Start Consolidating your loans good idea

Consolidating your loans good idea

Student loan consolidation is being offered as the quick and easy solution to all student debt-related problems.

In this article, I’m going to explain in very simple terms the basics of debt consolidation.

You’ll need a good to excellent credit score — above 690 — to qualify for most cards.

Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.

Since this is bringing multiple debts together and combining them into one loan, this is referred to as “consolidating” them. In reality, it’s actually technically impossible to combine loans and merge them together.

Each loan has its own interest rate and repayment terms.

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 $20,000, it becomes very hard to pay down the interest.

According to Statistics Canada, the ratio of household credit market debt to adjusted disposable income crept up to 166.9 percent in the third quarter, up from 166.4 percent in the second quarter.