What is a Debt Consolidation Plan?
Debt consolidation is in essence, a loan. A bank or finance company will lend you enough money to pay off all your debt and even catch up on some bills like cable and rent. The loan will carry an interest rate and in most cases, at least when dealing with a bank, you will be required to provide a co-signer. Finance companies may not require a co-signer but the interest can be as high as 60% per annum.
If you’re feeling overwhelmed trying to keep track of multiple lenders debt consolidation may be an option right for you. While not a debt-relief solution (like bankruptcy or consumer proposals) debt consolidation can help you manage your debt easily while getting a head-start on repairing your credit rating.
Why Debt Consolidation?
- Simplify Multiple Lenders and Repayment Terms
- Negotiate Lower Interest Rates
- Rebuild Credit for a Financially Healthier Future
There are a variety of advantages and disadvantages to debt consolidation, dependent on your unique personal needs and financial situation. If you’re thinking about debt consolidation or other financial management solutions, contact us. We’re happy to provide free, no-obligation debt assessments to help you break free from debt today.
What If I Don’t Qualify For A Consolidation Loan?
If you have gone to your financial institution to apply for a consolidation loan and they have turned you down, a consumer proposal may be the next best step to help you break free from your debt. See our Consumer Proposal page for more information or contact us below.