Canada is around 35 million, this means there are more credit cards in use than people in Canada.