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Credit consolidation Edmonton is one of the options you have if you are looking for a way to get out of debt. One of the main types of debts people have is credit cards. The problem with credit cards is that the interest rates are often very high and this makes it difficult to pay them off. People will begin paying only the minimum balance due when they experience financial hardship, and this will not help the balance go down very quickly. For example, if you owe $5,000 on a credit card, the minimum balance that you must pay each month might be around $150. Of this amount, it is not unlikely for $120 of it to be interest. This means that every month you are paying only $30 off the balance even though you are paying $150. As you can see, this balance would be extremely hard to pay off. Choosing credit consolidation Edmonton can help people in situations like this. Imagine if you owed 10 different creditors and each added interest every month. You may not even be able to pay the minimum payments due and this could cause a lot of problems. Your creditors might raise your interest rates and they may add on late payments each month. Getting out of a situation like this is not easy to do without help. Credit consolidation is a great option in debt relief and it requires going to a professional for help. The professional that helps you is responsible for doing several things. The first thing is to analyze your financial situation. You will need to bring copies of all of your statements with you so that they can see how much you owe. The credit counselor will begin calling each of your creditors on your behalf. The goal of this is to ask each one to lower your interest rate. If you currently have a 20% interest rate on one account, the counselor may try to get the creditor to drop it to 0%. While this is not always successful, creditors will usually drop the rates to rates that are lower. In this example, the creditor may agree to drop it to 2%. Paying 2% is a lot better than paying 20%. Arrangements will also be made regarding how much each creditor wants to receive as a payment each month. After arrangements have been made with each creditor, the counselor will determine how you will repay this money. The counselor will add up all of the money you owe and all of the payments each creditor expects. This will end up becoming your new monthly payment amount. You will no longer have to make payments to 10 different creditors because of a credit consolidation Edmonton. You can make one payment and this will be divided up between all of the creditors. This is very nice for consumers because it makes it a lot easier. It is also nice though because this plan will take place for a set number of months. When the credit consolidation Edmonton is created, the counselor will tell you how long it will last. When the time frame has ended and you have made all of your scheduled payments, you should be debt free. You should no longer owe anyone money and this will be a great feeling. In most cases, a credit consolidation plan lasts for around 3 years, but it may be longer or shorter than this. As long as you make your payments, this is a guaranteed way for anyone to get rid of the debts that he or she has.
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