A debt consolidation loan can help you manage multiple debts by combining them into one lump sum payment with a single interest rate. These loans are available through a variety of sources and can be used for a wide range of purposes. However, not all lenders are willing to offer debt consolidation options for those with bad credit. Fortunately, there are some lenders that specialize in this type of financing and can help you find the right option to suit your needs.Read more:alpinecredits.ca
What is Debt Consolidation?
The goal of debt consolidation is to reduce your monthly payments, lower your interest rates, and eliminate high-interest debts such as credit card bills. Typically, this is done by obtaining a new loan that pays off all of your existing debts, leaving you with one easy-to-manage payment each month. The type of debt you can consolidate can vary from unsecured credit cards and personal loans to secured mortgages and auto loans.
How to Get a Debt Consolidation Loan in Canada
The key to getting a debt consolidation loan is showing that you can pay off your current debts with your new, consolidated payment. Lenders will look at your credit rating and your income to determine risk and approve or deny the loan. If you have bad credit, you may need to offer up security or a co-signer in order to secure a debt consolidation loan.
In the Finder: Consumer Sentiment Survey Q2, 17% of Canadians say that they are planning to get a debt consolidation loan this year. If you’re ready to take control of your debt, speak with a certified credit counselor for more information on the different debt relief solutions available to you in Canada.