Inflation and high interest rates have contributed significantly to Quebec’s level of indebtedness.
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This rising cost of living has caused many families to change the way they use credit, and use a credit card more often.
When a person finds themselves with an outstanding balance on several credit cards, the interest rates on those cards, often at an annual rate of 20 to 23%, can cause the debt to grow rapidly.
It is then time to consider consolidating your debts.
Be warned, however, that you should not wait until it is too late before considering debt consolidation.
“If we wait too late and your credit rating is no longer good, you won’t be approved for debt consolidation,” warns Julien Brault, co-founder and CEO of Hardbacon.
A line of credit and a home mortgage line of credit, with generally lower interest rates, remains a preferred option for debt consolidation.
But with balance transfer promotions, which sometimes offer 0% interest for several months, some credit cards can be an attractive alternative.
“The idea is if we can pay lower fees and lower interest, we can pay off the debt more quickly,” explains Mr. Brault.
Here are 5 great balance transfer credit cards:
1. Minimum Scotia Visa
This card is interesting because of the special offer currently in effect.
The balance transfer rate is 0% for the first six months and there is no annual fee for the first year.
Once the special is over, the interest rate increases to 12.99% and an annual fee of $29 is charged.
2. Choose a CIBC visa
With a bienvenue that permet d’obtenir a taux d’interet de 0% pendant un maximum de 10 mois, no frais de virement de 1%, this carte peut être intéressante for ceux qui pensent rembourser leurs dettes en moins d’ year.
Then the interest rate rises to 13.99%.
This card’s welcome offer also includes a refund of the $29 annual fee for the first year.
3. BMO’s Preferred Rate MasterCard
This credit card also comes with an attractive welcome offer.
The balance transfer rate is 0.99% for 9 months, but a 2% transfer fee applies.
The $20 annual fee is also paid in the first year.
4. BMO MasterCard Cashback Card
The welcome offer of this card also makes it attractive as it offers an interest rate of 0.99% on balance transfers for nine months, with a balance transfer fee of 2%.
However, be sure to pay off your balance quickly, as the interest rate drops to 20.99% at the end of the promotion.
Please note that this credit card does not have an annual fee.
5. Desjardins flexible visa
This credit card can be a good option for people who already know that it will take more than a year to pay off their debt since its regular rate is among the lowest, at 10.9%.
There is no annual fee on the card.
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