Are you
too INDEBTED?

Used PRUDENTLY and frugally, credit helps you manage your
FINANCES.

 

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CREDIT

Used prudently and frugally, credit, in many cases, is necessary and even indispensable for the acquisition of durable goods such as furniture, a car, or a home.

 

On the hand, if misused, credit can quickly put you into serious indebtedness. Remember that credit does not replace money and in no case is it synonymous with wealth. In all cases, it must be repaid, with interest.

 

Even though it is too often granted with great ease, credit can offer significant advantages such as immediate use of products and services.

 

However, the choice of type of credit that you use can have a significant impact on the interest costs that are, literally, a waste of money. Below is a table on the costs for a debt of $10,000 according to the type of credit used:

Credit Card

Amount Due Interest Rate in % Monthly Payment Total Duration of the Loan $
Paid in Interest
         
10 000 $ 19,9 % Paiement minimum (2%) 75 ans 43 000 $

Line of Credit

Amount Due Interest Rate in % Monthly Payment Duration $
Paid in Interest
         
10 000 $ 4.25 % 250 $ 3 ans et 6 mois 800 $

Consolidation Loan

Amount Due Interest Rate in % Monthly Payment Duration $
Paid in Interest
         
10 000 $ 12 % 222,44 $ 5 ans 3 200 $

 

If you realize that your debt is not properly distributed, start by checking your “debt ratio” to determine whether you qualify for a consolidation loan or a line of credit. If you do qualify, it is in your best interest to consult with your financial institution to find out more about your options.

 

If your debt ratio exceeds 40%, it is in your best interest to consult with a financial professional.