Debt in its various forms has, for many of us, become an inherent part of our everyday lives. Homes, cars, or education may be the cause of your debt. As a small business accounting firm in Hamilton, Profit Financial Services, has great experience with debt consolidation. We emphasize that borrowing money is not the problem; it becomes an issue when you borrow beyond your means.
About debt consolidation
Debt consolidation is a method of reducing your debt and in the process, saving you money and time. Qualified financial experts from our company help our clients easily manage cash flow and reduce any debt they may have. This is achieved by:
• Consolidating various loans
• Lines of credit
• Credit card balances
• One loan and determined repayment schedule
By consolidating debt, our accounting firm will also help you save on interest costs and enable you to settle your debt, faster!
Methods of debt consolidation
By employing an accounting company like Profit financial Services to manage your debt, you will have peace of mind knowing that the right financing options are utilized to meet your specific needs. Our financial experts will design a solution that will help you decrease or discharge your outstanding debt.
Having the best personalized financial strategy, prepared by Profit Financial Services, enables you to improve your cash flow and reduce your debt much sooner. This is a crucial aspect of debt management, whether your finances are in a healthy state, or you are confronted with various challenges.
Personalized debt consolidation plan
A debt consolidation plan may involve consolidating your debt into an unsecured loan, whereby your total outstanding debts are combined into one loan, but at a determined interest rate. This is designed to reduce your overall interest payments, as well as improving your cash flow. You will probably be advised to take advantage of an instalment loan facility, as this will ensure your debt is discharged over an agreed term, thereby minimizing your interest costs.
Should you require the availability of an ongoing credit facility, for particular purposes, the opening of a separate, unsecured line of credit may be a considered option. Revolving credit available to you by way of a line of credit can also be employed as an effective debt management tool, under qualified advisement of course. This method can be used to manage your cash flow needs, providing you have the capacity to make regular repayments beyond the minimum sum.
Financial assessment and planning
Highly qualified financial advisors can prepare an assessment of your current financial assets and liabilities, to help you determine a future plan. It will be based on:
• Strategies for debt reduction, founded on your personal circumstances
• How you can increase cash flow
• Reducing your monthly debt payments
• Practical and relevant financial advice
Part of your financial assessment should be to decide on your goal regarding reducing, or eliminating your debt and making a plan to achieve it. These decisions will be influenced by the key benefits offered to you by debt consolidation. Here are the benefits:
1. Lowering monthly payments has a significant advantage when consolidating your debts. In addition, it is possible for you to obtain a reduced overall interest rate than that related to the combined rates on your total debts. You could also extend your repayment term to further reduce the monthly payment.
2. You can save on credit card interest by consolidating your present
outstanding credit card balances into a loan with a lower interest rate. This could reduce your interest costs significantly, depending on the rates charged by your credit card providers.
3 You have the option for further savings, by leveraging the equity in your
home. Utilizing your home as collateral for a loan may make it possible to negotiate a reduction in the interest rate in respect of your outstanding debt and even extending the term for repayment.
4. The consolidation of your debts provides you with the opportunity to make your finances less complicated, by having only a single monthly payment. There is also the advantage of having your debt centralized with one financial institution.
Your style of financial management
If given the opportunity, Profit Financial Services, will discuss personal style of management with, regarding selecting a credit solution designed to meet your personal needs. Various aspects will also be taken into consideration, including a disciplined budget program that will portion out available money for determined expenses.
There are many options proposed by a variety of financial sources, some of which include “buy now and pay later” offers. If you are experiencing a debt crisis, then offers such as these can be tempting. Many people fall into the trap of borrowing to pay outstanding debts.
With the help and guidance of experienced financial experts from Profit Financial Services, you can rest assured that your debt consolidation is in good hands. You will also receive the advantage of being protected from additional costs, which could be significant.