Debt Consolidation in Guelph, ON
When you’re struggling with debt, one of the best ways to overcome those financial troubles is to seek a debt consolidation loan.
A consolidation loan typically means that you’ll be paying off all of your existing loans at once with another loan.
This effectively means that you’ll only need to pay a single creditor instead of managing several different debts with varying interest rates.
Although you’re essentially taking out a loan to pay off other loans, it comes with the advantage of having a single repayment every month at much lower rates.
This allows you to save a lot of money while paying off your debt, making it surprisingly easy to manage even if you’re swamped with unsecured debts.
However, debt consolidation is still a loan and thus, you may be declined for a debt consolidation loan in Guelph if you don’t speak to the right companies or make a proper application for it.
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How can Bankruptcy Canada help?
Bankruptcy Canada is one of the most experienced financial experts in the country.
With over 20 years of experience, we’ve helped over 100,000 different clients clear their debts and make great strides towards financial freedom.
We’ll work together with you to secure the most efficient debt consolidation loan that will help you clear your debts and put you back on your feet.
Regardless of whatever credit card or personal loan debts that you may have built up, a debt consolidation loan, when used correctly, can be one of the most effective ways to free yourself from multiple financial burdens.
By working together with you and understanding your financial situation, we’ll decide together on the most effective way for you to overcome your financial struggles with a debt consolidation loan.
With over 430 trustees across Canada, including Guelph, we’re confident that we can offer you an outstanding level of service to overcome your financial woes.
What does the debt consolidation process involve?
Debt consolidation is a process that combines all of your outstanding bills into a single monthly payment with a low-interest rate.
This is what makes it an affordable way to deal with your debts, but how exactly does it work and what does the process involve?
Applying for a debt consolidation loan
In most cases, you’ll be applying for a personal loan for the total value of all your existing debts.
To help you decide how much this is, we’ll analyze your financial situation and calculate how much you owe and to who.
Once you’ve put together an application, we’ll search for lenders that can provide the lowest interest rate based on your existing credit score.
The lender will then approve this debt consolidation loan and then you’ll be given the money to pay off all of your existing debts.
After this process, you’ll be left with just a single loan to repay at a low monthly interest rate.
Debts you can consolidate
All unsecured loans can be consolidated.
However, you cannot consolidate any loan that has collateral such as a car loan or a mortgage due to the nature of those loans.
This effectively means that you can consolidate loans such as:
- 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
Many people think that taking out a loan to pay off other loans is rather pointless because you’re still going to be in debt.
However, a debt consolidation loan does have advantages, especially if you’re struggling with multiple different sources of debt.
Lower interest rates
The first big advantage is the lowest interest rates.
At Bankruptcy Canada, our trustees in Guelph will compare different lenders to help you find the lowest interest rates available with your current credit score.
This will effectively reduce the amount of money that you pay thanks to the lower rates.
If you have many different debts from unsecured loans, then you might find that juggling multiple different interest rates is not only frustrating but can actually cost you a lot of money depending on how much you owe and how old certain debts are.
Another fantastic advantage of debt consolidation is the ease of budgeting.
Since you only have a single monthly repayment to worry about, it makes budgeting for it much simpler.
You’ll free up a lot of cash flow since you’re paying less each month, and this can help you achieve the financial freedom you’re looking for.
Lower monthly repayments
Since you have lower interest rates and a flexible loan term, it means that you’ll end up with lower monthly payments that can fit within your budget.
This makes it much easier for you to manage a consolidated debt as opposed to several unsecured debts.
Rebuild your credit score
Since you’ll have paid off all your existing debts at once, it will reflect well on your credit report.
It’s a good step in the right direction in terms of achieving financial freedom.
As long as you can keep up with the new loan, you’ll slowly repair your credit score and improve your ratings.
Having just a single monthly repayment as opposed to several means that you’ll feel a lot less pressure from creditors.
This can be problematic if you have collectors knocking on your door or trying to get in touch with you.
Consolidation loans will pay off all these debts and relieve much of that pressure.
Get in touch today
If you’d like to learn more about debt consolidation in Guelph, don’t hesitate to contact Bankruptcy Canada today for some expert assistance and impartial advice on how to apply for a debt consolidation loan.
We’re confident that we can assist you in achieving the financial freedom that you’re looking for.