WHAT ARE THE OPTIONS FOR DEBT CONSOLIDATION
When there are multiple debts, it can be stressful to keep a track of them. Various debts can also be overwhelming. Sometimes it might make you feel that there is no end to it. When you fail to see the light at the end of the tunnel, it can become more stressful. If feeling that way, you should consider reaching out to York credit services. They will help you to find the best debt consolidation options for you. You can read about how they have helped people here: https://www.bbb.org/ca/on/north-york/profile/credit-and-debt-counseling/york-credit-services-0107-1344675. Following are some of the most common options for debt consolidation.
Debt Management Program
One great way to consolidate debt is by undertaking a debt management program offered by York Credit Services. The program is provided to you when you decide to undergo credit counselling. It is a thorough process that enables them to have a thorough understanding. Each financial situation is unique, when they understand the situation they will be able to curate the solution according to it. They will help you throughout the process. York credit Services will speak to the creditors about the proposal that you are fit for the program. They will speak to them on their behalf. Though the process might seem daunting, it will help you get your finances back on track.
Debt Consolidation Loan
Another great option is approaching a bank, credit union or a finance company for a loan. This loan would be used to consolidate all the debts. Consolidation will turn all your smaller debts into one debt, making it easier to handle. When paying off one loan, it becomes easier to save money. The loan is usually offered at a lower interest rate. You can pay off this debt within two to five years. To qualify for the loan, you need to have some security to offer and a good credit rating. Though you can opt for an unsecured loan the interest rate would be high.
Line of Credit
To settle the debt, you can opt for a secured or unsecured line of credit or overdraft. The counsellors at York Credit services will walk you through this option. When you opt for this, you are required to make a minimum amount payable at the end of each month. This payment will help you to settle the debts. One great thing about this option is that interest rates are lower and monthly payments can be flexible. You can choose to pay it off as slow and fast as you want. When choosing this option of debt consolidation, you need to get into the habit of paying a certain amount each month. Failing to do that means you might stay in debt for longer. You must be regularly making the payment. If the Bank of Canada prime rates increase, you might have to pay an increased monthly payment. The counsellors at York Credit Services will tell you in detail about this option.