More Credit Card Debt Always the Wrong Answer

For many Canadians, debt is a reality of life. With the various monthly payments, along with those incidentals that spring up unannounced, debt can creep up quickly to the point that it becomes unmanageable. For some, amassing more credit card debt to cover such financial requirements sometimes seems like the only option – but it is almost always the wrong one.

Why is credit card debt so problematic? For one, the interest. Credit card companies are eager to extend credit because of that interest – it’s how they make their money. Secondly, the minimum monthly payments are so low – and mostly comprised of interest – that it can take years to actually pay off the debt. Have you ever looked at the statement to see how long it would take to pay off the total balance? Check it out – the number of years may just knock your socks off!

Furthermore, credit card companies are not lenient, and even a few missed payments can mean that high interest rate grows even higher!

Knowing these things, it’s obvious as to why racking up more credit card debt is never a smart solution.

So, what other options do you have? Especially for those with less than stellar credit, finding relief may be easier said than done. That being said, it isn’t impossible – you have options.

If you only have one or two credit cards, a consolidation with a vehicle may be a smart choice. For example, if you own a car that is paid-off, you have an asset with equity at your disposal. You may be able to borrow against that car and consolidate debt to make it far more manageable.

If you have several credit cards and a mountain of credit card debt, but also own a home with significant equity, a home equity personal loan may be just the thing. With a home equity personal loan, you can access some of that equity without the loan being registered against your home, only one homeowner has to sign, and there are no legal fees, appraisals to pay for or closing costs to cover.

Both of these options give you the ability to consolidate debt and get out of the vicious cycle that credit cards represent.

If you’re deep in debt, don’t turn to your credit cards for relief – they are a major part of the problem. Prudent Financial can help. We’ve got the financial expertise and the products that let you breathe a little easier.

Find out more by calling 1-888-852-7647 today.


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