If you are currently juggling credit payments against household expenses, a debt consolidation loan may help reduce the stress that comes with balancing multiple regular payments. Debt consolidation options come in many shapes and sizes, however, and some can offer additional benefits beyond reducing your interest rates (like debt forgiveness).
In guaranteed consolidation loans canada, you take out a new personal loan with the purpose of paying off several existing debts and then pay off your creditors promptly with a single monthly payment. Typically the new personal loan is secured with an asset, like your home, which makes it easier to obtain a debt consolidation loan when you have a blemished credit rating. Ideally the new loan will have a lower rate than your outstanding debts and you should be able to afford the loan in addition to other regular monthly expenses.
Financial Freedom Awaits: The Benefits of Guaranteed Consolidation Loans in Canada
There are a variety of lenders in Canada that offer debt consolidation loans, and their eligibility requirements will vary. For example, some lenders only want to work with Canadians who have a decent credit rating and a steady source of income. Others are more open-minded and will prioritize factors such as income level and employment over a specific credit score.
The unsecured debt consolidation loans offered by Lendful and gopher are examples of these open-minded lenders that provide loans to Canadians who otherwise wouldn’t qualify for conventional bank financing. Additionally, some online lenders are only available in specific provinces. Licensed insolvency trustees can also help with other forms of debt relief, such as consumer proposals and debt settlements, which can provide financial relief without the need for a new loan.