Consolidation Loans
Is a Consolidation Loan right for you?
Consolidation loans consolidate all of your debts into once single payment, and sometimes reduce interest.
We get calls everyday from individuals asking for consolidation loans, when a consolidation loan isn’t what they need.
Consolidation Loans are the answer when:
- You are struggling to juggle multiple debt payments
- You can afford to repay ALL of your debt PLUS interest
- You have an income and credit score that will allow you to qualify for a low interest Consolidation Loan
We recommend against taking on high interest consolidation loans charging interest in excess of 10%.
Use our payment calculator to estimate what you might end up paying for a Consolidation Loan should you qualify.
The reality is that many people who are interested in a consolidation loan would be better served by a Consumer Proposal. A Consumer Proposal is appropriate when:
- You can’t qualify for a low interest consolidation loan due to your income or credit score
- Even after consolidation, the consolidated loan payment is unaffordable
- You can’t afford to repay ALL of your debts PLUS interest
- Doesn’t require any minimum credit score, and is therefore easy to qualify for
- Consolidates your debt into one single payment, just like a consolidation loan
- Stops Interest – Not low interest, but NO interest
- Allows you to repay less than you owe
- Protects you from your creditors meaning no more collection calls, or wage garnishments
- Costs nothing to start
When you speak to one of our Licensed Insolvency Trustees we’ll analyze your entire situation including your assets, debt, budget, and family situation. Based upon this assessment your Licensed Insolvency Trustee can help you decide whether or not a Consolidation Loan, Consumer Proposal, or other debt solution might be appropriate.
Contact a Licensed Insolvency Trustee
Some of us face personal financial crisis during our lives. We may be able to solve some money problems ourselves, but sometimes we need professional help. The situation may have gradually worsened over time, or happened suddenly because of a job loss, serious illness, divorce, or other major life event.
Whatever the cause, if you’re struggling with debt, you have options. Recognize the danger signals.
You may have a debt problem if:
- You’re always behind on your bills or their constantly overdue
- You’re relying on borrowing to balance your monthly budget
- You have other debts, that when combined with your overdue bills, are resulting in a budget shortfall
- Creditors and collection companies call you, threaten to sue, or have obtained a wage garnishment
Meet with a Licensed Insolvency Trustee to go over all of your options
If you are facing serious financial difficulties, you will want to meet with a Licensed Insolvency Trustee. When you meet with a Licensed Insolvency Trustee, try to assemble as much information about your financial situation as possible including: credit card statements, bank statements, pay stubs, mortgage records, loan documents, etc. A Licensed Insolvency Trustee will explain your options and the advantages and disadvantages of each option. The consultation is free, and it does not cost anything to start working with a Licensed Insolvency Trustee. If you are asked by for money up front it is a red flag; call us instead.
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee is an officer of the court who balances the interests of you and your creditors. In addition to helping you assess your situation, a Licensed Insolvency Trustee will inform and advise you about both the proposal and bankruptcy processes and play an impartial role in ensuring your rights, as well as those of the creditors, are respected.
A Licensed Insolvency Trustee is the only professional authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt, such as a consumer proposal or a bankruptcy.
When you work with a Licensed Insolvency Trustee, you can rest assured that you are dealing with someone who has demonstrated that they have the knowledge, experience and skills to be granted a license from the Office of the Superintendent of Bankruptcy, and is overseen by federal regulators.
A Licensed Insolvency Trustee:
- Reviews your unique personal financial situation and explains all options available to you
- Answers all of your questions
- Assists you in filing the required government forms
- Guides you through the entire insolvency process from beginning to end
- Deals with all of your creditors on your behalf
- Collects payments from you, holds them in trust, and legally distributes them to your creditors as required by law
- Provides two free credit counselling sessions to you
- Reports the completion of your insolvency process to the Federal Government who in turn reports your completion to both Canadian Credit Bureaus
Not sure what to do next?
- Request a Free Consultation
- Give us five (5) minutes on the phone
- Let us give you some free advice, explain your options, and do our best to guide you in the right direction
We don’t sell our services. We simply assist you to understand your options and support you in deciding what path is best for you.