So far, inflation in Canada peaked at 8.1% in June, falling to 7.6% in July. Higher inflation is driving more and more Canadians to lean on credit cards, loans, and lines of credit to make ends meet. With higher interest rates comes higher debt servicing costs. Surveys show that even as Canadians spend less on luxuries, streaming channels, and clothes, while many are pushing off and cancelling vacations. Younger Canadians, those of the Millennial generation are accumulating the highest debts. In 2022, over 1 million Canadians reported being late on a mortgage or rent payment. Higher debt loads and more skipped or late payments increase risks for lenders, who have already increased interest rates on their debt products.
A private Tembo debt consolidation loan can hedge a borrower against higher rates and uncertainty. Our debt consolidation loans allow you to merge multiple debts into a single, simple, convenient transaction. Turn 5 monthly payments into one with a Tembo debt consolidation loan. Wipe out high interest credit card bills. Clear your line of credit. Take pressure off your credit score. And most importantly, save money by avoiding the higher rates the big banks and lenders are going to go ahead with when the Bank of Canada raises rates again. The financial press are almost unanimously expecting another 50 to 75 basis point rate hike by the U.S. Fed and the Bank of Canada in September.
In Quebec, financial regulators have now pushed up the minimum monthly credit card payments borrowers have to make. Minimum payment amounts will increase in 2023 from 3.5 to 4.5% by 2023. Reports from Equifax show that the volume of new credit card issuance increased by over 31.2% in Q1 2022 from Q1 2021 and the latest monthly credit card spending data shows increases of over 17.5%. A Tembo private debt consolidation loan can put your high credit card balance out of your mind. Higher interest rates on lines of credit from higher prime bank rates can also be avoided. Rising interest costs can add hundreds of dollars to your annual expenses.
Through a Tembo Financial debt consolidation loan, you have the option of accessing an easy, quick, and cost-effective service to free up cash flow and improve your credit score by combining different high interest debts into one simple payment. Take advantage of your increased housing equity to consolidate your debts, pay down liabilities fast, and simplify your payments – please visit https://www.tembofinancial.com/services/debt-consolidation/and give us a call at 1-844-238-6717!