Living on a fixed income can be very financially stressful with the ever increasing cost of everyday living. Are you aware that Canadians over 65 have been getting more in debt lately? This data was shared in a September 2017 report by Equifax Canada and could be a significant factor why more retired Canadians are turning to taking loans for debt consolidation to help them with managing their finances.
What is Debt Consolidation?
Debt consolidation is a way to reduce the amount of money you pay for interest on a monthly basis by turning multiple loans into one that typically comes with lower interest as well as more convenient single-bill monthly payments. Would’t it make your life a lot easier if you only have one loan bill to pay instead of several?
Why Consolidate Debt?
Debt consolidation in Canada is done for many reasons which include the following:
Get rid of the stress associated with paying payday loans.
It is not a secret that elderly Canadians go for payday loans to get by when they have unexpected bills. The problem is that they usually end up taking another payday loan the next month to try to make it until the month after because of high-interest.
Paying overdue bills
Unpaid bills can severely damage credit score and accrue penalties or fees, not to mention that they can be very stressful. Paying overdue bills with the use of debt consolidation loan can help you regain financial stability faster.
Manage other loans better
Manage high-interest loans such as some lines of credit, personal loans, and the like by paying them off and saying goodbye to having to pay their rates per month. Imagine saving money on interest and instead, your money actually going towards the payment of your debt.
Eliminate credit card debt
Credit card debt has a tendency to accumulate and get even bigger as the interest gets added up to the total monthly. Paying them off is a smart move.
Get to own your expensive purchase outright
Be it a car or a state-of-the-art home addition, buying things on credit or amortization basis can wreak havoc on your finances if not kept in check. Paying for them with a debt consolidation loan means you won’t have worry about future bills and getting to own your prized purchase right away.
Be able to afford more things in life
Because debt consolidation can save you hundreds of dollars per month in terms of interest saved, you’ll be better prepared to handle unexpected expenses with your new savings or even save up for a dream vacation. That’s called making money work for you!
Looking for a way to reduce financial stress? Debt consolidation might be the right financial solution for you! If you own your home and willing to talk about ways to tap your home equity, contact us and we’ll be happy to discuss your options!