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Debt Consolidation Information

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Debt Consolidation Information

Residents in Ontario continue to borrow at record rates; the most recent statistics show household credit per person in Canada reached a record level of $40,207! That would mean that if you are carrying a household debt of $40,000 and attempted to pay it off at even 0% interest over 5 years, your payment would be $667 per/month.

Depending on the type of credit you have, the interest on the debts you are paying alone could double or triple the payment we estimated above.

  • If your monthly payments of debt are consuming 25% of your GROSS income.
  • If you cannot make your monthly payments.
  • If your wages are being garnished or your bank account is frozen.
  • If you are living pay cheque to pay cheque.
  • If you are fighting with your spouse about finances.
  • If you are paying off one credit card with another.
  • If you fall into any of the above categories, you NEED debt consulting.

Let’s review some common credit products that most Canadians own, the average interest rates, average minimum payments and monthly interest costs.

Credit Product Balance for this example Average interest rate Monthly Interest Cost Minimum Monthly Payment % of Payment Going to Interest # of months to pay off based on min paid
Major Credit Card $3,000.00 20% $49.98 $75.00 67% 120 months,10 Years
Store Card $3,000.00 29.99% $75.00 $75.00 100% Never
Line of Credit $5,000.00 6% $25.00 $50.00 50% 200 months,16.7 Years
Payday Loan $1,000.00 25% every 2 weeks $500 200% Never

 

Our Debt Programs

We leverage government programs that have been made available by the Federal Government to get your creditors to reduce and freeze interest on credit products, reduce balances and we offer you a single monthly payment. We stop the collection calls; we stop enforcement action. With DebtCare Canada on your side you can tackle your debt with dignity!

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