Debt Consolidation Loans Canada

Compare The Best Rates To Discover Whether Debt Consolidation Is Right For You

Do you want to know how to get a debt consolidation loan? You’re not the only one who feels that way. Debt consolidation is a method of reducing your debt into one simple payment.

Today, many of us are overspending due to our current circumstances. With student loans, credit cards, job changes, house and vehicle maintenance expenses, and other factors it’s easy to get caught up in debt. The higher the amount of debt you accumulate, the more likely you are to spend money on interest payments only rather than decreasing your real debt. Debt consolidation can help you pay off more of your obligations at once.

What Is Debt Consolidation?

A debt consolidation loan is a method of paying off your debts. When someone has been approved for a debt consolidation loan from a bank, credit union, or finance company, it’s used to combine several debts into one. You will be left with just one monthly payment and an interest rate set by the lender.

The most popular uses for debt consolidation loans are to pay off unsecured, high-interest obligations like credit cards and payday loans. It’s possible to locate a lender who will include secured debt, such as a mortgage or automobile loan, but these sorts of liabilities have very low-interest rates, therefore it wouldn’t be worth it to include them in a Canadian debt consolidation loan.

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How Does Debt Consolidation Work?

A debt consolidation program aims to combine your qualified debts into a lower monthly payment. On your behalf, the credit counsellor you engage with will negotiate with your creditors and lenders to minimize interest rates and/or avoid any penalties that you may have incurred or be incurring.  This way, you can continue to meet all of your essential needs while working toward debt freedom.

In most situations, individuals who choose debt consolidation can pay off their debts faster and save money on interest payments while still making manageable monthly payments.

Advantages Of Debt Consolidation

To secure a lower interest rate, you may leverage your assets (such as a home) by borrowing against them.

You safeguard your credit score.

Your lender will pay your debts in full promptly as a result of the arrangement.

You'll only have to make one monthly payment to your lender, instead of many different payments to various lenders.

You'll save money on interest, which will help you get out of debt faster.

Your credit score should not be negatively affected as long as you follow the terms of your consolidation loan and pay on time.

Disadvantages Of Debt Consolidation

A debt consolidation program is not compulsory, and as a result it isn't legally enforceable. This implies that your creditors have the option to opt-out at any time.

You will not be able to open any new lines of credit or apply for new credit cards, and doing so might damage your program's success.

If a few of your creditors opt out and you don't pay off your debt in full. You won't have any protection from your creditors, and they can still send collection agencies after you.

It may take up to two months for your debt consolidation to be completed and your debts cleared. You must continue paying any outstanding bills until the consolidation takes effect.

Is a Debt Consolidation Loan the Right Solution for Me?

Debt consolidation loans are not for everyone. If you have no intention of changing your financial habits, can’t pay the monthly installments, or have filed for bankruptcy, debt consolidation will not be your best option. To discover whether debt consolidation is the best solution for you, take a look at the current high-interest, unsecured debt interest rates that you are paying.

You should make sure that the debt consolidation loan has a lower interest rate than your present outstanding debt bills. After that, determine whether the debt consolidation loan quantity is adequate to pay off all of your unsecured, high-interest debts at once. Otherwise, you’ll still have numerous debts and stress. To ensure that debt consolidation is most beneficial and successful for you, avoid overspending on credit cards that have previously been paid off.

Frequently Asked Questions

Whatever you would like! Many of our customers use loans for paying off bills, consolidating debt, or even to purchase a new vehicle. A personal loan gives you the ability to use the funds for whatever you need, when you need it. 

That depends on who the lender is, whether the loan is secured or unsecured, and a variety of other factors. Usually, lenders like to stay between 12-60 months for unsecured personal loans. So when you know what you qualify for you will get to choose a repayment term that makes the most sense for you!

Our aim is to provide the easiest and most seamless way for our clients to get the funds they need. Lenders have to follow certain procedures before giving out loans. By connecting your online banking they can easily confirm your identity, your income, and provide you a loan quicker. If you don’t connect your bank you will need to gather all of these documents, send them in, and then wait for someone to manually review the documents. 

This is also lender dependant, but most lenders allow you to repay the loan early without penalty. 

The Bottom Line

Consolidation loans are one of the most beneficial tools for Canadians wanting to get out of debt. Debt consolidation can help you save money on interest payments, simplify all of your monthly payments into one easy payment, and lower your monthly bill so that it’s easier to breathe and control your finances. Even small amounts of debt that have high interest rates might build up to become significant debts over time. You may feel relieved knowing that your debt will be decreased faster and with less interest and smaller monthly payments, allowing you to build up your savings.

Debt consolidation loans are not for everyone. If you have no intention of changing your financial habits, can’t pay the monthly installments, or have filed for bankruptcy, debt consolidation is not an efficient choice for you to consider. However, if you’re ready to get out of debt and start over, this is an excellent choice. A single consolidated monthly payment would be simpler to manage both mentally and financially.

Apply Now! Start Planning Your Future Today!

You shouldn’t have to put your future plans on hold. We provide loan choices that allow you to get out of debt right now, giving you more time and money to do the things you love. We offer a wide range of loan choices to fit any financial situation, regardless of credit score. We’ll work with you to evaluate your finances and select the best loan option for you. We put you first to ensure that you get the most out of your lending option. Compare rates with us to maximize your savings. Apply Now!