Debt consolidation

Simplify the way you manage debt. Just contact us at info@lowestrates.ca, and we’ll help you find a debt consolidation plan that streamlines your payments, saving you time, effort, and money.

What exactly does debt consolidation mean?

Between mortgage, car insurance, and credit card payments, it can be stressful and difficult to pay off all your debts. If you owe money in several different areas, debt consolidation may be the right path for you. Several companies across Canada offer debt consolidation services. Instead of paying off each debt individually, these companies combine your debt so that you only have to make one payment each month.

What are the advantages of debt consolidation?

One of the most stressful aspects about having scattered debt is keeping track of all of your payments, but with debt consolidation, this worry is eliminated.

Debt consolidators can also provide you with a single interest rate. For example, you may be paying 5% interest on your student loan, 18 % on your credit card debt and 10% interest on your car payments. When you consolidate your debt, the interest rates are averaged together into a single rate. In this case, the interest rate could be approximately 10% or 11%. In many cases, this means that your overall interest costs are much lower than they were before you consolidated your debt.

If you own a home, refinancing your mortgage is also an option to help pay off your debts. This has the same benefits of working with a debt consolidation company: you only have to make one monthly payment. Also, refinancing loans typically have lower interest rates. So with one monthly payment and lower interest rates, you can use debt consolidation to pay off your expenses faster.

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