In hiring a business partner since a debt consolidation company is considered a partner, there must be certain qualifications that you need to check. It's more of like a background check and of course, that's basic. These are some of the basic stuff that needs attention when choosing to entrust recovering finances with:
- Experience: They have been offering financial education services, debt management plans, and credit counseling since .
- Qualifications: A national organization | A+BBB rating| AICCCA member
- Specialization: Their credit and housing counselors are accredited nationally and have numerous years of experience.
- Reputation: ConsumerAffairs.com dubbed the organization as one of the most reliable debt counseling organizations in the country.
Aside from these factors, allow us to lead you to some learning about debt consolidation.
Why Is Debt Consolidation A Viable Option?
One way or another, if you are in debt, you might have asked yourself if debt consolidation is a good idea. This post will try to explain how a debt consolidation loan works. It will also be explained if debt consolidation can assist you or not. After all, nobody wants to be around with any debt as it takes the fun out of life.
In Ontario, a debt consolidation loan is a kind of loan that you can make to pay off your other loans. This new loan, which is usually from a different lender, will then be subjected to a different term compared to your current loans. A debt consolidation Ontario loan can be a life saver for individuals with several debts on hand. This can quickly resolve three of the worst problems that an individual have, namely:
High Interest Rates
Credit cards are known to have enormously high interest rates; some can reach up to 25% or more. This kind of rate will put your debt to grow faster than you can pay it off. It is like your debt is on steroids. A consolidation loan can definitely assist you on this one. Finding a lender that offers a lower rate will allow you to save more in the long run.
High Monthly Payments
High monthly payment is another dilemma for individuals with several debts. They are struggling to keep up with the payments, but frequently failed to do so. With a consolidation loan, monthly fees can be lowered most of the time. You can simply stay above water and let you have some breathing room.
Confusion Because of Too Many Bills
This is a common scenario for individuals with several debts at hand. They lose track of the details of payment such as the amount due and date due, which can cause a detrimental effect on your debt. Consolidation with that of CTL Law can be a solution. Your bills will be reduced to one which lets you focus your goals and can get you out of debt earlier than you can imagine.
Additional information that you should know as well, include:
- You can only avail of a debt consolidation loan for your unsecured debts such as charge and credit cards, collection accounts, and personal loans. Tax debt, old tickets for parking, and child support expenses could not be categorized as unsecured debts. Thus, a consolidation loan is not possible.
- You have the capacity to pay the agreed, payable amount for the whole duration of the program. The consolidation loan is not counted in months, but in years.
- Having just enough money. If you have paid your debts, put money on your savings and your essential expenses and you still have much cash, then you do not need a consolidation loan.
- You need to have just enough money for essential expenses, some savings and your debt. If you have too much cash left over, you're better off managing the accounts on your own.
Availing a debt consolidation loan still depends on your situation. Just always keep in mind that you still need to do your homework to gain additional and actual information from the loan company itself.