Consolidation Loan Canada – How to Get a Debt Consolidation Loan

Handling multiple debts takes a toll on your finances and can lead to stress and anxiety. One way to ease these burdens is through debt consolidation. A consolidation loan is a secured loan that pays off your existing debts and allows you to make just one monthly payment. It also helps to build credit with each on-time payment you make.Resource:

You can find several online lenders that offer debt consolidation loans in Canada. Some, like goPeer and Mogo, are peer-to-peer lending platforms that connect you with other Canadians who are willing to lend you money at a rate you both agree on. Others, such as Lendful and LoanConnect, are credit broker websites that maintain a large database of lenders that can finance you based on your unique financial profile.

Debt Consolidation in the Great White North: What You Need to Know

Many of these companies offer unsecured debt consolidation loans. Unsecured loans are not secured by an asset like your home or car, so they can be more difficult to obtain than a secured loan. However, with an acceptable credit score, adequate income, and a cosigner or guarantor you can still qualify for the best debt consolidation loans in Canada.

Beware of high-interest rates on these loans. Lenders use your credit scores and payment history to assess your risk so if you have poor credit or have had problems paying your debt in the past this will be a red flag for most lenders. You may end up with high-interest rates or even be denied altogether if you are not a good credit risk.