It’s no surprise debt is quite commons amongst everyday Canadians. In fact, you are currently most likely borrowing from a few different lenders. Think about it. Do you have a credit card, a car loan or a bank loan or all of these? Then you are within this group of Canadians.
If this is the case, one thing you should be well aware of is the varying interest rates between the different lenders and type of debts. Don’t get despaired with your financial situation, debt consolidation can help, but, first you must understand what it is.
By borrowing money from a low-interest lender in order to pay off high-interest debts, you are consolidating your debts. Doing so will help you get rid of higher interest debts by combining them into one, lower-interest loan that’s easier to keep track of. I bet you’re asking yourself why you should consolidate your debt? Well, here’s why.
Why should you consolidate?
Deciding to get yet another loan may at first seem to be very worrisome, and the last thing you’d ever consider. However, there are a few great reasons why debt consolidation may be perfect for you:
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Get out of debt faster by paying less interest
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Lessen monthly debt payments and simply planning with your finances
Understand Your Spending Habits & Create a Strategy for Expenses
Before debt consolidation is even a consideration you to have a firm understanding of you spending habits. Using free online financial management tools, such as ATB Trackit can help you keep an eye on your spending and assist in budgeting.
Having a great expense strategy in place, will also help to avoid or eliminate credit card charges and additional loans with higher interest. The worse thing you can do here is to improve your financial position, then wind up back at square one after racking up your debt again.
Debt Consolidation is a Powerful Tool, Not a Solution
With that being said, most people view debt consolidation as a solution to their financial stress and situation. However, what they don’t realize is it’s probably one of the most useful tools for managing their debts. Save thousands of dollars by lowering your interest rates reducing the stress it brings along with it.
At AKAL Mortgages, our team have help you explore this option in greater depth to help you further assess your current financial position and help you to set a plan for improving it.
When we say Yes! We stand behind our promise.
