Dealing with multiple debts is always challenging. Whether it’s just keeping track of payments or deciding which bill to be late on this month or even dodging collection agencies, staying on track can be an overwhelming challenge. Quebec debt consolidation is one answer that can help you take back control.
Debt consolidation loans in Canada are easy to understand. Debtors take out one loan to pay off all their other debts, leaving them with one payment each month. If your credit is good, the interest rate on your Quebec debt consolidation loan will be lower than the average rate you were paying on all your consumer debts prior to refinancing. If your credit is poor or average, your interest rate may be higher. In these circumstances, it may be wiser to choose a debt settlement plan.
With debt consolidation, it will be easier to manage your payments. With just one debt, you’ll have only one payment to make per month. Since the interest rate is lower (typically), you’ll also have extra money to put down on the principal. Creditors will also leave you alone, as they have effectively been paid.
If you really can’t make the minimum payments on what you owe, debt consolidation won’t help you, and you’ll have to look at other debt relief options like the previously mentioned debt settlement, a consumer proposal, or bankruptcy. Find out which option is best for your situation by filling out this Canadian debt relief form.
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