Thanks to Tara, Branch Manager for this article!
Many of us have debt in a number of different places. There's credit cards, store cards, car loans and lines of credit... And because each one has a different due date, minimum payment, and interest rate, it doesn't take long to feel like your debt is a little beyond your control.
Plus, you might find that while you're always making payments, your debt isn't actually going down. If you're feeling like your level of debt isn't where you want it to be, and you're committed to paying it down, a debt consolidation loan can be a great way to take back the control you're missing.
A debt consolidation loan allows you to combine different debts into one loan. So instead of making multiple payments, you're now just making one. Does this sound easier than what you're doing now? Well, it is.
A consolidation loan lets you easily manage your debt, and you're not just paying interest, you're also paying down the principal - this can put you on the path to eliminate it altogether.
How? Well to start, with your debt being in one place, you can easily keep track of your repayment progress and you're likely to reduce your overall interest costs.
Loan terms usually range from 1 to 5 years, so you can choose what works best for you. It's easy to customize your loan payments and your frequency to monthly or more often, so you can balance your ongoing cash flow needs with your goal of becoming debt free.
It's important to think about a consolidation loan as a replacement for your existing debt. So if you're serious about paying it down, a consolidation loan can be a great way to regain control of your money.
Visit the RBC Advice Centre for more information.
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