- Make a list
Start by writing a comprehensive list of the debts you owe, as well as their interest rates. When you look at this list, set some repayment goals as you go.
- Look into low-interest rate balance transfer programs
If you owe credit card debt, it’s worth looking into whether your credit card company offers low-interest-rate balance transfer programs. If you go this route, be sure to note exactly how many months the lower interest rate applies.
- Focus on your credit score
Work on improving your credit score as much as possible before and during debt consolidation. When you have a better credit score, your interest rates may go down, making repayment a bit easier.
- Consider your home loan
Home loans often have much lower interest rates than other debts. Consider using your home equity to pay off your debts. Just be sure you can make your mortgage payments.
- Rein in spending
When it comes to the most straightforward tip for how to consolidate debt, it’s this: while you’re focusing on paying down debt, control your spending as much as possible!
The more money you don’t spend on non-essentials, the more you will have to contribute to your debts. It can be challenging to limit your spending, but it will help you reach your financial goals faster.
Do you think you might be overspending? Take a look at this post for six signs you are spending more than you should: 6 SIGNS YOU’RE OVERSPENDING…WHAT YOU CAN DO ABOUT IT!
- Professional debt consolidation services
If you owe money to many creditors, we encourage you to seek debt consolidation services in Edmonton. For most people, a single loan from one source with one interest rate and one payment date can be less stressful to handle.
Debt consolidation isn’t suitable for everyone, but it is an option worth considering. The Fox-Miles team will work closely with you to help you make the best choice for your debt solution, including bankruptcy and consumer proposals.
Contact us today for family-friendly, non-judgmental insolvency, bankruptcy, and credit counselling services to help you through difficult times.