The Reality
Credit cards have been a part of our daily lives for a long time. In the age of technology, we might even say that a credit card is practically essential for most of us.
An Essential Requirement
There is rarely a day that goes by without the opportunity to use our credit card, whether it’s for making online purchases, making reservations, paying the tow truck when the car breaks down, or paying for our daily coffee.
We no longer even need to take the card out of the wallet. The account is linked to our smartphone or the very convenient autofill on our computer.
The Rude Awakening
One beautiful morning, we wake up with a significant balance, accumulated without us realizing it over time. We then decide to pay off our card.
The problem is that very often, we don’t have just one! We have several. What do we do then?
The Cost of Cards
Interest rates average around 22-25%, the minimum payment required is most often 5% of the balance of each card. Paying them off requires budgetary gymnastics. Economic columnists tell us to pay off those with the highest interest rates first. It’s a good suggestion. However, most financial institutions who issue credit cards have the same or comparable rates.
Mathematical Gymnastics
If the mathematical feats required are impossible, we must then look at what other options are available. Without a plan, paying only the minimum required balance will mean that you will be paying for the rest of your life.
To Conclude – Some Options
Debt consolidation is used to group the cards and pay them off by obtaining a loan from a financial institution with a lower interest rate. This loan will be granted provided that our credit rating is good and that our income is sufficient in the eyes of the lender. Otherwise, beware of high-interest loans!
A consumer proposal is very advantageous solution in many. This is a debt repayment plan proposed to creditors, which takes into account your ability to pay (according to your budget) and without interest. No credit check or endorser required, unlike what lenders may ask for.
Before choosing among all the possible solutions, why not consult a Licensed Insolvency Trustee who will examine the problem and offer the best solution. You will then be equipped with the tools to help you make the best decision.
It’s Never Too Late to Consult Us
We do more than just bankruptcies, and you can count on our Licensed Insolvency Trustees to provide you with impartial and independent advice. Do not hesitate to consult us.
Your future after debt, we imagine it!
For a future beyond debt, consult a trustee by visiting ginsberg-gingras.com or calling (800) 567-1905. The first consultation is in person or virtual and comes with no obligations.