Consolidating loans canada
It’s sad to see so many Canadians struggling to manage their finances. By the end of this short guide, you’ll know more about debt consolidation than most Canadians.And when it comes to debt, things become really murky. I’ll answer the questions I hear all the time from 4 Pillars clients including: Debt consolidation involves taking out one big loan to pay off many small loans.Using your house as collateral in debt consolidation can help you negotiate a lower interest rate.With an asset on the table, banks will see you as a less risky investment which means you increase your bargaining power with lenders.Thousands of Canadians have used debt consolidation to reduce their debt.For those that can’t qualify for a consolidation loan as the debt load is simply unmanageable debt restructuring may be a better option.Debt consolidation is one of those terms that Canadians have a lot of confusion about. As the Government of Canada’s Office of Consumer Affairs (OCA) explains, “debt consolidation loan is a loan (usually from a bank) that lets you repay your debts to all your creditors at once.
David hadn’t considered a debt consolidation loan before, but left his branch feeling relieved with an affordable personal loan and greater control over his debt.
LEARN MORE David needed to get his truck ready for winter, but money was tight.
On the advice of a friend, he visited his local Fairstone branch.
Debt consolidation is a popular (and legal) way to significantly lower your debt in Canada.
In this guide, 20-year financial expert Paul Murphy takes you through the basics of why Canadians use debt consolidation.