Debt Consolidation in Canada

 
Debt consolidation is taking out one loan to pay off several others. It is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.
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Consolidation of your debt is often advisable when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank.
 
 
Essentials of Consolidation
 
  • Lower Interest RateYour Debt Consolidation loan may have a lower interest rate than the rate you are paying on credit cards
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  • Extended terms
    With extended terms of a consolidation loan, you may be able to reduce your total monthly payments.
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  • One monthly payment
    In stead of having to make payments to several companies each month, you will now have only one monthly payment.
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  • Budgeting
    Many financial institutions will require you to make a monthly budget to see if you can meet your loan payments
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  • Source of Income
    The bank will need to know your source of income, bring your recent paystub, and your last year's tax return
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  • Security
    To satisfy prerequisites set up by the lending institution for debt refinancing, you may need a co-signor or collateral (such as a car or a house).

 

 
To determine if you qualify for a Debt Consolidation loan, contact your banker or finance company.
 
There are a number of companies that specialize in dealing with people in financial trouble and, especially, with bad credit.
 
Debt Consolidation by MoneyProblems