Debt consolidation consists in grouping all debts under one loan from a bank or other financial institution.
The advantage of this approach is to pay lower interest and monthly payments. It does not affect your credit, unless you do it repeatedly.
For a bank to agree to consolidate your debts you must have a good credit record, which is not always the case for people with financial difficulties.
If the bank doubts your ability to pay, they may require securities or ask you to find an endorser. It is generally not recommended to expose financially our family.
We suggest that you start by contacting your bank or another financial institution to discuss your eligibility for debt consolidation.
The Consumer Proposal?
If you do not qualify for such a loan, be sure to inform yourself about the consumer proposal, which is the most recommended alternative in this situation.
Indeed, the consumer proposal allows you to keep all your assets and pay off your debts with one monthly payment determined on the basis of your actual ability to pay.
A Private Mortgage?
You are not able to get a mortgage from a traditional financial institution? You might want to turn to a private mortgage broker to get your financing. The private mortgage is a loan from private investors to purchase a house at an interest rate of about 9%. Beware of scams and look for a broker who checks the reputation of the lenders. Visit Multi-Prêts MR for more information on private mortgage.