Why Consolidating Your Debt Works

debt consolidationThere are many situations in life that can lead to bad credit, but the good news is that there is help! You shouldn’t have to be banished to poor credit forever, and here we’re going to discuss why debt consolidation works. The important thing to understand about Canada debt consolidation is that is not a one size fits all solution; without consumer credit counselling services your chances for staying debt free are diminished greatly. While debt consolidation will help you clear out the bed debts, if you don’t learn to use credit wisely you’ll never escape the debt trap.

What is Debt Consolidation?

Consolidation is just a means to an end. You’ll be able to take all of your existing bills and roll them together to get a single monthly payment, an interest rate you can live with and finally an end date to your debt. Some debts may end up taking a little longer to pay off than if you had paid the minimum payment, but then again you wouldn’t be able to negotiate your monthly payment down either.

Who Can Consolidate Debts?

Anyone can virtually do it, and you don’t need a debt consolidation company to act on your behalf either. It does help though; dealing with Canadian debt can be tricky and you want a professional on your side to help you through the process. The key to getting a good deal is having a good negotiator. Your debt consolidation specialist should have an extensive knowledge of the credit system and be able to help you understand your rights and obligations as a borrower. The last thing you want to do is to work with a Canadian debt consolidation specialist who doesn’t have much experience.

Is Debt Consolidation Hard?

It can be, depending on your situation. The hardest part of the process is gathering up your debts and reviewing your credit report. You’ll have to work with the consolidator to find erroneous or false information on your credit report and put a note on the file. You’ll have to find all of your debts and then decide if you want to pay them off or not. Debt consolidation only truly works when you’re paying down all of your debts. If you still have debts outstanding at the end of the process you could wind up in the same situation that you started with.

Is Debt Consolidation Right for You?

Debt consolidation will work on virtually any kind of debt, but it doesn’t work all on its own. You will need to get consumer credit counselling services to ensure that you don’t end up in a pit of debt again. This will help you understand how to avoid bad credit behaviours and how to start building credit for the future. You won’t be able to get a mortgage (first or second mortgage) unless you can prove that you’re working on your finances. If you would like more information about debt consolidation, contact us!

Contact us today and see what we can do for you.

Debt Consolidation Done Right

Debt ConsolidationNo one wants to end up in a lose-lose situation, and that’s why when you’re considering debt consolidation you want our Toronto mortgage brokers to help you find the right solution. You can turn the equity in your home into a deal that can clear the slate and help you get on the road to being debt free. Why should you get trapped in a losing situation when there is help out there for you? From understanding what debt repair solutions work to finding out how to spot the ones that don’t, we’ll talk about everything you need to know here.

Don’t Trust Random Emails

Thousands of Canadians each year are duped into taking a deal that’s not real – if you receive a random email about debt consolidation or credit repair, don’t blindly give your money up. Find out who this company is, what their reputation with the Better Business Bureau is. We’ll be able to help you understand your rights and responsibilities as a borrower, help you find consumer credit counseling and show you how you can use the equity in your home to pay off your debts.

Advance Fee Credit Cards are a Scam

If you’re approached or offered a credit card for an advanced fee that isn’t there to secure the credit card (pre-paid), it’s a scam. You can’t fix your credit with a pre-paid credit card. It just doesn’t work that way. The only way you’re going to repair your credit is by debt consolidation – working through the debts you have now and building new credit for the future. The cash only route is never going to be able to help you repair your credit and anyone that asks for money upfront is someone that you want to avoid.

A Home Equity Loan Can Settle Your Debts

With a home equity loan you can get a debt consolidation deal to get things paid off in one fell swoop. You’ll only have to pay a single bill each month, making your debt repayment easy as pie. Some people will structure it a little differently with bimonthly payments or a partial settlement. Either way, you’re going to want to make sure you don’t just get a loan but also get consumer credit counseling. People who go through counseling are 5 times more likely to keep their debts paid off and use credit more wisely.

Don’t Get a Bad Deal

Don’t get a bad deal – talk with one of our Toronto mortgage brokers today and see what kind of debt consolidation deal you can get. We’ll look at all of your debts and show you how you can get on the road to being debt free. The last thing you should have to worry about is being stuck in the debt bubble – call us today and see what you can do with a home equity loan for your bills. Isn’t it time you put it behind you and moved on with your life?