17.07.2022 - 11:06

How does debt consolidation work in Canada?


How does debt consolidation work in Canada?

Answers (1)
  • Margie
    April 9, 2023 в 16:56
    Debt consolidation works in Canada by allowing consumers to combine multiple debts into one loan with a lower interest rate. This loan is usually obtained from a bank or a financial institution. The lower interest rate makes it easier for the consumer to pay off the debt because they are paying less in interest charges. Additionally, debt consolidation often extends the repayment period which reduces the monthly payment amount. This helps the consumer to manage their finances better as they only have to pay one debt instead of multiple debts. It's important to note that debt consolidation only addresses the symptoms of debt, not the root cause. Consumers still need to address the underlying issues that led to the accumulation of debt, such as overspending or a lack of financial planning, in order to avoid falling back into debt in the future.
Do you know the answer?

Leave a comment

Not sure about the answer?
Find the right answer to the question How does debt consolidation work in Canada? by subject Social-sciences, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.
Search for other answers
New questions in the category: Social-sciences

Password generation