Is consolidating your debt a good idea Granny chat site sa

Debt consolidation is one of those terms that Canadians have a lot of confusion about. You’ll learn everything including the answers to common questions like: In simple English, debt consolidation involves taking out one big loan to pay off many small loans. But if you take out a ,000 student loan, you will get a better interest rate.

By the end of this short guide, you’ll be a debt consolidation pro! For example, if you buy a ,000 TV from a major retailer on credit, they will charge you a very high interest rate.

And debtors with property such as a home or car may get a lower rate through a secured loan using their asset as collateral.

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But when it comes to paying down debt, it can get complex and I want you to be aware of the different options.

If you are confused here, feel free to drop me a comment.

I’ve worked in the financial services industry for 20 years and so I thought that I’d explain in plain English what debt consolidation is, the pros and cons, and how it works in Canada.

So debt consolidation is really about increasing your leverage with the primary goal of lowering your interest rate.

If you have not always been able to pay your existing debts most lenders will see this as a red flag.

But if you can offer security or a strong co-signer the lender will be more willing to work with you.To qualify for a debt consolidation loan, creditors are looking for a few things.In short, financial institutions want you to demonstrate that you can make the monthly consolidation payment, in addition to paying for your regular monthly bills and expenses.Make sure you fully understand the interest rates and fees before agreeing to a consolidation loan as with bad credit these can be substantially higher.I’m sorry about all the warnings, as I know you’d prefer to hear clear answers.For example, the worst-case scenario is the creditors can force the sale (foreclosure) of the asset to pay back the loan if payments aren’t met.

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