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Credit card debt consolidation pointers

Nov 2

Posted by ArtQ in Finance | No Comments

Credit card debt in Canada is getting to be a wide scale issue for adults of any age.Don’t pry, but ask gently if any of your work colleagues carry a monthly balance.  You might be surprised.

Hard work and planning will get you out of debt.Making the first step is to understand what started your debt problem.Is your lifestyle unrealistic to what you earn?  Do you prioritise your monthly budget accordingly?

Being honest is the key.Debtors have to usually go with no credit cards at all for a while, but each one that has been through it values what they learn.

Consolidation Loan from your bank

Qualifying for a consolidation loan from the bank may be the easiest way to slow the interest down on your outstanding debts.  Your payments are also consolidated.  Cancel all but one of your cards though.Select a card for emergencies with the lowest interest rate.

Disqualified for a consolidation loan?

You need to get practical when you take on your debts for repayment.Cards with high interest rates need to be paid off in full first, or tackle the interest.

The interest can compound so fast, a lot of people only paying the minimum wont be done in their lifetime.  See if a lower interest rate card will allow you to do a balance transfer, then eliminate the empty balance credit card from your wallet.

Make additional payments

Work out a practical budget and stick to it.The creditors can be tough, so you have to deal with them accordingly.You need to shrug off the temptation to needlessly spend non vital things.The chances are high that if you don’t adjust your lifestyle, you are going to be in debt for the rest of your life.  Any additional payments you can make will go a long way.

Credit Counselling

Credit card debt consolidation can be done with the aid of a credit counselling agency.  These people can do a full financial budget with you and identify the areas where you are leaking cash.To assist in becomeing debt free and help in organisation, expect to be put on a Debt Managment Program or DMP.  This has all the benefits of a consolidation loan, but minus the loan.With a DMP, your only worry is the single consolidated payment each month. They will also see that your interest levels are reduced, if not frozen.Your principle debt is reduced, instead of payments going to the high interest.

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Canadian Dollar Catching Up With The American

Oct 6

Posted by ArtQ in Finance | No Comments

America have always been able to boast that their dollar was stronger than their cousins in Canada. Canada has never been able to keep up with the rapid growth of the American economy and whilst they certainly aren’t doing badly, they have always been overshadowed by their next door neighbours. However, as people going on Canada holidays may have noticed recently, with the recession in full flow, Canadian money in closing the gap and their economy looks to be more stable than in the States.

This is largely due to two factors. Firstly, the borrowing habits in America have traditionally been a lot less stable that those in Canada. Without getting into the strict economics of the situation, Americans have borrowed more money from banks than Canadians. This led to outwardly impressive levels of economy growth, but in reality meant that America had a huge deficit when it came to the amount of money they actually had, and the amount they owed. The American dollar was severely hurt as a result.

Secondly, the GNP of America is heavily reliant on the oil and industry sectors. These are two sectors that have been hit heavily in the credit crisis and have left record numbers of Americans out of work and whole towns even struggling to make ends meet. Industry has been affected mainly because demand has dropped for things like cars and other machinery, and oil has suffered due to dwindling resources and the ability of counties in the Far East being able to flood the market with cheap oil.

This is good news of course for Canadians who are planning to go on American holidays, as they their money will go further than it has done for a long while. However, if you are an American thinking about visiting Canada, it’s probably best to stick to Alaska holidays for now.

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