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  • Debt Consolidation

  • What is Debt Consolidation

    Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones. In effect, multiple debts are combined into a single, larger piece of debt, usually with more favorable payoff terms: a lower interest rate, lower monthly payment or both.

    Best Way to Consolidate Debt

    1. Keep balances low to avoid additional interest, and pay bills on time.
    2. It’s OK to have credit cards but manage them responsibly. This maintains a history of your credit report. …
    3. Avoid moving around debt with a credit consolidation loan. …
    4. Don’t open several new credit cards to increase your available credit.

    How can I consolidate my debt in Canada?

    To consolidate all of your debts, your first option would typically be to approach your bank or credit union and see if they can help you.

    1. Add the Debt to Your Mortgage. …
    2. Get a Debt Consolidation Loan. …
    3. See if Family Will Lend You Money. …
    4. Other Options. …
    5. Debt Management Program or Orderly Payment of Debts.

    Trying to consolidate debt with bad credit is not a great idea. If your credit rating is low, it’s hard to get a low-interest loan to consolidate debts, and while it might feel nice to have only one loan payment, debt consolidation with a high-interest loan can make your financial situation worse instead of better.
    Is consolidating debt a good idea?
    Whether consolidating your debt is a good idea depends on both your personal financial situation and on the type of debt consolidation being considered.Consolidating debt with a loan could reduce your monthly payments and provide near term relief, but a lengthier term could mean paying more in total interest.

    What to do next?
    Contact our Consultants to find out what would be is a better solution for your situation?
    1-Debt Consolidation
    2-Credit Counselling
    3=Consumer Proposal