Canada is one of the fastest-growing nations in the world. However, the changing scenario of easy credit availability, increased personal spending, and rising inflation rate in the Canadian economy has changed the face of debt in Canada. Canadian citizens are facing a debt rise, and today, I am going to explore effective debt consolidation services in this post to mitigate debt challenges efficiently in Vancouver/Surrey.

What Is Debt Consolidation?

When your present debt crosses your paying limits against your income, you need a new debt to pay all your existing debts with lower interest rates and monthly payments or both so you can quickly pay all your debts. In short, debt consolidation is a financial strategy to combine multiple debts into a single, manageable credit card or loan.

What Debt Can You Consolidate?

You can consolidate several types of secure & insecure debts in Canada.

Credit Cards:

Credit cards often come with high interest rates. Moreover, different deadlines for the payments of multiple cards can disrupt your payment schedule and lead to late fee charges.

For credit card debt consolidation, you must look for one credit card provider with lower interest rates and lower amounts for monthly payments, or both.

You can think of either a balance transfer or a loan. Many credit cards offer nil to low APR rates for a six-to-twenty-one-month introductory period, but their interest rates reach double digits afterward. So, use such credit cards only when you can make fast payments, particularly before the end of the introductory period.

Student Loan:

There are different types of student loans in Vancouver/Surrey, including federal and private loans or a mix of these. For federal loans, a Federal Consolidation Loan is the way to consolidate your various federal student loans into one. Still, it often comes with several disadvantages, such as borrower students may end up paying higher interest rates because the new rate is based on the average of all loans being consolidated, which may be higher than you anticipate.

It also takes away some benefits, such as interest rate discounts, principal rebates, and loan forgiveness or cancellation eligibility.

Home Equity Loans or Line of Credit:

If you are looking for a secured type of loan for debt consolidation, your home with equity is a handy solution. You can draw a home equity loan or use a home equity line of credit for your debt consolidation. It uses your home for collateral. So, you will end up with a low interest rate and low monthly payment benefits.

Debt Consolidation Services

There are government and non-government debt consolidation services operating in Canada. However, DebtConsolidationBC could be an excellent choice for your Debt Management Services Surrey requirements. They have an expert team to find the best debt consolidation solution based on your existing debt and income.

They will come up with an easy plan meeting your requirements and other useful ways to reduce the burden of debt affecting your credit score, financial health, and mental health in sum.