Alberta Debt Consolidation Options
Debt Consolidation in Alberta, AB
If you’re struggling with debt, one of the best ways to cope with your financial woes is to consider a debt consolidation loan.
This is essentially a personal loan that helps you pay off existing debts in full, meaning you don’t incur additional interest and can repair your credit score.
You’ll only need to pay back a single creditor instead of multiple, and the loan term can be adjusted to suit your financial situation.
While some people might find it strange to take out a loan to pay off other loans, it comes with several unique advantages, such as lower interest rates and only dealing with a single repayment every month.
This allows you to save money and you’ll have an easier time managing your budget.
Despite this, debt consolidation is still a loan which means you can be declined for it.
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While it’s one of the most effective options to clear your debt, you do need to make an application and submit it to the right lender for the best chances of being accepted.
If you’re currently living in Alberta and want to know more about debt consolidation options, then get in touch with Bankruptcy Canada today to find out more about the process and how to apply.
How can Bankruptcy Canada help?
As one of the most experienced financial experts in the country, Bankruptcy Canada has helped well over 100,000 clients since our inception in 1999.
Our goal is to work together with our clients to ensure that they can clear their debts and make steps towards a life of financial freedom.
Our goal is to help you secure the ideal debt consolidation loan with a low-interest rate and a repayment term that suits your budget.
Regardless of your current debts that have built up, a debt consolidation loan can be one of the most effective ways to deal with your financial woes.
Bankruptcy Canada aims to work closely with you in order to understand your financial situation, the debts that you have accumulated and also your level of income to help you find the ideal debt consolidation loan.
Whether you’re aiming to pay back your debts as soon as possible or want a stress-free repayment term, we’re confident that we can help you find the ideal solution.
What does the debt consolidation process involve?
Debt consolidation is a simple process to understand, especially with our experts at Bankruptcy Canada at your back.
Applying for a debt consolidation loan
First, you’ll start by applying for a personal loan for the total value of all your existing debts.
This does require you to analyze your financial situation in order to calculate how much you actually owe and to whom.
Bankruptcy Canada will assist you in calculating the amount you owe so that we can put together a debt consolidation loan application that covers all of the debts you want to pay off.
There are certain debts that you can’t consolidate and we’ll be listing them further below.
Depending on your credit score, you’ll receive different offers from different lenders.
It’s our goal to help you find a solution that best suits your needs based on both the repayment terms and interest rates.
Once you’ve successfully applied, you’ll be left with a single loan to repay at an affordable monthly rate.
Debts you can consolidate
It’s possible to consolidate all unsecured loans.
However, you can’t consolidate loans that have collateral such as a mortgage or car loan.
Here are the most common loans you can consolidate:
- Credit cards;
- Store cards;
- Gas cards;
- Unsecured personal loans;
- Other consolidation loans;
- Unsecured lines of credit;
- Public utility debts;
- Tax debt;
- Child support arrears.
Advantages of a debt consolidation loan
While taking out a loan to pay off other loans can seem strange to some, it actually comes with a number of advantages.
Lower interest rates
The major advantage of a debt consolidation loan is the lower interest rates.
Our trustees in Alberta will help you compare different lenders to find the lowest interest rates that are available with your current credit score.
If you have multiple debts from unsecured loans and lines of credit, then balancing multiple interest rates can be tricky.
With a debt consolidation loan, you only have a single interest rate to deal with which ultimately lowers the costs of your debts.
Having just a single repayment every month makes it easier to manage your budget.
Since you know exactly how much you need to pay each month and it all goes to just one source, it means you’ll free up a lot of your cash flow which can be used on things such as emergency expenses, savings and other essentials.
Lower monthly repayments
With a lower interest rate and flexible repayment terms, you’ll have lower monthly payments that can fit within your budget.
This makes it easy to manage your repayments and you’ll ultimately end up saving a lot of money thanks to the cheaper repayments.
Rebuild your credit score
Your credit score is important for a number of different reasons.
It helps you get better interest rates on your mortgage, it helps you get lower interest rates on future loans and it determines your eligibility for certain financial services.
When you take out a debt consolidation loan, you’re paying back all of your existing debts which reflects well on your credit report.
In addition, if you can keep up with your existing monthly repayments, you’ll slowly repair your credit score.
With just a single monthly repayment to focus on, you’ll feel a lot less pressure from creditors and debt collectors.
Get in touch today
To learn more about debt consolidation loans in Alberta, don’t hesitate to give us a call today to arrange a free consultation.
You can rest assured knowing that Bankruptcy Canada provides some of the best impartial financial advice that you can find.
We’re confident that we can help you clear your debts and adopt a life of financial freedom.