7 Reasons to Consolidate Your Debt with GNE Mortgages

If you are riddled with debt from various sources like credit cards etc., then consolidating all your debt into a single easy-to-make payment is the best way to keep track of your debt and ensure you do not miss out on your repayments.

Debt consolidation makes your life simple. Instead of paying three or four debts every month, you will only have to worry about making one payment. The debt is still there, but it is a lot more efficient when you have to make only one payment.

Reasons to consolidate your debt:

1. One simple payment

A revolving payment can make your repayments unpredictable. With the help of debt consolidation, you know how much payment you will be making each month. You should consult with your mortgage agent regarding this.

2. Lower payments

It is not always about the interest rate. If you can reduce the amount you are spending on repaying debt, you will exactly know how much your payments are, and you can set the payment automatically to make your life stress-free.

3. You will exactly know the date your debt will be paid off

There is no payment end date for credit cards and lines of credit. You can continue making payments and even use the card on an ongoing basis. Unless you read the fine print, you may not realize how long it will take you to pay off only the minimum amount. Check the bottom of the credit card statement to find out how long it could take to pay off your balance if you only make the minimum monthly repayment. It may take decades.

4. Less likely to miss out on repayments

Have you wondered how many store accounts, credit cards and overdue bills you are making payments on? The more accounts you have, there is the chance that you can miss a payment, and you will be faced with rising interest rates and late payment fees. With a debt consolidation loan, you will have only one monthly payment which will make your life much simpler, and it can help you get out of debt and back on track financially soon.

5. No annual fees

Debt consolidation loans have no annual fees, unlike a credit card where you will be paying annual fees.

6. Improves your credit score

If your goal is to improve your credit score, then a debt consolidation loan can help you toward achieving that goal. Bear in mind, the more you owe will have a negative impact on your credit score. When you consolidate your debt, you have the opportunity to improve your credit standing.

7. Long-term aim

If clearing your debt is your top priority, the interest rate may not be the most crucial factor. Lower overall payments and a fixed loan term are some of the benefits of debt consolidation.

The team at GNE Mortgages encourages clients to think of debt consolidation as the beginning of a new chapter. If you fail to close unnecessary cards and make repayments, you could have a bigger debt load tomorrow. Please do not hesitate to get in touch with the team if you need help with debt consolidation in Mississauga.