Canada debt consolidation

How do we abtain so mucg debt? Why do the majority of Canadian's live with so much debt?. All of us have debt, this seems to be a normal way of life, but why is it that our debt at least equals or is greatger than what we can afford?

The answer is pretty simple. The creditors make it easy to obtain debt and this is how creditors become profitable. The worst part is that they hope for us to fall behind.

Everybody likes to get paid on time, but lending companies more often than not prefer the opposite. They want you to be late!

Now mind you your creditors don't encourage you to be too tardy or to default, but a week or two is just great. Let's just think what late payments on your account means to your creditors. You are still paying, but you are a few weeks late. Their late fee is thirty dollars. the credit card companies just made thirty dollars for doing absolutely nothing! You are already maxed out, so essentially the charge puts your account over your max. Essentially earning them an addition $30 for, again, what? Nothing!

At some point you are able to make your minimum payment of twenty dollars. basically this doesn't work in your favor. Let's just say that you have $15 in interest for the current payment period. Your total costs are; fifteen dollars in interest + $30 late charge + $30 over limit charge, which equals $75 charged to your account. You make a payment of $20 towards the account, essentially leaving you $55 worse than when you the reporting period began and basically have nothing to show for it.

This proves that credit cards are un-nessassary and we should learn to live without lending companies!

The first step in the plan to get ride of your credit cards is to gather up all of your credit cards and shred them. If you absolutely need a card save one, but get rid of the rest. Just pick the card with the lowest interest rates and preferably no annual fee. Put your card in a good spot that is not readaly accessible.

This sounds like a drastic move, but most people do not have the self control to essentially not use the account. Most people look at their credit card statement, see fifty dollars or $100 in available credit and see it as free money. There is nothing free in this world.

If you couldn't force yourself to destroying your credit cards, defiantely gather them all up and place them somewhere that would not be easy to get to. A safety deposit box is probably a great idea. Another solution is to have an individual that you trust hang onto them or hide them.

The key is not to have access to them for any un-nessasary purchases that individuals come across on a regular basis. As soon as we get past the moment, chances are that we will recognize that we don't need to make that purchase and probably will forget about it all together. We are now even closer to paying off our debt.

Don't forget to eliminate the credit cards that you dont want to use. Most accounts have an annual charge, which could be anywhere from thirty dollars to one hundred dollars. This is wasted money that you could possibly use towards the balance.

Some companies may charge you a fee to persuade you to stay with them. At this point you need to consider the impact. I recently cancelled a card that is charging $3.50 a month in closed account fees. Lets say your annual fee is $59, twelve months at $3.50 is forty two dollars. We're better off by seventeen dollars, or more, if you pay it off within 12 months. The most important thing to consider is that there is no way that I can use that credit card again and worsen this situation.

Now that the temptation is out of the way you can start paying them off. Keep in mind that you need to pay at least the monthly payment, pay all accounts on time, and stop using the accounts. Now step back and enjoy the road to financial freedom.