How does debt consolidation work?
Managing multiple credit cards can be overwhelming, especially if you’re juggling different due dates and interest rates.
When you consolidate your debt, you’re basically trading in all of your existing bills for a single loan at a much lower rate.
You’ll only have one payment to make each month, and if you choose a fixed plan you’ll know the exact date when your debt will be fully paid off.
You’ll also be able to set the terms of your loan based on your financial goals — you can go with a shorter repayment plan if you want to become debt-free sooner, or a longer plan if you just want to reduce your monthly payment.
Services like Loans Canada can help you find the lowest rate available to you on debt consolidation loans from Canada’s top lenders.
All you have to do is fill out a simple application form and you get matched with the best option for your specific financial needs.
Depending on how much interest you currently pay on your cards consolidating your debts could save you thousands of dollars.
Unexpected vet bills don’t have to break the bank
Life with pets is unpredictable, but there are ways to prepare for the unexpected.
Fetch Insurance offers coverage for treatment of accidents, illnesses, prescriptions drugs, emergency care and more.
Plus, their optional wellness plan covers things like routine vet trips, grooming and training costs, if you want to give your pet the all-star treatment while you protect your bank account.
Get A QuoteHere’s how much you could save
Let’s say you owe $15,000 on two different credit cards at two different interest rates:
Total Owed | Interest Rate | Minimum Payment | |
---|---|---|---|
Credit card #1 | $10,000 | 22% | $300 |
Credit card #2 | $5,000 | 18% | $150 |
With just the minimum monthly payments, it’ll take you over 25 years to fully pay off your debt, and you’ll spend $19,907 in interest alone. Yikes.
But with a good credit score and assuming you’re able to consolidate your debt into a 48-month loan at 8% interest, you can lower your monthly payment by $83, save $17,330 in interest, and pay off your debt more than 21 years sooner.
That’s a huge difference.
A simple way to break free from debt
With the threat of another lockdown growing, cut yourself loose from your high-interest credit cards.
Loans Canada can help you consolidate your credit card bills, avoid spending thousands of dollars extra on interest, and clear your debt years — or possibly decades — sooner.
So take the first step towards financial freedom and apply today.
Sponsored
Trade Smarter, Today
With a wide variety of investment chocies, CIBC Edge makes it easy for you to trade how you want, when you want.