Debt consolidation
Combine all your debts into one loan!
When you secure a single loan from a financial institution to pay off your debts, you’ll have only one monthly payment. This will allow you to simplify your financial management while benefitting from a lower interest rate.
When should you consider debt consolidation?
Debt consolidation may be considered in the following situations :
- You have so many payments that you’re struggling to manage them;
- You’re paying high interest rates on your credit cards in particular;
- You have a steady job;
- Your credit rating is high enough to secure a consolidation loan;
- You’ll make a reasonable consolidation payment every month that will allow you to meet your basic needs.
What is the process for debt consolidation?
Debt consolidation includes the following steps:
- Assessment of your financial situation (debts, income, expenditures and assets) : The trustee conducts an objective and professional assessment to determine whether debt consolidation is the best option based on your repayment capacity.
- Financial institution referral : If debt consolidation is the best option for you, the trustee will suggest that you make an appointment with your chosen financial institution.
What are the advantages of debt consolidation?
Debt consolidation has the following advantages:
- Since you have only one monthly payment, managing your finances is easier;
- You have only one creditor since the bank pays your other debts;
- You pay less interest, which reduces the total repayment cost;
- Your monthly payment is often lower, which takes the pressure off your budget;
- Your credit score may increase in the long term if you make your payments on time.
How can a Licensed Insolvency Trustee help you with debt consolidation?
Licensed Insolvency Trustees have the expertise to help you determine the solution that’s best suited to your situation. If debt consolidation is the best option, they will suggest that you contact a financial institution.
Other solutions that can help
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Personal bankruptcy
Personal bankruptcy might be the solution you need to eliminate your debts and get a fresh start. We can guide you through every step.
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Consumer proposal
This is an excellent alternative to bankruptcy. We negotiate an agreement with your creditors to reduce your debts and/or spread out your repayments over a longer period. Our Licensed Insolvency Trustees will take care of everything.
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Renouncing an insolvent estate
If a loved one passes away and leaves more debts than assets, you have the option to refuse the inheritance and avoid assuming their debts. Our experts can guide you through this process.
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Voluntary deposit
You commit to paying a percentage of your income to the court every month until you’ve paid off all your debts. This is an excellent solution for avoiding bankruptcy!