Reduce your credit card debt with debt consolidation in Ontario.
When it comes to finances, we can get easily overwhelmed with numerous debts. We look at our consumer debts and credit card balances, and we feel as if there is no hope to ever pay off our creditors. People constantly living with the burden of debt often experience anger, frustration, fear, and even depression. The good news is that there are many options available to consumers that make becoming debt free possible.
Does your high-interest debt hold you back? You can become free of debt sooner and immediately improve your monthly cash-flow by consolidation all of your borrowed money into a single lower interest rate! Debt consolidation loans in Ontario allow debtors to deal with their consumer debt in a single monthly payment.
What is Debt Consolidation in Ontario?
Canada is observing increasing numbers of residents in search for a way to reduce the amount and the number of monthly debt payments. “Debt consolidation” refers to the process of combining several debts into a single one, resulting in one debt payment with an overall lower interest rate. A debt consolidation loan works to make the life of the consumer easier by replacing a number of bills with a single lower monthly payment. For example, if you have four credit card bills, you could get a debt consolidation loan to pay off your bills, resulting in only one payment instead of four.
Home Equity Loan to Consolidate Your Debt
The terms “home equity line of credit”, “second mortgage”, “reverse mortgage”, and “refinancing your mortgage” refer to the same thing, meaning that the creditor will lend you money against the portion of your real estate property. As an option, you may be able to take out a second mortgage in order to pay off your debts. As such, your second mortgage loan becomes your debt consolidation loan, and your monthly mortgage payments replace payments to numerous creditors.
Debt Consolidation Process in Ontario
When you contact KeyRate for debt consolidation in Ontario, we will tell you if consolidation is the best course of action. Some types of debt are eligible for consolidation, such as consumer loans, credit card debts, and public utility debts. However, mortgage debt may not be included in consolidation programs. Consumers who want to reduce their financial burden should first create a list of current debts to calculate the total debt. Our trained credit counsellor will then effectively determine if debt consolidation in Ontario will be beneficial in each particular case. The consumer can then compare the monthly payments with and without the debt consolidation loan.
A typical debt consolidation process involves the following steps:
- Consolidate all high interest credit cards to a single lower rate.
- Save more money and improve cash flow.
- Minimize stress knowing that you can now manage your financial situation.
Advantages of Debt Consolidation Loans in Ontario
One of the important parts of the debt consolidation strategy is knowing the difference between “good debt” and “bad debt”. A smartly planned mortgage can help you transfer bad debts to good debts.
The advantages of debt consolidation loans include:
- Single monthly payment. The fact that you end up with a single payment means that you do not have to worry about bills from numerous banks and creditors anymore! Having multiple debt payments increases the chances that you may forget about minimum payments to creditors, resulting in a negative impact to your credit score. It is a lot easier to pay one single payment each month, and it is unlikely that you will forget to pay your consolidation loan.
- Lower monthly payments. With a debt consolidation in Ontario, you have the option of a longer repayment period, which means lower monthly payments. You will no longer need to spend all of your income on debt repayment.
- Lower interest rates. A debt consolidation loan usually comes with lower interest rates as compared to credit card debts. In such cases, a debt consolidation loan will reduce the interest costs, helping eliminate credit card debt. As such, you will have more money each month that you can use to pay toward your loan principal.
- Simplification of the household budget. With only one debt payment to manage, a lot of stress of household budget is relieved.
- Prompt payment to creditors. All of your creditors will be paid quickly, minimizing the chance of damage to your credit score rating. If you follow the terms of the debt consolidation plan and make timely payments, it may actually help to improve your credit rating.
- Reduction of pressure from creditors. With debt consolidation in Ontario, you will forget about endless telephone calls from numerous creditors looking for payments!
Are There Disadvantages to Consolidation Loans?
Debt consolidation is probably the most typical debt solution for any consumer looking to get out of debt. However, even though it is a lot more beneficial to consolidate loans rather than continue paying different creditors, consolidation loans are not always the best option for retiring your debt. With a debt consolidation loan, it is important to realize that you do not actually lower the principal you owe: even though the interest rate will be lower, you will still have to pay off the same amount you owed prior to consolidating your loans. Overall, taking out a personal loan to consolidate debt may make debt management easier, but will not necessarily help to pay off the debt faster.
Contact KeyRate for Effective Debt Solutions
Are you tired of numerous credit card bills and endless phone calls from your creditors? Maybe, it is time to consider debt consolidation in Ontario as an effective option to minimize the number of monthly debt payments. Why would you pay greater interest rates on your credit card debt if you can transfer that loan to your mortgage or other loan to pay a much smaller interest? At KeyRate, we will carefully evaluate your situation and suggest the best options to deal with your debt.
If you want to reduce your credit card debt, contact us today to start saving money immediately. It is time to beat credit card companies and banks!
We also offer:
- Debt consolidation in Ottawa
- Debt consolidation in Vancouver
- Debt consolidation in Victoria
- Debt consolidation in Calgary