Pros and cons of consolidating debt

If, like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.

Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.

It’s a long article—but if you stick with me, you’ll know more about this highly effective method for reducing debt than 99% of Canadians.

Debt, as you know, is a struggle against interest payments. And once your debt rises above ,000, it becomes very hard to pay down the interest.

Many people see debt settlement –an option that advertises to help you pay off your debt for much less than what you owe– as a way out of their financial woes.

That means, on average, Canadians owed

That means, on average, Canadians owed $1.67 in credit market debt— mortgages, other loans and consumer credit—for every dollar of disposable income.

Debt consolidation is a popular (and legal) way to significantly lower your debt in Canada.

In this guide, 20-year financial expert Paul Murphy takes you through the basics of why Canadians use debt consolidation.

One option you have when you begin tackling your student loan debt is to explore loan consolidation.

But before you head down that road, here’s what you should know.

||

That means, on average, Canadians owed $1.67 in credit market debt— mortgages, other loans and consumer credit—for every dollar of disposable income.Debt consolidation is a popular (and legal) way to significantly lower your debt in Canada.In this guide, 20-year financial expert Paul Murphy takes you through the basics of why Canadians use debt consolidation.One option you have when you begin tackling your student loan debt is to explore loan consolidation.But before you head down that road, here’s what you should know.Pro #2 — Interest rates are usually pre-set by creditors, so the debt consolidation firm handling your loan can definitely get lower interest rates and reduce (or even eliminate) late fees better than you can.

.67 in credit market debt— mortgages, other loans and consumer credit—for every dollar of disposable income.

Debt consolidation is a popular (and legal) way to significantly lower your debt in Canada.

In this guide, 20-year financial expert Paul Murphy takes you through the basics of why Canadians use debt consolidation.

One option you have when you begin tackling your student loan debt is to explore loan consolidation.

But before you head down that road, here’s what you should know.

990

Leave a Reply