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.