Consolidating credit cards canada
But like all powerful tools, credit cards must be used wisely.If you aren’t disciplined with your credit card spending, and you don’t pay off your balance in full every month, you’ll incur interest charges.The second benefit to debt consolidation is that you can usually put your debts together on a single, lower interest product.Most credit cards have interest rates in the range of 19.99%, but if you transfer your debt to a line of credit, a low-interest credit card, balance transfer credit card or a HELOC, the interest rate you’ll pay on your debt could be as low as 0%. This calculator is designed to help determine if debt consolidation is right for you.Fill in your loan amounts, credit card or credit line balances and other outstanding debt.
This strategy is called credit card debt consolidation, and it’s a good option if your ultimate goal is credit card debt freedom.While debt consolidation can be a great way to get out of debt quicker, it does have one drawback.The drawback is that you may be tempted to continue to overspend on your original higher interest credit cards – running up your debt even more.You can avoid this temptation by lowering your credit limits on your other credit cards after you transfer the balances.If you’ve been struggling to pay off your credit card every month, and you think that consolidating your credit card debt is a good strategy, here’s how to do it correctly.
Over half of all Canadians carry consumer debt, according to a Global News poll, with the average Canadian owing $8,539.