If you’ve managed to accumulate a sizable debt, you’re not alone. Consumer debt is an enormous problem here in Canada and throughout the world. Fortunately, as people increase their financial literacy, they recognize that paying off their debts once and for all is the only way to truly get ahead financially.
Some people try to pay off their debts on their own and without help, but many individuals are choosing to take out a debt consolidation loan. Here at Sky Financial Corporation – The Mortgage Centre, we think a debt consolidation loan is the best way to eliminate your consumer debt for good. Why? Here are four huge benefits of taking out a debt consolidation loan.
- You have only one payment. When you’re trying to pay off several credit cards, medical bills, and other unsecured loans, you have a lot of different payment deadlines and a lot of different minimum payments. That’s a lot to keep track of, and it’s easy to let one slip. With a debt consolidation loan, you pool all of your debts into one and make one single payment each month. It’s a much more simple and convenient way to eradicate debt.
- You won’t have to deal with debt collectors’ calls. When you owe money, you’ll sometimes receive phone calls from collectors; this is especially the case if you’ve missed some payments. Worse, collectors will sometimes call your family members or your place of work in an attempt to talk to you. When you take out a debt consolidation loan, you get the nagging collectors off your back. You won’t have to deal with any more harassing, stressful, and embarrassing phone calls, and you won’t get a knot in the pit of your stomach every time your phone rings.
- You’ll pay less in interest. Credit card interest can be very high — as much as 20% APR or even more. But the interest on a debt consolidation loan is much lower. This lower interest rate can save you a substantial amount in the long term and help you pay off all of your debts sooner.
- You’ll improve your credit faster. Consolidating debts almost always means a faster payoff (thanks to the aforementioned lower interest rates). As a result, your credit score will increase much sooner, making you eligible for all sorts of consumer benefits, like a discount on your auto insurance and the best possible mortgage rates.
Get in touch with us at Sky Financial Corporation – The Mortgage Centre today to see if you qualify for a debt consolidation loan. And, as if the four benefits mentioned here weren’t enough, you’ll enjoy peace of mind knowing that you’re paying off what you owe and will soon be free from your financial stresses.