by admin | Bankruptcy, Consumer Proposal, Uncategorized
What is Consolidation?
Debt consolidation is essentially a technique that enables you to pay all of your withstanding debts through one single loan on lower interest rates and monthly payments. But before considering it your very last resort, make sure you are assessing all your options sensibly.
Thoroughly examine;
• Your outstanding balance
• Interest rates and
• Monthly payment modes
Benefits of Debt Consolidation
It is the ideal way to let yourself take a breath to regain your financial conscious and take control of your financial accumulations. In addition, debt consolidation provides a window of opportunity when it comes to saving money and enriching credit score.
Makes budgeting easier: Before debt consolidation, you had to make budgets for all of your expenses separately and then plan to pay the most important ones first. That seemed time-consuming and left you in between numbers all day. But with debt consolidation, things become easier when it comes to budgeting wisely as you only have to rely on a single budget for everything.
Lowers your Interest Rate: Debt consolidation works on the principle of accruing all your preceding multiple debts into a single loan. This way, a loan with comparatively lesser interest rates than individual ones, can be paid on monthly basis. This helps in saving a sufficient amount of money on monthly interest rates and overcoming debts much quicker.
Single payment method: This ends the terrors of multiple payment deadlines. All you have to do is make a single payment monthly. Monthly payments under debt consolidation are much smaller which gives you ample time to pay off all your loans through a single payment.
Collection calls dilemma: When individuals are in huge piles of debts, creditors pass on their accounts to collection agencies. This is when the nightmares begin. You start receiving several calls a day, constantly reminding you of your unpaid debt leaving you stressed out and worried. A debt collection loan frees you from such torments.
Overcome Credit Card Debt: A credit card is much the same as carrying your bank in your wallet but comes with high interest overheads in return.
Overcoming credit cards interest rates sometimes as high as 29% can make anyone break a sweat. Debt consolidation provides means to pay high interest debts credit cards reducing the load of outstanding balances.
Reduces stress levels: An amazing perk of debt consolidation is the decline in stress levels. Debt is considered to be one of the most crucial factors in stress increase globally. A constant reminder of due able debt keeps you on the edge of the bridge, making it impossible to enjoy other things. Debt consolidation will keep you focused on what’s important and releases the nerve-racking pressure on debts on your soul.
To conclude, financial matters require serious thinking. Keep in mind that debt consolidation is one suitable way of paying off debts but not always the best. Therefore, it would be wiser to consult any credit counselor or www.gtacredit.com– before reaching a conclusion.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
How heavenly would it seem if all our bills were paid on time and loans and money borrowing went out of the equation? Sounds ideal, yet of course hypothetical, at the same time. Financial troubles often come with ringing warning bells. Spotting them early with a proactive approach will always minimize repercussions later.
Lack of a planned budget: Ask yourself, have you ever ordered food in a fancy restaurant without looking at the menu? “No, never, why would I?” must be your top answer.
This is exactly why you need to plan a monthly budget wisely. Budgets are like gate keepers; they keep hold of your spending and navigate your financials accordingly. It is a way of seeing forward by staying in the present. It is wise to plan in advance so you have a better idea of how much you need to spend and how much to save up. Start by making a priority list. Identify the regular and irregular, or emergency expenses. That way, eventually, you will be able to eliminate financial worries later on.
Relying on Pay day Loans: A financial nightmare takes root the moment you start relying on pay day loans for your payments.
These short-term loans may help you in your desperate times, but they always come with a major catch. With higher interest rates, these loans will create hurdles for you in the future. Opting for loans from banks or using credit cards, is a much safer way to counter financial needs in the longer run.
Little to no emergency savings: Save for a rainy day! This is the first thing every parent teaches a child when teaching money value. If you listened, good for you; if you didn’t, pity.
You are on the road to financial disaster, if you are out of your emergency savings or worst, you have no savings at all. Emergencies don’t come with signboards. Remember that! One can’t simply ignore the costs for medical or automobile troubles when they come. Borrowing loans will only be a burden with added costs of interests. Saving up for them should be the first priority in life.
Not only that, make sure you are saving up for your retirement too.
Routine expenses via Credit card: Frequent use of credit card for day-to-day expenses is not any ideal way if you want to avoid financial bumps. It will ultimately result in higher interest rates which you obviously must be aware of, causing you to fall behind on money for the future when you need it.
Making Minimum Payments: It may seem at times that paying minimum payments is no payments at all. But don’t stop. Making small payments will save you from collection companies suffocating you with phones calls and bankrupting you. Don’t rely on what the bill statement says; try to pay as much as you can, when you can.
The bottom line
If reading this article made you think harder about your financial situation, then surely you need to start making wiser choices. It would be advisable to sit down and start visualizing your options to cut down on the unnecessary baggage and save more money.
by admin | Consumer Proposal, Credit Counseling, Uncategorized
Believe us when we say that you alone are capable of changing your life. You are solely responsible for what happens to you, so you can either choose to turn your life around by changing your attitude towards it or simply sit around and whine about your situation. The same stands true when it comes to your finances.
Simple steps at adopting a frugal lifestyle can help you overcome a grim financial situation and maybe even save you from having to declare bankruptcy. Cultivate the following habits and watch yourself turn into a thrifty person.
Be Proactive
Being proactive means taking charge of your situation; there isn’t much that you can do about what has happened already but you can control your response to it. Having a positive attitude is the first step towards change. Take a deeper look into your budgets, spending, and income to figure out where your money goes and where you can improve your budgets.
Envision Your Ultimate Goal
Your being proactive is bound to be wasted if you do not have a clear vision of what you want, in this case, to have a frugal lifestyle. Having a vivid idea of what you want to achieve helps you stay focused on your goal. Whether you aim at living debt free or building a savings account, you will eventually be taking steps that cut down on your over-spending.
Learn to Prioritize
Certain things in life matter more than others; it is always easier to focus on goals when you know why you’re working your way towards them. Remind yourself of the things that are of most value to you, put them first and you will see yourself planning and managing your efforts around them. So if you are saving for your daughter’s college tuition, you would do whatever you can to acquire/save up the amount.
Think of Mutual Benefits
While growing up, we are typically taught that life is a competition. While it might be true in some cases, it is mostly having an abundance mentality that helps you realize that you don’t need to snatch the things you need. Work out your situations in a way that they present a win-win situation for all. Frugal living might prove to be difficult as you watch your friend ‘having it all’ and you having to live on a budget. Do not wallow; just remind yourself that actual wealth is measured not in monetary possessions but in assets, and you need to focus on that. Trust us when we say that this habit will make your life a lot easier.
Although adopting a thrifty lifestyle requires patience, sacrifice, and a lot of guts, it is nonetheless quite achievable and fruitful. Your finances can flourish overtime as you settle in on a frugal way of life. However if you still need counsel related to your financial troubles, contact GTA Credit Solutions Services LTD.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
By far the smartest way to avoid going bankrupt is to save. It is sad, that most people do not realize the importance of savings. It is an art that not only helps you maintain a healthy financial position but also aids you when the situation resembles more of a crisis. For most of you, saving becomes a hassle as you do not have a direction or guideline as to what and where you can save your money. If that is the case with you, follow the simple tips listed below that will allow you to save effectively and efficiently.
1. Set Goals for Saving
Like every other thing, saving also needs motivation. Decide what you are saving for; whether it’s that sports car you have always wanted, or the homely diner you always wanted to own, it could even be a dream vacation or simply buying a house in five years time. Set a target and then work out how much you need to save every month to achieve it.
2. Set Aside Your Savings First
As soon as you receive your paycheck, set your intended savings aside no matter how big or small the amount is. If you fear you would sway at it if given an option, set up an auto debit from your pay account to your savings account. That way you would not cheat yourself out of a good long term savings.
3. Create an Interest-Bearing Account
Keeping your savings and checking accounts separate reduces the chances of you borrowing out of your savings from time to time. For long term savings, explore options of investing into products that will yield higher returns for you.
4. Save on Utilities
Save on your utility bills where you can. Lowering down your water heater thermostat can help you lower down your monthly energy costs. Opt for tankless water heaters instead of the conventional storage tank water heaters to further reduce your utility spending.
5. ‘Staycation’ Instead of Vacation
Everybody needs a vacation. It’s only fair that you take a break every now and then fly off to your dream destination spending a fortune. The idea is to take a break and while you are saving, a better option would be to look for fun vacation spots close to your home-it will cost you far less than an overseas vacation.
6. Take Home Packed Lunch
One of the most convenient ways to save is to save a little every day. If you buy lunch at work every day, it surely costs more than it would to take home-made lunch along. For example, if you save $4 on an average, you can create a good fund amounting to $1000 by the end of the year.
Simply put you can end up saving a valuable amount given you implement these basic habits into your life and making an effort to save.
by admin | Consumer Proposal, Credit Counseling, Uncategorized
A credit score matters a bit too much when it is your financial standing that is being evaluated. Thus it is important for you to know where you stand, and what can be done about improving your position. For this purpose alone, you should know how to obtain and evaluate your credit report and calculate your credit score.
An excellent credit score can land you financial products and services with the best terms and conditions-whether it is insurance policies or mortgage loans. The mere difference of a fair and good credit can either save or cost you thousands of dollars. Therefore, it is always a good idea to improve your credit score. Here’s how you can do that.
Don’t Apply For Credit That You Do Not Need
First things first, do not apply for unnecessary loans and credit. A large number of credit applications on your recent credit history make you look hungry for money. Greed never did anyone good, and neither will it do you any. More credit means lower credit score.
Do Not Delay Your Bills
Your payment history for monthly and utility bills counts. It is a major aspect in determining your credit score. Make sure you do not delay the payment of bills, because doing so will only take toll on your already fast declining credit score.
Keep a Long Credit History
A well maintained, responsibly paid off, long credit history is a plus point for you. When you show an impressive credit history when applying for a loan, it will boost your score and help you attain the best possible terms for acquiring your desired financial product or service.
Maintain Low Debt Balances
This is important. No matter how much you are tempted to spend, do not exhaust the limits of your credit cards. When you reach closer to the credit limit available to you, it alerts authorities and results in deteriorated credit score. Aim at keeping your debt balances lower than 50% of your credit limit. Even better, if you can manage it, try and keep it below 30% of your credit limit.
Have a Variety of Credit
Keep revolving your credit resources. It is not wise to keep all your credit in the same category. Mixing up different types of debts like mortgages, car loans, credit cards and RRSP loans can strengthen your credit history. It helps by giving off the impression that you are capable of managing various credit conditions efficiently.
Following the simple steps mentioned above can bring drastic improvements to your credit score. It may take a while though before results start to materialize. Remember, the key to better financial products and services is to improve your credit score and maintain it. If you feel your credit score is way too out of hands, visit the experts at GTA Credit Solutions Services Ltd. for expert counsel.
by admin | Consumer Proposal, Credit Counseling, Uncategorized
An increasing number of people are ending up deep in debt nowadays; most of them do not realize that it is possible to actually improve their financial standing and debt payment schedule. Simply put, some effective planning and modest lifestyle changes can help avoid you having to declare bankruptcy.
One of these minor lifestyle changes includes living on a creative budget. Now the word budget might appear daunting for most, but it can help you out of your debts and get back on your feet. It is aimed at making you learn how to save more and spend less. Listed down below are money-saving tricks that will enable you to reverse your debt problem.
Spend Less on Entertainment
Living on a budget requires sacrifices, the first of them would have to be the entertainment. Most people tend to spend a lot on eating out, movies, spa treatments, personal grooming, etc.
While personal grooming is something we do not want to discourage you from, most of these can be worked out using simpler, less expensive alternatives. For example, instead of going out for movies, you can rent one from online library; for a spa treatment that you have once every four weeks, try delaying it to once every six weeks; instead of eating out too often, stay home for dinner or choose less expensive meals if you do have to eat out.
Avoid Unnecessary Spending
Save on gas wherever you can. Plan your routes and errands well and cut down on the use of gas by avoiding multiple trips. Also, you can walk or cycle for short distances wherever possible.
If you have a skill, trade it for the services you require instead of a monetary value. Offer to babysit your hairstylist friend’s children in return for a nice haircut. Walk or hike instead of signing up for pricey gym or Pilate sessions, you can also stay fit using the instructional workout routine videos available online.
Cut Down on Monthly Bills
Monthly bills and payments can add up to a significant amount; look for the best insurance plans, services and utilities to make sure you are not spending more than you should be for a particular service. Cut down or downgrade the services you do not need in order to save further money.
Sell Off What You Don’t Need
Clothing, furniture, home décor – look around your house and you will find various things that you neither use nor need. Such stuff sitting in your house useless means you have cash tied up in unnecessary things. Sell them. Not only will it earn you cash that could be used to pay off your next debt installment, but will also help de-clutter your home.
Incorporating these simple, yet creative habits in your life can help you adopt a debt-free lifestyle and enable you to maintain it too. If however you wish to get expert advice for your debt situation, get in touch with the personnel at GTA Credit Solution Services Ltd.
