More Than Finances

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Your Family Deserves Your Full Investment: Lower Your Family Debt and Give Them a Better Future

Most of us know the harrowing statistics about credit card debt. The average Canadian owes over $22,000 in non-mortgage debt, and much of that debt is credit cards.

Most people can comfortably pay off less than $10,000 in debt, if the moneylenders give them enough time to do so. That’s often a very big “if.” Credit card debt above $10,000 is almost impossible to retire without making extreme sacrifices, and that is a difficult thing to do when so much money simply goes to interest payments.

In both these situations, it’s usually best to consolidate multiple debts, like credit cards, with debt help counseling.

How It Works

It is almost impossible to consolidate credit card debt on a piecemeal, individual basis. For one thing, most people do not have several hours to sit on hold or participate in an endless email thread; for another thing, there is no guarantee that the person you are speaking with has the authority to reduce payments or interest rates.

On the other hand, when a debt consolidation specialist reaches out to a moneylender, good things happen. A trained debt counsellor knows what to say and how to say it, typically because a debt consolidation firm has a pre-existing relationship with most moneylenders that’s been successful in the past. Moreover, when a debt consolidator represents several families, the results are even better. These results often include:

  • Reduced interest rate,
  • Waived late fees, and
  • A hold on adverse action, like collections calls and even civil lawsuits.

As a result, the debt is paid off faster because more money goes to principal reduction each month and there is much less debt-related stress.

There’s more. Teaming up with a debt consolidation specialist gives you access to professional credit and budget counselling, which helps you understand why these obligations grew so much in the first place. Since it empowers you with healthy money management habits, debt consolidation sets you up for future success.

Better Than the Alternatives

Regardless of what you do or do not do, the credit card bills are not going away. And debt consolidation is a much better alternative than some other approaches.

Paying full price and full term is simply not smart money management. It’s very important to teach your children to be good stewards of their money, and the best way to do that is to set a positive example. Debt consolidation is a great opportunity to do just that.

Bankruptcy usually is not a very good alternative for credit card debt either. This avenue is really best for people who have issues with mortgage debt and other secured debts, because the possible adverse action (namely foreclosure) is so much worse. Using bankruptcy to deal with credit card debt is not quite like using a flamethrower to kill a housefly, but it is rather close. Bankruptcy also does nothing to restore your credit rating, and paying off credit card debts usually has the opposite effect, even with a debt consolidation loan.

The longer you delay this decision, the more interest you pay, so make the call to a debt consolidation specialist straightaway.

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