Consolidating debt into mortgage td
One method is to consolidate all their credit card payments into one, new credit card—which can be a good idea if the card charges little or no interest for a period.They may also utilize an existing credit card's balance transfer feature (especially if it offers a special promotion on the transaction).
By doing this, you will clear up those higher-interest debts and be left with one, easy-to-track, lower-interest loan. Getting another loan may sound like the last thing you want to do, but there are two really good reasons to consolidate your debts: We've all heard the stats, and they go something like this: if you carry ,000 in credit card debt with an 18.5% interest rate and you pay only the minimum (let's say 0 per month), only of your payment is actually paying down your credit card—the other 4 is going towards interest.
Sticking with your 0 payments, you could be debt-free in a little over five years, paying about ,700 in total interest.
Do your own credit card math with this calculator courtesy of the Financial Consumer Agency of Canada If you've built up debt with a few different lenders, it may be hard to stay on top of your payment due dates and track your progress (or lack thereof).
Theoretically, debt consolidation is any use of one form of financing to pay off other debts.
However, there are specific instruments called debt consolidation loans, offered by creditors as part of a payment plan to borrowers who have difficulty in managing the number or size of their outstanding debts.
Almost all Canadians will take on some form of debt in their lives, and as an Albertan, you're likely carrying more than your neighbours in other provinces.