Before you do, let's take a look at the pros and cons of each option.With a credit card consolidation loan, you work with a lender to combine all of your unsecured debt into one monthly payment.They also probably haven’t saved for all of the “unexpected events,” which will eventually become debt too.In other words, the good money habits for staying out of debt and building wealth aren’t there—their behavior hasn’t changed—so it’s extremely likely they will go right back into debt.Both put the control in your hands, which can be good or bad, depending on how disciplined you are.
You might pay down your debts through a balance transfer or interest rate negotiation.
But, if you are looking to have one convenient payment each month or to improve your monthly cash flow while still working toward being debt free, an RBC credit specialist can help. The current payment amount is based on the total monthly payment amount for all debts at the time of calculation, which could include interest-only payments for credit cards and lines of credit balances, and assumes that the debt is repaid in equal monthly installments for the specified comparison period, and depending on how much is paid toward the principal, could potentially have a balance at the end of the comparison period (may not be paid off in full).
Personal lending products offered by Royal Bank of Canada and are subject to credit approval.
The calculation assumes a constant interest rate throughout the amortization period and the total interest cost is averaged over the life of the loan rounded to the nearest dollar.
Your actual interest rate may vary depending on details provided in your credit application.