How Port Moody Debt Consolidation Can Help You Breathe Easier
Debt is one of the few things that North Americans have in common across the board. Whether you have a sufficient amount of credit cards that need repaying or if you have taken out emergency loans that have yet to be paid, everyone owes money in one way or another. Debt consolidation is a convenient financial tool that you can use to lower the amount of money that you are putting out into paying back the money that you owe, helping you to breathe easier.
Having a Payment Plan
When you go through debt consolidation you will be working with a financial advisor that will develop a payment plan that is convenient and fits within your budget. This helps to take away any questions of how much you need to pay and when it needs to be paid. It also gives you the opportunity to come up with a personal budget so you’ll find yourself spending less on items that you may not need. It is the job of the financial advisor to make sure that your payment plan still leaves additional money for monthly expenses.
One Line of Debt
Much like its name suggests, consolidating your debt means that everything that you own will be combined into one giant line of debt. You won’t have to worry about making individual payments on your Visa, Mastercard, mortgage, or on your vehicle. Instead you will be responsible for one monthly payment of an agreed upon amount. This in itself is far more convenient for people as they won’t have to worry about missing payments with different companies and having collections agencies giving them phone calls throughout the night.
Convenient Interest Rates
Think about all of the debt that you have with different companies and then try to think of the interest rates that they all have off the top of your head. It’s relatively impossible isn’t it? You may have one credit card with 11% interest and another with 3.5%. The amount of interest that each line of debt has can drastically influence the amount of money that it takes to pay off the principal. With debt consolidation everything that you own is in a single line of debt that has a single interest rate. That means that every payment you are responsible for will be of the same amount without having to worry about simply paying off the interest and not touching the principal at all.