Information on consolidating credit card loans
(To learn more about debt relief companies and why you should generally avoid them, read Beware of Debt Relief Services.) Below are some of the main factors you should consider when deciding whether consolidating your credit card debt is in your best interest.Consolidating your credit card debt does not eliminate it.While we’ll always be the first to say that it’s much easier to get into debt than it is to get out of debt, there are still countless options out there for anyone looking to regain control of their spending and work toward becoming debt free. When it comes to consolidating your credit card debt, you have several options all of which can help you regain control of your finances and get on track to a better, debt free future.Probably the most common form of credit card debt consolidation is an unsecured personal loan (learn how to qualify here).If you are struggling to pay off multiple credit cards, consolidating your debt might allow you to reduce your interest rates and lower your monthly payment.However, a lower monthly payment can mean a longer repayment term and more interest paid over the life of the loan.Depending on how much credit card debt you have, you can apply for an unsecured loan to pay off the balances you carry on your credit cards.For those with either bad credit or a large amount of credit card debt, this option may not be the best choice for you.
You can do this by taking out a consolidation loan or using a debt consolidation or management company.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.Credit card debt seems to have become a fixture in the lives of most adult Canadians, but fortunately, it doesn’t need to stay that way. There are many ways you can consolidate your credit card debt, all of which we’ve detailed below.If you need help deciding whether debt consolidation is right for you, consider consulting with a debt relief lawyer to get more information and learn about all available options.According to a recent study by Trans Union, there are currently roughly 43 million credit cards in use in Canada.