Archives for June 2017


Debt Consolidation Solutions in Halifax, NS

There are different consolidation solutions in Halifax, Nova Scotia that help borrowers relieve their debt burden and make monthly payments more affordable and more manageable. If you have multiple balances or high-interest loans, you can check with the big banks, credit counselling agencies, and other providers in your area.

The Big Banks

Big Canadian Banks such as the CIBC, RBC, and others offer debt consolidation solutions such as balance transfer cards, home equity lines of credit, and personal loans. A personal loan is one option to look into if you want to make fixed payments. Many banks allow their customers to choose from different repayment schedules, including monthly, semi-monthly, and bi-weekly. A personal line of credit is a second option to consolidate existing balances and draw on the line multiple times and at any time. As an added benefit, borrowers pay interest only on the amount they withdraw. A home equity line of credit is yet another solution to consolidate debt if you are willing to pledge your equity as a loan guarantee. Again, customers benefit from the fact that they make interest-only payments on the amount withdrawn. As an added benefit, the interest rate is lower compared to unsecured loans. A balance transfer card is a fourth option that can be used to combine multiple outstanding balances and make a single payment. This option is beneficial if you hold multiple cards that go with higher-than-average interest rates. Banks usually feature attractive rates on balance transfer cards during a promotional period which can be as long as 12 consecutive months. Some banks even feature products with a zero rate while others advertise cards with very low rates and add-ons such as concierge service, rewards points, rebates, car rental discounts, comprehensive insurance, priority access at airports, and plenty more. You can check with some of the big banks to find a card with zero interest. MBNA, for example, offers such a card with zero interest on balance transfers during the first year, along with added benefits such as no annual fee and platinum services. Other providers offer cards with a 1.99 promotional rate, including American Express and the Royal Bank of Canada.

Credit Counseling Agencies

This is another solution to piling debt that will also help you learn how to budget and stay out of debt in the long run. Agencies represent and work on behalf of borrowers to negotiate with loan providers. Some charge fees while others operate as non-for-profits. If you choose this option, keep in mind that credit counseling will appear on your credit report. It is a good alternative if you are about to declare bankruptcy, however.

Rebuilding Credit

To rebuild credit, you can apply for a small loan but make sure you pay it on time. A credit card with a competitive rate and a small limit is also an option. If you have poor credit, you may want to use a secured card because it is easy to qualify for.  Avoid missed or late payments because they will show on your report. Paying bills in a timely manner also helps rebuild credit.

How to Stay Out of Debt

It is important to discuss money issues with your partner, create a budget, set limits, and stick to it. If that helps, you can make shopping lists. Finally, it pays to maintain a very good or excellent score to have access to low-cost products with exclusive benefits. If you find it harder to stay out of debt, you may want to stick to cash and try master debt management skills at the same time.