High Finance Rates, Debt Consolidation Canada
Extending high finance credit accounts is becoming more and more popular in Canada. As individuals find themselves in trouble with finances they’re searching for high finance corporations and borrowing funds at outrageous finance rates. A common high finance institution charges 28 – 32% interest. Generally most people dont understand that high finance loans take a lot longer to re-pay and let’s not ignore the total amount of interest that you do pay.
The average account with most of these companies will see you pay almost what you borrowed in interest. Here’s an example; you borrow $7,000 from these organization at 28% interest; the actual amount re-paid at the end of the term is aprox $13,077.00. As you can see you will be re-paying $6,077 in finance charges. What you will be re-paying just short of double what they lent you. Doesn’t make much sense does it.
With that said the high finance companies aren’t the only ones robbing you blind. Many department stores charge high interest rates on their lines of credit. The usually trick you into applying for a line of credit from their organization by propositioning all kinds of deals and price reductions on merchandise but basically they’re still ripping you off. The money they make off your line of credit more than offsets any discount they offer you at the store.
One of the reasons many Canadian’s research credit counselling in Canada is because they simply can’t maintain the finance rates charged by these institutions and the minimum payments hardly cover the finance rates. Realistically, your debt won’t actually get paid off and all you’re doing is padding the pockets of these institutions. My simple suggestion for anyone borrowing from high finance companies is read the fine print. Know what you’re getting into and look at the interest rates.
Greg Martin
Debt Manager
Phoenix Credit and Debt Counsellors
