By consolidating your debt you can lower your interest rate and make your monthly debt payments more affordable.
Taylor’s debts are listed below:
|Creditor||Amount Owed||Interest Rate||Monthly Payment|
|TD Visa||$ 15,000||29%||$ 476.13|
|PC Mastercard||$ 7,500||25%||$ 220.13|
|CIBC Line of Credit||$ 5,000||19%||$ 129.70|
|CRA Debt||$ 5,000||12%||$ 111.22|
|TOTAL||$ 32,500||24%||$ 937.19|
She visits ABC Bank and obtains a single $32,500 consolidation loan which she uses to pay each of her existing creditors with. She now owes one single creditor: ABC Bank as all of her former creditors have been paid in full. While she was paying an average interest rate of 24%, her new loan from ABC Bank bears a 9% interest rate. This reduces Taylor’s monthly payments by $263 to $674. These savings are a direct result of the lower interest rate offered by ABC Bank.
Debt Consolidation is an option that everyone with multiple debts should consider. Even if you only have a single debt it’s always a good idea to investigate ways to replace that debt with lower interest debt to reduce your monthly payments or get out of debt sooner.
Not everyone can qualify for new lower interest credit (a Consolidation Loan) to consolidate their debt. Lenders will consider your credit rating, income, job security, and credit rating among other factors when reviewing your application for a consolidation loan. Many people facing financial difficulty are unable to meet the strict requirements of lenders offering lower interest rate loans.
We view Debt Consolidation as one tool in our toolbox. We start with an in-depth review of your financial situation: What you own, what you owe, and what you earn. With this information in hand we consider a number of options including Debt Consolidation. While we don’t directly offer Consolidation Loans to our clients, if Consolidation Loan is right for you, we are pleased to refer you to a reputable lender who does.
If you’re dealing with too much debt, consider all of your options by meeting with a licensed Trustee in Bankruptcy. Only a Trustee in Bankruptcy can offer legislated solutions including Consumer Proposals and Bankruptcy. We provide free, no-obligation, confidential consultations and promise that you’ll walk out of your meeting with us feeling well informed and relieved. Our no-pressure approach aims to give you the facts so that you can make the best decision possible. What are you waiting for? Pick up the phone and dial 844-446-7771 to speak with a Trustee now.