Credit Card Consolidation: When You’re Tired Of Juggling

Who knows…perhaps it happened without you realizing it. Offers for new credit cards came in the mail and you shrugged and took the offers and before you know it, you have several balances with varying balances and credit card consolidation is the only option you have to keep up with this cycle.

If this is happening to you, you’re not alone, thousands of Canadians turn to credit card consolidation each year when they get tired of trying to manage all their outstanding balances and just want to focus on getting out of debt.

Now there are both pros and cons to credit card consolidation and we’ll cover those now.

Let’s get the cons over with first.

The cons of credit card consolidation is that it can potentially lead to even more debt than you started with and be even harder to get out the second time. How so? Well, when you receive a consolidation loan, your credit balances, which have been looming for some time are now gone.

You could potentially find yourself in a very tempting situation to use up that credit. If you do fall into the temptation of re-maxing out your credit card, and it’s happened to many Canadians, you now find yourself having to repay the same debt, PLUS your consolidation loan.

That is the main pitfall to watch out for with consolidation loans.

Now, the pros. The first pro is that consolidation loans are great for your mental health (which is something you should guard carefully). Knowing exactly where you stand as well as knowing that you only have to direct one payment each month and everything is taken care of is fantastic for peace of mind.

Credit card consolidation can also save you money. With all the various rates you’re paying elsewhere, you can now enjoy one rate that can be cheaper than the one you’re paying on your most expensive cards.

And that also brings us to not having your credit rating at risk. When you have too many debts, even if you’re responsible and have every intention of paying the money you owe, you can still wind up in a situation where you accidentally miss a payment.

When that happens, your credit rating takes a hit and even if it wasn’t your intention to miss that payment, it will linger and haunt you. We don’t want that.

At LoanAway, one of the leading reasons Canadians come to us for loans is specifically to get credit card consolidation and put nagging debts far behind them. We offer affordable interest rates and you can take up to 36 months to repay your loan.

We know that this can be a big decision and if you need to speak to one of our loan specialists, they would be happy to take your call and provide you with a complimentary consultation and discuss your best options with you.

We can be reached Monday to Friday, toll-free, at (866) 689-0091.