• Debt Relief Solutions for Canadians Who Love Credit Cards

    Canadians love owning credit cards. There are more or less 37 million debit cards and 72 million credit cards be used all over the country. The Credit Counseling Service of Toronto showed that it is not unusual for Canadians to own 8 to 10 cards having a debt credit of $30,000 or more. Based from the current statistics coming from Equifax Canada, the total outstanding credit card debt has already reached $78 billion in September 2009. It has an increase of $76 billion compared from September 2008.

    That is the reason why credit cards are the main reason of having personal bankruptcy in Canada. However, an increasing credit card debt does not require you to have a one on one meeting with a bankruptcy trustee. A debt management and credit counseling organization provide tested solutions in solving your credit card debt.

    Think of a consolidation. One of the most successful ways to lower your credit card debt is to search for no-interest options. Even if it unsafe to get an interest-free loan with your parents or close relatives to pay off your debt. It can be an option. If it is not a good decision, home equity loan can be an outstanding means to pay off the balance on your credit cards having a low interest rate. A line of credit coming from a homeowner is generally a bit higher in percentage compared with the prime rate. With that, you are paying off very low interest on the loan, which allow you to hit the principal. Yet, experts are separated on tapping into home equity to pay off the debt as a lot of individuals find there own selves indebted over what are the values of their homes having a poor economy.

    Transfer your balance. If you have several credit cards, you might need to think of a balance transfer. Initially, check on credit cards that have the most convenient payment conditions and have the lowest interest rate. The advantage is that when you hold similar amount of total debt, your interest is somehow be greatly low. Just keep in mind that there are lots of credit cards balance transfer fees. Thus, make sure to pick the card the offers the lowest penalties.

    Ask for an expert advice. There is an adversary that the consumer encounters during the time when they paying off their credit card debt which is their own self. If you hold a credit card balance, you must have to keep track on what you are spending with your money. Luckily, a credit counselor can assist you to be true with their financial situation and make a reasonable credit card relief plan that is not just done immediately but for a certain period of time.

    Try to negotiate. Credit card companies are not doing business to loose money. It is one cause why they are willing to lower your existing debt balance. Certainly, your debt negotiation success usually will depend on your present status with a credit card company. If you are not paying your bills, and if you have not made any minimum payment, then making negotiations is useless. Aside from that, a debt settlement generally gives short-term relief. Visiting your bank or calling will typically grant you a six-month gap and slightly lowers the percentage points. Therefore, be realistic with your expectations.

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    Article Created: 2011-02-09
    Article Updated: 2013-08-08

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