Why are more & more consumers resorting to consolidation loans?

1. Why are more & more consumers resorting to consolidation loans? Are you having trouble meeting your financial obligations, whether it’s paying off your loans or paying your bills? If only there was a way to put it all together in one loan. But what is the procedure to follow the consolidation of your loans? And, is this a good idea given your situation? Here are the factors to consider when weighing the pros and cons of debt consolidation or loan consolidation. For those people based in Mississauga and Toronto expecting debt relief due to their credit card debts, it may be interesting to subscribe to a credit counseling service. Credit Counselling services offer them options for loan consolidation. It also helps to avoid bankruptcy, and when the file is set up on time, it allows you to repay your debts including credit card dues and other debts for a manageable and financially bearable amount. provided you have a stable job and sufficient resources, it is quite easy to be granted a consolidation loan by lending organizations. Here are some advantages: Only one payment must be made each month. Overall, the payments are lower. Thanks to the lower interest rate, more of your payments go to principal. Canadians used more loans in the second quarter, according to the latest study released by Statistics Canada. This increase in debt observed on the credit market has intensified recently, going from 0.5% to 1.6% during the second quarter. It should also be noted that mortgage debt stood at more than a trillion-dollar when the debt in the consumer credit market exceeded the hundreds of billion-dollar mark at the end of this quarter. Regarding the level of indebtedness, which is none other than the ratio of the household debt contracted on the credit market to disposable income, it was estimated at 163.4% in the second quarter. This is an increase from 162.1% recorded in the first quarter. This increase comes after two declines that were observed during the last two quarters. On the other hand, household net worth grew by around 0.7% in the second quarter. This increase is largely due to the 1.6% increase in the value of their real estate assets throughout this quarter. Is loans Consolidation An Adequate Solution To Your Debt Problems? If you find yourself sinking into a sea of debt, credit card dues, and monthly payments, loan consolidation can be a real

2. lifeline. It can help you simplify your finances by allowing you to make one lower monthly payment that will more easily fit into your monthly budget. However, for these benefits to materialize, your loan application must be accepted and you must be eligible for a lower interest rate than those applicable to your unconsolidated debt. It is also important to think twice before using loan consolidation as an expedient for bad financial habits. Some people give in to the temptation to re-apply for credit after consolidating loans and then apply for a new consolidation loan when they start to accumulate arrears. Anyone who sets out to consolidate their debt should have a strong will to control their debt in the future. Reach out to us for our credit counseling in Toronto for a long term vision to manage your debts wisely. If you need credit counseling for some period and are based out of Mississauga, we will be happy to assist.