Debt Consolidation Loan Canada – How to Apply For a Debt Consolidation Loan

Debt Consolidation Loan Canada – How to Apply For a Debt Consolidation Loan

Consolidation Loan Canada

A debt consolidation loan is an alternative to credit counselling that combines multiple small debts into one large, single payment. You can usually use it to pay off high-interest debt such as credit card balances, payday loans or finance company debt. However, a secured debt like mortgages and auto loans cannot be consolidated using this method.Learn more :

Navigating the Canadian Debt Consolidation Process Step by Step

There are a few lenders that offer debt consolidation loans in Canada. These include SkyCap Financial, a lender that does not focus on just your credit score and instead looks at a variety of factors to approve applications. goPeer is another online lender that allows you to borrow up to $35,000 to consolidate your debts. Their interest rates are typically lower than what you might find with traditional banks.

You can also look for personal loans offered by banks such as TD, BMO, and Scotiabank that you can use to consolidate your debts. Alternatively, you could consider converting your unsecured debt into secured debt using collateral such as your home. This option is more risky and requires careful budgeting to ensure you don’t default on your new debts. Finally, if you’re in serious debt, options such as consumer proposals and even bankruptcy might be better options to help you get back on track with your financial goals.

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