September 18, 2008
Raised rates, Debt Consolidation Canada
loan accounts are becoming more and more popular in Canada. As individuals find themselves in trouble with finances they’re rely on high loan organizations and borrow funds at high finance rates. A common High finance organizations charges 28 – 32% interest. What most people don’t understand is that these types of loans take a considerable amount of time to re-pay and lets not forget the total amount of interest that you will pay.
The usual loan with these corporations will charge you close to what you borrowed as interest. For example; you borrow $7,000 from most of these establishment at 28% interest the total amount repaid when the contract expires would be $13,077.00. This means you will be repaying $6,077 in finance charges. This means will be repaying almost double what you financed. This really doesn’t make much sense.
Keeping that in mind the high finance corporations definately wont be the only ones charging you ridiculous amounts. Almost all the department stores charge outragous interest rates on their lines of credit. Often they suck you into obtaining a credit card from their establishment by propositioning all sorts of deals and discounts on products but basically they’re still making a killing on your account. The money they make with your credit card definately off sets any discount they give you at the store.
One of the reasons many individuals look for debt management in Canada is because they simply cannot keep up with the interest rates charged by these organizations and their minimum payments hardly cover the interest rates. Realistically , your debt doesn’t actually get paid off and all you are doing is padding the pockets of these organizations. My simple suggestion for anyone borrowing from high finance companies is read the fine print. Know what you’re getting into and look at the interest rates.
Phoenix Credit and Debt Counsellors
Debt Consolidation Canada
Tags: credit counselling canada, debt consolidation canada
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