Thanks for the feedback…if there are ever any other topics you that would like to hear more about please let me know.

Tom

Thank-you for your comments.

Debt Consolidation has regrettably become a quick fix for many individuals (though, the unfortunate truth is that in some cases people think that it’s their only option and don’t realize that repeated debt consolidation requests can take away all of the equity they may have in their home and/or leave them in a position where they have become “addicted” to debt).

I acknowledge that there are certain merits to the debt consolidation process if done properly; for example, you could be eliminating credit facilities that are charging exorbitant rates of interest; however, what often happens is debt that was intended to be paid off in a couple of years is extended out over a much longer period of time (and even though you’re paying a lower rate of interest, you’ll be paying interest for a much longer period of time). One suggestion for people completing a mortgage refinance is to keep their amortization period the same, rather than extending it; though the payments will be a little higher you’ll be debt free by the time you had originally planned to be.

Clients considering debt consolidation need to be educated on the merits AND the perils of the process…even though, a debt consolidation can give someone the impression that they’ve managed the problem, the reality is that is you can’t borrow your way out of debt. The true solution is to get control of your finances and this often requires sacrifice.
A recent article posted by The Globe and Mail has stated that the growth in consumer credit debt in Canada is no longer outpacing income, and is rising at its slowest pace in a decade…the link is listed below (hopefully, people are beginning to realize the consequences that can come along with overspending):

http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/canadians-get-the-message-on-debt/article2097194/

At the end of the day watching what you spend is extremely important, but to achieve long-term security and peace of mind you also need to ensure that you’re saving.

We really appreciate your feedback…thanks again

Tom