Debt Consolidation – Not a Dirty Word
Debt consolidation is the secret treasure of the debtors underworld.
When we’re going out into the world on our own, we don’t necessarily know all of the financial ‘tools’ that exist, and how their existence might help our monthly budgets.
For the most part, plenty of us live within the confines of a monthly budget, especially in Toronto. Our bills come and go, our rent or mortgage come and go. The clockwork rhythm of getting paid, and paying out, never seems to get any better.
Throughout the repetitions of this financial musical, we tend to accumulate debt. Whether it is for buying new furniture or upgrading our cell phone, these one-off expenses tend to be the type of expense we throw on a credit card or line of credit. With the balance being somewhat out of sight, out of mind, the balance grows.
Sure minimum payments are made in an effort to keep our monthly budget in check, but the balance doesn’t seem to shrink.
And with added expenses piled on before the prior are paid off, before you know it, we have ourselves a little bit of a debt snowball.
Once it starts, it packs a lot of momentum, and can be tough to stop.
Has Managing Debt Become Too Much?
If the mounting debt balance and interest charges are eating away at your actual eating budget, it is time to look for a fix.
If you have debt from multiple sources, or even a single, high interest source (like a retail credit card), you may want to inquire about debt consolidation in Toronto . Debt consolidation is what Morgix calls it when we roll all that debt into one big ball, and apply a lower interest rate to it.
In effect, a debt consolidation loan pays off your creditors, and as a result, you are left with a similar total balance, but with a more manageable interest rate, and therefore lower monthly payments.
We can also come to an agreement on the term of the debt consolidation loan. By extending the term, or the time it takes to pay down the loan, you can further impact your new positive cash flow per month.
Do I End Up Paying More in Interest with Debt Consolidation?
Not necessarily. Generally if you are rolling up the debt balances from very high interest credit cards, you will definitely be saving on interest over the short term, and the long term.
Where you might face a difference in the total lifetime interest charges of your arrangement, are if you choose a longer term at a close interest rate to the prior loan.
However, in the interest of your month-to-month finances, the short term value of ‘more cash each month’ far outweighs the inconsequential difference in lifetime interest paid.
Contact the loan specialists at Morgix for more information on debt consolidation in the Greater Toronto Area, and Southern Ontario!