Find the Right Debt Consolidation Option for You
Are you stressed and struggling to keep up with all of your debt payments? Would consolidating your payments into one monthly payment make it easier? There are many different types of debt consolidation options to choose from in Canada. Below we provide a brief overview of each option, and then we let you know where you can find free, expert advice to help you with your situation.
Jump to a section in this debt consolidation series:
Locations We Serve Across Canada
Getting help from us is as easy as giving us a call or chatting with us online. We know that it can be hard to ask for help with your debts, so we do everything we can to answer your call quickly, provide you with the information you are looking for and book you a free credit counselling appointment if that’s what you need.
Our appointments are either in-person, in one of our offices, or over the phone; whatever is easier for you. The appointment doesn’t cost you anything, it’s completely confidential and without obligation. Our goal is to provide you with expert advice about your debts so that you can resolve your situation successfully.
Common Debts People Are Looking to Consolidate
Reasons Why People Consolidate Debt
There are many reasons why people want to consolidate their debts:
- Living expenses have gone up and now they can’t make monthly payments on all of their debts.
- High interest credit card debt is eating into their budget, they want to pay off these cards but they’ve been turned down for a bank loan.
- Have been keeping themselves afloat using a line of credit or bank overdraft for paying debts.
- Unable to refinance their mortgage to consolidate debts like they have in the past.
- An accumulation of payday loans due to debt problems, lost or reduced income or unaffordable car loan payments.
If you’re stressed and having trouble paying your debts, get help sooner than later. You’ll not only have more options and solutions available to you, it will ease your stress and you may even sleep better (we find this is true with more than 60% of the people that we help).
Debt Consolidation Loan
What is a Debt Consolidation Loan?
A debt consolidation loan is when someone borrows money and then uses that money to pay off other debts. You may want to apply for a consolidation loan if you’re struggling to make your minimum monthly payments on your credit cards, line of credit or overdraft. Or, it might make sense to consolidate high interest rate debts into one monthly payment with a lower interest rate. However, if your credit rating has gone down because of your debts, you may have difficulty applying for a loan. In this case one of our Credit Counsellors can help you look at other debt consolidation options.
Home Equity to Consolidate Debts - Refinance Your Home or Get a Second Mortgage
What does it Mean to Use the Equity in Your Home to Pay Off Your Debts?
Home equity is what’s left when you subtract what you owe on your house from what it’s worth. Some people think of home equity as how much they’ve paid off on their mortgage. Depending on how much equity you have in your home, you might be able to borrow against it and use the cash you get to pay off debt. There are mortgage rules in Canada about using your home equity to consolidate debt.
Before you increase your mortgage to deal with your debts, take out a second mortgage at a higher interest rate, or apply for a home equity loan, talk to one of our experienced Credit Counsellors. There are likely other options you may want to consider as well. To learn more about using home equity to consolidate debts, click here.
Line of Credit or Bank Overdraft to Consolidate Debts
Dangers of Using Your Line of Credit or Overdraft to Consolidate Debts
It can be tempting to use your line of credit or bank account overdraft to consolidate your debts into one monthly payment. However, by doing that, you run the risk of never paying your debt off.
Rather than using credit that never really has to be paid off to consolidate your debts, our experienced Credit Counsellors will help you look at all of your options. Having a loan or repayment plan with one monthly payment that fits your budget will let you pay all of your debts off and get you back on track with your finances. To learn more about the pros and cons of consolidating debt with a line or credit or overdraft, click here.
Debt Consolidation Using Credit Card
Does it Make Sense to Use a Low Interest Credit Card to Pay off other Debts?
Credit cards can be easy to get into trouble with because after you make a payment, unless you’re maxed out, you can use your credit card again. Low interest credit cards are no exception. Before you apply for a low rate credit card to consolidate other debts, make a free, confidential appointment with one of our Credit Counsellors and look at other debt consolidation options. To learn more about consolidating debt with credit cards, click here.
Get Out of Debt With a Debt Management Program
How does a Debt Management Program Get You out of Debt?
A Debt Management Program (DMP) is a way of consolidating your unsecured debts without borrowing more money. It allows you to get out of debt by making one monthly payment that fits your budget. To find out if a DMP is a good debt consolidation option for you, one of our Credit Counsellors would be happy to look at your situation with you. If a DMP is a good option for you, they will explain how it will consolidate your debts into one consolidated credit payment, how the interest rate is lowered or waived by your creditors and how we will help you successfully complete your Debt Management Program. To learn more about consolidating debt payments with a Debt Management Program, click here.
Use a Debt Settlement to Become Debt Free
How do Debt Settlements Provide Debt Relief?
To “settle your debts” means to offer your creditors a one-time lump sum payment to pay off part of what you owe them. In return, they will write off what you aren’t able to pay back. It is important to speak with one of our Debt Settlement Specialists to find out if signing a debt settlement agreement with your creditors is a good option for you. There are long term consequences to your credit rating when you have debt written off against you. Get all the facts before you sign. To find out more of the pros and cons of consolidating debt using debt settlement services, click here.
File a Consumer Proposal - Talk to a Bankruptcy Trustee
How Does a Consumer Proposal Consolidate Debt?
A legal type of debt consolidation is available in Canada through a Bankruptcy Trustee. Depending on the type of debts you have and your overall circumstances, filing a Consumer Proposal may be a good option for you.
Speak with one of our qualified Credit Counsellors to determine if you should also speak with a Bankruptcy Trustee. We’ll help you prepare your budget and the information you need for your appointment ahead of time. To learn more about using Consumer Proposals as a debt consolidation tool, click here.
Borrow Money From Family and Friends
What to do if Friends and Family are Willing to Help
No one likes to see their friends or family struggling with debt. However, borrowing money from a family member or friend to repay your debts can make it difficult later on if you have trouble paying them back what your borrowed.
Rather than jeopardizing your relationship with your family and friends, speak with one of our experienced Credit Counsellors to get the help you need to deal with your debts. To learn more about consolidating debt by borrowing from friends or family, click here.
Debt Consolidation Advice
Choosing the Right Debt Consolidation Option
There are many debt consolidations options in Canada. Choosing the one that’s best for you takes time. Speak with one of our qualified Credit Counsellors to get expert debt consolidation advice and to look at all of your options. The sooner you seek help, the more options you’ll have available to you. Here are some more suggestions about how to get the best debt consolidation advice for free.
Attend a Credit Education and Financial Management Workshop
How Not to Mess Up a Budget
As adults, we’re expected to know how to manage our money, but who teaches us? Rather than just trying to figure things out for yourself, join one of our friendly, interactive financial or budgeting workshops and webinars. We’ll talk about how to create a realistic, personal budget that works, how a spending plan can help you avoid debt problems, how to use a credit card but not end up in debt, and learn many more helpful money management tips.
The ‘school of hard knocks’ teaches some tough lessons. Register for one of our free workshops and avoid some of life’s financial bumps and bruises.
Debt Consolidation Company Reviews
The Credit Counselling Society is proud to be a leading debt and credit counselling service in Canada. We are a registered non-profit charitable organization, government licensed in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan. Since we first opened our doors in 1996, we are proud to have maintained the Better Business Bureau’s top rating of A+ the whole time.
When you need Canadian debt consolidation help or advice because your bank is no longer able to help you, rely on the trusted experts at the Credit Counselling Society.
Your Next Step - Make a Debt Consolidation Appointment Today
What to do if you Need to Consolidate Your Debts
If you need to consolidate your debts, contact us to make a free, confidential appointment with one of our Credit Counsellors. They will help you look at your options and give you the information you need so that you can make a good decision about what to do about your debts.
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