Consolidation Loan Canada debt payments at once can be stressful. Keeping them organized and on track is even more challenging when your living expenses are high. Debt consolidation can help rebalance your finances by bringing your debt down to a manageable number of payments at a lower interest rate. The process can also be a great way to rebuild your credit score with every on-time payment made.
A debt consolidation loan in Canada is an unsecured personal loan that you use to pay off your other unsecured loans and balances. You can apply online or in a branch with many lenders, including those who specialize in providing loans for bad credit. Your credit report will be used to qualify you for a loan, and your lender will decide on how much you can borrow and what loan term will be most affordable based on your income and debt profile.
Debt-Free North: Navigating Consolidation Loan Options in Canada
You can also consolidate debt by combining your existing debt payments into one payment. This type of debt relief is often cheaper than a loan because you’re not borrowing more money. Instead, you’re transferring your debt balances to an alternative lender that can negotiate with your creditors for lower interest rates. This is called a debt management program, and it’s available through non-profit credit counseling organizations like us.
You can compare debt consolidation options with our free online comparison tool. Toggle the settings to see how loan amounts, loan terms and payment frequencies affect your monthly debt repayment cost.