CAMERON ASKED: I was just wondering if I could consolidate credit cards and a line of credit as one payment?
ANSWER: There are a couple of ways to consolidate your credit card debts and line of credit into one monthly payment.
You could talk to your bank about getting a consolidation loan.
The goal of getting a consolidation loan is to lump all of your high interest debt into a low interest loan that you can pay back over time. Consolidation loans are an attractive debt settlement option because they don’t harm your credit rating.
However, there are a number of issues with consolidation loans, as they:
Can be difficult to qualify for
Are not always a complete solution since the banks can be reluctant to lend you enough money to consolidate all of your debts
Often involve loan payments that are still unaffordable
Another way to consolidate your credit cards and line of credit into one payment is to file a consumer proposal.
Filing a consumer proposal is a formal action under the Bankruptcy and Insolvency Act, filed with a licensed trustee in bankruptcy.
When you make a consumer proposal you are able to:
Stop interest charges
Prevent creditors from taking collection action
Compromise your total debt
Consumer proposals are an excellent option for people who can afford to pay something to their creditors, but can’t afford to pay all of their debts with interest.
A good place to start is with our debt options calculator that estimates how much your payments might be with various debt settlement options.
At Welker & Associates Inc. we understand that the stress of dealing with personal debt problems can affect your whole family. We can help you resolve your personal debt.
We have offices across Ontario – contact us today to get a fresh financial start!
