Inflation and rising interest rates have contributed greatly to increasing the level of indebtedness of Quebecers.
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This increase in the cost of living has caused many households to change the way they use credit and often use a credit card.
When a person finds themselves carrying outstanding balances on several credit cards, the interest rates on these, often at an annual rate of 20 to 23%, can cause debt to quickly pile up.
Now is the time to think about consolidating your debts.
Be careful, though, that you don’t wait until it’s too late before thinking about debt consolidation.
“If we wait too late and your credit rating isn’t good, you won’t get approved for debt consolidation,” warns Julian Brault, co-founder and CEO of HardBacon.
Line of credit and mortgage lines of credit, with their typically low interest rates, remain an option for debt consolidation.
But with their balance transfer promotions, sometimes offering 0% interest for several months, some credit cards are an attractive alternative.
“The idea is that if we can pay lower fees, lower interest, we can pay back the loan more quickly,” Mr. Brault explained.
Here are 5 great credit cards for balance transfers:
1. Scotia Visa Minimum
This card is interesting because of the special offer that is currently running.
Balance transfers have an interest rate of 0% for the first six months and no annual fee for the first year.
After the special offer ends, the interest rate will increase to 12.99% and an annual fee of $29 will be charged.
2. CIBC Visa Option
With a welcome offer of 0% interest for up to 10 months, but with a 1% transfer fee, this card could be attractive to those hoping to pay off their debts in a short period of time.
Then the interest rate increases to 13.99%.
This card’s welcome offer also includes reimbursement of the $29 annual fee for the first year.
3. BMO Preferred Rate MasterCard
This credit card also comes with an attractive welcome offer.
The interest rate for balance transfers is 0.99% for 9 months, but a 2% transfer fee applies.
The $20 annual fee is also refundable the first year.
4. BMO Cash Back MasterCard
The card’s welcome offer is also attractive as it offers an interest rate of 0.99% on balance transfers for nine months with a 2% balance transfer fee.
However, the interest rate will drop to 20.99% at the end of the promotion, so make sure to pay off your balance early.
Note that there is no annual fee for this credit card.
5. Flexi Visa Desjardins
This credit card is a good choice for people who already know that it will take them more than a year to repay their debts, because its typical rate is very low, 10.9%.
The card also has no annual fee.
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