/ Finance 101

Empower yourself as a borrower

Our Lending Specialists get it: figuring out your finances can be overwhelming. Fortunately, there are solutions like debt consolidation that can help you reduce and pay down your overall debt, relieve your stress and get your finances back on track.

In this article, two Fairstone Lending Specialists explain how debt consolidation can empower borrowers of any age to manage debt and improve their credit.

Benefits of debt consolidation

With over 11 years of experience at Fairstone, Jeremy Hopfner, Branch Manager in Calgary, Alberta, has seen many customers tackle financial challenges through debt consolidation.

“When we work with a customer to consolidate debt, what we’re doing is restructuring their debts into one loan with one monthly payment,” Jeremy explains. “It’s a great part of my job when I get to sit down with a customer and show them how debt consolidation can help them save money and relieve financial stress in their daily lives.”

Jeremy and his team of Lending Specialists generally see an improvement in how customers manage their debt after they consolidate with a loan. “It gives them room to pay down their debt faster or have extra money for personal use. Any time we can help simplify their financial situation while saving them money on their monthly payments, it’s really a big win for our customers and our team.”

A debt consolidation loan can help make money management easy at any stage of life."

Consolidating at different stages of life

Amy Langford, Branch Manager in Sarnia, Ontario, has been with Fairstone for 10 years and finds debt consolidation can mean different things for different people. “It really depends on what stage of life you’re in and what your goals are,” Amy says. “Are you looking to minimize monthly expenses, or to be debt free at a certain age? Your goals will determine the kind of consolidation loan you need.”

Whether you’re entering the workforce for the first time or preparing to retire in a few years, debt consolidation can be the right step toward reaching your financial goals.

Why consolidate as a young adult?

As you graduate from school and begin your career, Amy typically finds the biggest financial challenge is managing “new credit,” like higher credit card limits and new lines of credit. Not only might you be paying for things like your first car or education costs, but it can also be easy to misuse new credit on things like online shopping and everyday luxuries.

“Using credit cards and lines of credit can be very easy and add up quickly. A consolidation loan bundles these debts together with the goal of combining multiple account balances into one payment. Not only can this help build or restore credit after graduating school, but it can also help establish smart financial behaviours early on in life.”

Why consolidate when you’re mid-career?

When you’re in your 30s, 40s or 50s, you may find the constant costs of home and car repairs, and possibly the expenses of having children, a lot to handle. Our Lending Specialist Amy finds people in this age group are usually looking to reduce the number of their monthly payments and create more disposable cash. “This stage of life is the most expensive; you need to be prepared for anything life throws at you. And not only do you need instant results to pay off debt, you’re also looking to build stability for the future.”

Amy recommends consolidating with our personal loan for homeowners at this stage, which utilizes the equity in your home so you can get access to a larger amount at a lower interest rate.

Why consolidate before retirement?

As you’re getting ready to retire, you may have more immediate goals to fulfill.

“At this stage people tend to ask themselves where they want to be in five years. To travel and be debt-free are the most common goals we hear, but if you haven’t been saving until now this may be difficult,” says Amy. “Another consideration is retirement income; when you retire your pension income could be significantly less than your earnings today. What we’d recommend is a short-term consolidation loan to help you get rid of outstanding debts and help you achieve your retirement goals.”

Consolidate now

Whatever life stage you’re in now, it’s important to plan for a solid financial future. Getting stuck in cycles of debt can be detrimental to your day-to-day budget as well as your long-term financial goals, and can negatively impact your credit score. A debt consolidation loan can help make money management easy at any stage of life. If you’re feeling overwhelmed by multiple bills or are looking for a solution to growing credit card debt, a customized debt consolidation loan from Fairstone may be the answer. Apply online or visit your branch and speak to a Fairstone Lending Specialist today.

This article is for informational purposes only. For personalized financial advice, you should contact a qualified financial advisor.

You might also be interested in

/ Finance 101

4 Factors affecting financial wellbeing

Finances are one of the top causes of stress among both men and women. When you feel financially secure, you are more likely to feel that you can enjoy life and worry less about what the future holds financially. On the other hand, financial insecurity can cause stress that affects all aspects of your life, from your personal life to your overall health and wellbeing.

/ Finance 101

How to improve your credit score during the pandemic

A credit score shows lenders how you manage your finances and how likely you are to pay back your debts on time. Having a high credit score can help you access favourable interest rates on loans and other credit products, which can reduce borrowing costs. We’ve teamed up with Smarter Loans to teach Canadians how to improve their credit amidst the ongoing pandemic.