As per recent studies, a major chunk of an average Canadian’s paycheck goes away paying mortgages as well as bills and loans, and we all know they come with different interest rates. Especially, when it comes to credit card bills, the interest rates are always around 15%-20%, which when you compound with the basic amount to be paid back, becomes a hefty amount. However, if you plan to apply for a debt consolidation scheme, these issues may go away. If you are wondering how to read on to find out.
Some reasons why you should choose debt consolidation
- Clear your debts affordably: One of the major reasons why you should opt for Debt consolidation is its an opportunity for you to pay off your debts and loans affordably. What happens here is, once your policy kicks in, all your existing loans and dues (even your mortgage) would be consolidated to one account and you can repay all the dues with a single transaction every month and that too at a lower interest rate. You will have to worry about spending more on interest rates as they will be nullified.
- Repay faster: With debt consolidation, as you have the option of a lower interest rate, you can choose to pay off your debt quicker. This can be done by increasing the monthly re-payment amount. Another benefit of doing this is, if you are not happy with your present credit score, you will see an improvement in that as well.
- Simplifying finances: This policy can help you simplify your finances as well. As all your debts will be allocated in a single account, you will not have to set reminders of multiple repayment dates anymore. This will not only relieve you from stress but give you time to better plan and manage your financial expenses better.
- Lower the re-payment interest rate: Another important reason for choosing this scheme is that it can lower the interest rate of your debt repayments. Ideally, the average interest rate on the credit card is around 16% and for personal loans, it’s somewhere below 11%. Depending on your loan amount as well as your term length, the interest rate on your debt consolidation scheme will be much lower than both of the mentioned policies.
These are only some of the reasons why you should consider debt consolidation mortgage Toronto to repay all your dues and loans. It’s a way out from paying extra on your bills as well as an option for you to make some savings. For further details, speak with one of your local debt consolidation brokers like One Mortgage Group.