The Basics of Canadian Debt Consolidation
There are a handful of different ways in which a Canadian is able to consolidate their debt. Each has its own pros and cons and what is right for you may not be the best solution for someone else. One of the most popular options for consolidation is by getting a debt consolidation loan. Speaking with a 4 Pillars debt consultant in Victoria is a great way to understand if this is the best option for you.
Understanding a Debt Consolidation Loan
When you choose to consolidate your debt with a consolidation loan, a credit union, bank, or finance company will loan you an amount of money that pays off your current debts. In turn, you end up with a larger loan, rather than a number of small loans. There are a few reasons this is helpful for many people, which we will explore below:
- Rather than having multiple debt payments each month, you will have only one to keep track of.
- When there are fees associated with this service, they are typically quite low.
- There will be a set time in which you pay payments before your debt is paid off.
- You may be able to qualify for a lower interest rate on consolidation, which will save you money.
Considering Loan Interest Rates
Each financial institution will have a different set of criteria to determine what the interest rate of your loan will be. A 4 Pillars debt consultant in Victoria will want to know your debts, your assets, your income, and other important financial information to determine if this is the right option for you to consider. Some institutions will also want to see security behind the loan, such as a vehicle, or other asset that can be liquidated if you do not pay your payments.
Qualifying for a Debt Consolidation Loan
Assuming you meet the credit score requirements and have enough income coming in, you are may qualify for a debt consolidation loan. You’ll also want to consider whether you can afford the monthly payments and whether you have a security for the loan, if required. Even if you don’t meet all of these qualifications, there’s nothing wrong with looking into your options.
At 4 Pillars, we will review all your options to deal with your debt and other methods to help you improve your credit. Experts like Chris Grew and Benjy Houser will assist you with getting your finances back on track. You can learn more about our services by visiting www.4PillarsDebtConsultants.ca.