At some point in their life, all Canadians take on debt to some extent. If you’re like most of us, debt repayments can be overwhelming without an action plan to tackle them.
You can have numerous payments each month, including:
- lines of credit,
- mortgage payments,
- car loans,
- credit cards, and many other monthly expenses.
Debt consolidation can help you with that.
What does it mean to consolidate your debt?
First, it’s important to answer the question “what is debt consolidation?” Debt consolidation is when you roll your high-interest debts, such as multiple credit card payments with various interest rates, into one single payment at one rate.
How can Cashco help you with debt consolidation?
One of the ways you can consolidate your debt is by getting a fixed-rate debt consolidation loan—that’s where Cashco comes in! You can apply for a Flex Loan to receive up to $7,000 and use that money to pay off all or some portion of your debts. You can then pay back one loan in installments over a set term.
What are the benefits of consolidating your debt?
Choosing to consolidate your debt has a few advantages that you can expect to see almost immediately:
- Pay less interest in the long run and get out of debt faster,
- Simplify your payments and planning,
- Know exactly when your debt will be repaid,
- Manage monthly cash flow knowing exactly how much that one payment is each month.
However, consolidating your debt only works if:
- The loan has a lower monthly payment than all your other debts put together. (Tip: you can put that extra money toward paying down your debt faster each month.)
- You avoid taking on more debt with the available credit you free up.
Is debt consolidation right for you?
Before getting on board with consolidating your debt, you need a clear understanding of your debt.
Find out if debt consolidation is the right choice for you by using this debt consolidation calculator.
What other steps can you take towards financial health?
A Flex Loan can help you make great progress to pay off debt, but it only truly works if you make a plan to tackle your debts and change any unhealthy spending habits you have.
We can help you with that too.
Our team is prepared to help you work through a budget and find the funds to build an emergency fund. These are small steps you can start taking today for a stronger financial future.
While on your path to a more financially healthy you, we recommend figuring out your current credit score and letting us help you build up that credit score. A higher credit score can qualify you for more loan opportunities, lower interest rates, and better loan terms in the future.