Canadians are very comfortable carrying consumer debt. So much so that recently we set new highs. But what happens when that bump in the road comes along and we start being unable to make those minimum payments? Considering consolidation should not be a last resort as the media has shamed us into thinking. Here are the top three benefits to consider if you are in a tough situation.
Maintained Credit Score Equals Lower Interest Costs
According to credit agency Equifax Canada – Canadians reached a record $1.422-trillion in the fourth quarter of 2013. Extended car loan terms, personal lines of credit, and those high interest – low minimum payment credit cards are making it easier than ever to push our personal debt loads to the limit. But what effect is this having on your personal credit rating? Did you know that 30% of the weighting of your credit score is determined by the amounts you carry in relation to the high credit limit? This means you may be able to meet your minimum monthly payment obligations and are still sinking into a worse situation over time without knowing.
If you have high balances owing on those cards – a simple debt consolidation will enable you to maintain your good credit standing while working towards a smarter long term solution to your financial problems.
Brampton Consolidate Credit To Improve Monthly Cashflow
I agree that Canadians should not use their homes as ATM machines. With that being said – for those who are truly looking to turn a new leaf in life and need to get traction – this is a great place to start. My typical client who consolidates their personal consumer debt into a secured loan against their home saves between $700-1000 in monthly cashflow. If this is utilized towards establishing an emergency fund and further saving to invest there can be a significant change in short order. Most of the time the greatest obstacle to overcome is understanding where the money is going and how exactly the process goes step by step. Here is a first hand experience of a debt consolidation scenario in order to understand more.
Removing The Worry With Consolidation
I can attest by the testimonial of hundreds of satisfied clients! This is their story – the debt was a gnawing lump at the back of their mind. It was affecting their sleep, relationships, and their ability to perform at work. What happens when you have successfully taken that high interest debt and restructured it into a convenient single low monthly payment is that you are able to focus on what is more important! This has huge financial implications as well from being able to get that better job or that raise you had you sights set on. As long as you are spending an extra ordinary amount of your time thinking about, worrying, and scheming to meet that next month’s obligations – you are not focusing on the more important items in your financial picture.
So there you have it. There are benefits in not waiting until you are under water and needing to jump the financial ship to consider consolidating your credit into something more effective. Maintaining your credit, improving cashflow, and freeing you to be your best are some great reasons to reach out to me today. Your comments and questions below are appreciated and answered promptly.