These tips can help you with your debt consolidation - Mortgage Guys
  • Proudly Canadian PROUDLY CANADIAN

These tips can help you with your debt consolidation

Debt consolidation relief

When the term consolidation of debt is used, it is sometimes mistakenly interpreted as a loan, which is probably the last thing you want if you are already battling to pay your creditors! Debt consolidation relates to making your debt payment procedure easy and convenient, with just a single monthly payment. It’s enhanced by the fact that your advisor is frequently able to negotiate a lower rate of interest or fees from financial sources. This has the positive effect of helping extend your money advantage than if you had made the payment directly!

A particular advantage of debt consolidation is its simple process of discharging your debts. Reasonably, it enables the payment of one regular monthly amount to a single source, at one interest rate. This is preferable to you paying different amounts to various lenders at different times. Upon your debts being cleared, you are given the opportunity for this type of payment plan to be directed towards your other accounts, providing with a highly efficient debt management system.

A particular benefit of debt consolidation is that should you be suffering from being harassed by your creditors, this aspect of indebtedness will be significantly reduced or even eliminated. In other words; no more inconvenient and embarrassing phone calls, or even in certain cases, knocks on the door!

Eliminating the Credit Card danger

When entering into a consolidation of debt process, it’s important that your credit card accounts are closed and not reopened until you are completely free of your debt burden. Although this can in some instances prove difficult, when debt consolidation is in progress, continuing to incur debt is not the best way to become free of it! However, you can, if you wish to, retain one card for emergencies, but it should not be used for any other purpose.

Should your debt consolidation plan include paying a reduced monthly payment, your credit report could be negatively affected. In addition, whilst debt consolidation does not feature in your credit score, if your credit report shows that you are utilizing a third party, a lender may perceive it as a warning signal.  Therefore, if you are considering a loan in the near future, first have a word with a qualified professional at Mortgage Guys and get some sound advice! Debt consolidation is not just an advantage for now but also towards your future!