Consilidating credit card debt

If you make sure to pay the balance on time every month and keep your credit utilization below 30%, you can restore your credit score faster than you might think.Fortunately, even borrowers with a history of bankruptcy, insolvency, or poor financial behaviour can choose from a number of secured or unsecured credit cards for bad credit in Canada.

The ability to switch out older, variable rate federal loans for one fixed rate loan, which could protect you from having to pay higher rates in the future if interest rates go up.

(Note: the last variable rate federal student loans were disbursed in 2006.

Answering these questions will go a long way to helping you make the right choice.

You may not be able to change the fact that you have student loans, but you can make smart decisions about them.

This is a somewhat complicated question, especially since these terms are sometimes used interchangeably. Federal loan consolidation Federal loan consolidation is offered by the government and is available for most types of federal loans—no private loans allowed.

For example, consolidation simply means combining multiple student loans into one loan, but you get different results by consolidating with the federal government vs. Student loan refinancing is when you apply for a loan under new terms and use that loan to pay off one or more existing student loans. When you consolidate with the government, your existing federal loans are combined into one new loan with a new rate, which is a weighted average of your old loans’ rates.

An unsecured credit card just means that you don’t need to provide a security deposit, and is the type of ‘normal’ credit card that most consumers are familiar with.

The secured and unsecured credit cards we recommend below permit you to build up your credit score even if you have bad credit.

However, the interest rate on your new, consolidated loan is not a weighted average of your old loans’ rates.

Instead, a private lender will look at your track record of handling debt and other financial information to give you a new (ideally lower) interest rate on your consolidation loan.

Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.

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