Sometimes when your income is not sufficient enough to meet all your necessities, or your needs
and spending are more than your income, naturally your next option will be to borrow and you
are in debt. You use your credit card very often and your credit card debt becomes excessive. Of
course most of the Americans have debts, but as long as you are able to make your payments
towards your debt without any default, you don’t have to worry. But if your debt accumulates
due to high rates of interest and bulk monthly payments and you are drowning in your debts, then
you are in trouble, and you need to think of the right solution such as debt consolidation to
manage your debt. This is the best way to get out of your debts.
What is debt consolidation?
In simple words, debt consolidation is taking one loan to repay all your other loans. In this case
you will have to repay back only this one loan, with suitable payment options, which means you
have only one payment instead of several payments. Doesn’t this sound exciting?
By debt consolidation, you can get
• Relief of just one loan
• Discount on loan amount
• Low rate of interest
• Low monthly payments
• Improved credit
Debt consolidation is offered by various agencies, banks and private companies and it is very
important that you are careful in choosing the right company to consolidate your debt.
Types of debt consolidation
Should you choose to consolidate your debts, you should understand what are the debt
consolidations options that you have? Let’s take a look at the types of debt consolidation.
• Home equity: You can take a loan on the equity in your home by pledging your home as
collateral. By this method, you can get large amount of loan, lower rate of interest and
sometimes tax deduction.
• Credit card: You can consolidate all your credit card balances into one credit card.
• Unsecured debt consolidation loans: Loan which does not require collateral.
• Personal loans: You can also use personal loan, which has fixed payments, and fixed
period, to consolidate your debt.
Now that you have understood about debt consolidation, you should know when you need to
consolidate your debts. Let us now look at some tell-tale signs that tell you that the time has
come to consolidate your debts.
5 signs that tell you that you need to consolidate your debts
1) The first sign is when your bills are more than your income and you don’t have enough
money to meet your required necessities after all your payments and you are continuously
seeking new loans
2) The second sign is when you are falling back on your debt monthly payments
3) The third sign is when you are paying high interests which is beyond your limit
4) The fourth sign is when you use your credit card often for even your basic spending
5) The fifth sign is when you start avoiding your creditors
If you are struggling with your debts, then debt consolidation is a good solution, and if you find
the right company, you are a winner. Visit www.mortgagesofcanada.ca for more info.
and spending are more than your income, naturally your next option will be to borrow and you
are in debt. You use your credit card very often and your credit card debt becomes excessive. Of
course most of the Americans have debts, but as long as you are able to make your payments
towards your debt without any default, you don’t have to worry. But if your debt accumulates
due to high rates of interest and bulk monthly payments and you are drowning in your debts, then
you are in trouble, and you need to think of the right solution such as debt consolidation to
manage your debt. This is the best way to get out of your debts.
What is debt consolidation?
In simple words, debt consolidation is taking one loan to repay all your other loans. In this case
you will have to repay back only this one loan, with suitable payment options, which means you
have only one payment instead of several payments. Doesn’t this sound exciting?
By debt consolidation, you can get
• Relief of just one loan
• Discount on loan amount
• Low rate of interest
• Low monthly payments
• Improved credit
Debt consolidation is offered by various agencies, banks and private companies and it is very
important that you are careful in choosing the right company to consolidate your debt.
Types of debt consolidation
Should you choose to consolidate your debts, you should understand what are the debt
consolidations options that you have? Let’s take a look at the types of debt consolidation.
• Home equity: You can take a loan on the equity in your home by pledging your home as
collateral. By this method, you can get large amount of loan, lower rate of interest and
sometimes tax deduction.
• Credit card: You can consolidate all your credit card balances into one credit card.
• Unsecured debt consolidation loans: Loan which does not require collateral.
• Personal loans: You can also use personal loan, which has fixed payments, and fixed
period, to consolidate your debt.
Now that you have understood about debt consolidation, you should know when you need to
consolidate your debts. Let us now look at some tell-tale signs that tell you that the time has
come to consolidate your debts.
5 signs that tell you that you need to consolidate your debts
1) The first sign is when your bills are more than your income and you don’t have enough
money to meet your required necessities after all your payments and you are continuously
seeking new loans
2) The second sign is when you are falling back on your debt monthly payments
3) The third sign is when you are paying high interests which is beyond your limit
4) The fourth sign is when you use your credit card often for even your basic spending
5) The fifth sign is when you start avoiding your creditors
If you are struggling with your debts, then debt consolidation is a good solution, and if you find
the right company, you are a winner. Visit www.mortgagesofcanada.ca for more info.
