A debt consolidation loan is intended to pay off your other debts so that you have a single monthly payment to make rather than many. It’s usually used in order to consolidate credit card debt. Under the right circumstances, it can be an effective way of making your financial situation more manageable. Whether or not it will work for you, however, depends on a two critical things:
If you do decide to take out a debt consolidation loan, make sure you seek the help of a good credit counsellor at the same time. This is someone who can help you set up a budget, offer tips for cutting spending, help you to rebuild your credit rating, and—perhaps most important of all—help you establish a savings habit so that you won’t need to use credit cards for future purchases.
Debt consolidation can work, but only if you’re willing to put the work into changing the habits that brought you to it in the first place. For more information or to find out if debt consolidation is the best choice for you (or to find out what your other options might be), call us now for your free, no obligation consultation: in Ottawa call 613-237-5555; out of town, call toll-free 1-800-517-9926 or book online.