If you’re going through the lowest point in your life because of your debt, you’re not alone. According to a survey, three-quarters of Canadians are in debt, owing an amount close to sixteen thousand dollars.
Most of these debts come from student loans. While it is compulsory to get an education, it often times comes with consequences. If individuals are unable to repay their student loans after graduation, it can accumulate. The worst part is paying interest. As interest rates increase, the emotional burden and stress of being debt can have serious negative effects on individuals.
Not knowing what to do and feeling like they’re stuck in a rut, debtors fall into depression.
This can sometimes lead to extra spending. Fortunately, there is one solution to this problem, and that is debt consolidation.
What is Debt Consolidation?
If you’re in debt, you’ve most likely heard of the term ‘debt consolidation’. Either a friend or family has recommended that you give it a try.
Debt consolidation companies provide refinancing to those who are bankrupt and in debt.
A credit counsellor will be able to provide you with support and craft out a financial budget plan. This plan will include cutting unnecessary activities and expensive products out of the scenery.
How Does Debt Consolidation Help?
After designing a plan that will be able to work for you, your credit counsellor will educate you about debt management. You will be able to regain control of your finances. This will help you learn about the different ways to manage your finances and which one will work best for you.
A debt consolidation company will also provide you with the option of consumer proposals. This is when a credit counsellor works specifically to reduce your debt through negotiations with your creditors. By negotiating on your behalf or teaching you the skills, your debt can be significantly reduced. On top of that some companies help eliminate interest rates, reducing them to zero percent. They also provide free consultation so you don’t have to spend a dime.
They will provide you with credit counselling. This will not only help reduce your debt but make you more aware of your spending habits. By keeping a record of your repayments, your credit counsellor will be able to guide you through the process and save you monthly costs.