Average Canadians have more than one type of debt, including credit card debt, bank loans, student loans, mortgages, etc. In many instances, if you have more than one credit card, chances are high that you may have debts on more than one credit card.
Moreover, each loan or credit card charges different interest rates, and paying high-interest rates seems burdensome. In such situations, financial experts at Credit720 advise adopting credit consolidation strategies to get relief from multiple and high-interest-rate debts.
What Is Credit Consolidation Edmonton in Canada?
Debt or credit consolidation in Edmonton is the process of combining payments of two or more debts into one monthly payment with reduced interest rates. The ultimate benefits of debt consolidation in Calgary, Edmonton, Lloydminster, & Alberta are:
- After credit consolidation, you will have one monthly payment, streamlining your payment schedule and reducing your stress on managing your finances.
- Credit consolidation payments always have a lower APR (Annual Percentage Rate)/interest rate. Thus, you can save some bucks (hundreds, not thousands) during the entire debt lifecycle.
- Some credits come with fixed repayment terms with an exact end date. In the case of credit consolidation payment, you can pay more than decided installments and finish up all faster.
- In some cases, borrowers struggle to meet their ends after payments. Credit consolidation payments can be made affordable for extended periods. Of course, you may end up paying more interest in the sum.
- In credit consolidation, your credit utilization ratio will decline over time and increase your credit scores.
Credit Consolidation Strategies
Let’s learn some effective credit consolidation strategies applicable to the Canadian financial environment.
Credit Consolidation Loan:
If your existing loans have high-interest rates, you can borrow money from the loans with lower rates and reduce your payment burden.
HELOC (Home Equity Line of Credit):
Homeowners in Calgary, Edmonton, Lloydminster, Alberta, and other regions of Canada can use the equity in their property to secure a line of credit. HELOCs typically provide credits with lower interest rates, and you can use them to pay credits with high-interest rates.
Balance Transfer Credit Cards:
Canadians have the privilege of enjoying lower or zero interest rates for some credit cards for a specific period. So, they can transfer their credits from high-interest rate credit cards to low-interest-rate cards and proceed to pay the principal amount faster.
Debt Negotiation & Management Plans:
Credit720 can help Canadians in debt negotiation, keeping their interest in mind. They also provide credit counseling services and offer payment management plans for each client under their unique circumstances.
The Canadian government provides a provision to reach a formal agreement with the borrower and creditor to plan to repay a portion of the debt over a period.
It is the worst and last option where LIT (Licensed Insolvency Trustee) can sell your asset or its portion placed as a mortgage to pay your debt.