Tip #1
Start with a list of your debts and set some repayment goals. Ask yourself how quickly you would like to eliminate your debt. Debt consolidation on its own doesn’t eliminate debt, it just transfers your balances to a new, hopefully lower interest rate, loan. This helps you pay off debt sooner.
– Scott Schaefer, Kitchener & Stratford Offices
Tip #2
Begin by taking advantage of any low-interest rate balance transfer programs offered by your credit card company. Know that there may be a limit on how many months the low interest rate will apply. Watch out for balance transfer fees that may eat up any potential interest savings.
– Howard Hayes, Cambridge & Brantford Offices
Tip #3
Work on improving your credit score before consolidating your credit to reduce your interest rate. Pay off smaller credit card balances completely, but keep the accounts open. This will lower your utilization rate, which is good for your credit rating. Cut up the cards so you are not tempted to drive up the balances again.
– Doug Hoyes, Co-founder
Tip #4
Don’t hesitate to contact existing credit card providers and ask them to lower your interest rate. If you have a reasonable credit score, you may qualify for one of their low-rate cards.
– Ted Michalos, Co-founder
Tip #5
Talk to your bank or credit union about a personal term loan. Term loans usually come with lower interest rates than most credit card rates. In exchange for this lower interest rate, know that you are committing to a fixed monthly debt payment.
– Jason Quinney, Brampton, North York and Vaughan Offices
