Consolidating debt ontario
Debt consolidation is a sensible solution for consumers overwhelmed by credit card debt. Consolidation cuts costs by lowering the interest rate on debts and reducing monthly payments.
The loan is repaid in monthly installments at an interest rate you negotiate with the lender.
Debt consolidation is especially effective on high-interest debt such as credit cards.
It should reduce your monthly payment by lowering the interest rate on your bills, making it easier to pay off the debt.
Instead, the nonprofit credit counseling agencies work with card companies to reduce the interest rate and lower the monthly payment to an affordable level for the consumer.
The consumer sends a monthly payment to the credit counseling agency, which then distributes the money to each creditor in an agreed upon amount.