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Free Debt Consolidation
No contact details required to find out if you qualify
In Canada, one of the options available to provide debt relief is debt consolidation.
Debt consolidation simplifies the process of paying off multiple sources of debt by consolidating them into one monthly payment. There are several debt consolidation programs available in Canada that can help people pay their debts.
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This is a special type of loan that you can take out to pay off your debts. Instead of making several monthly payments, you just need to make one monthly payment – that of your debt consolidation loan.
Debt consolidation loans have lower monthly interest rates than other types of loans offered in Canada, so the end result is the amount you need to pay is reduced.
Taking out a debt consolidation loan doesn’t really affect your credit score – as long as you make your monthly payments on time.
Most banks and financial institutions require collateral. They will also look at your credit score and, if you have a bad one they will either deny your loan application or give your one with a high interest rate.
You can either refinance your home or take out another mortgage to pay debts. Home equity is the amount that is left when you subtract your home mortgage from how much the house is worth.
For example, if your home is worth $500,000 and your mortgage is $350,000, then your equity is $150,000.
You can talk to your bank about taking a second mortgage with your equity and use it to pay your debt. You get a lump sum of money that you can use to pay off your debts and afterwards, you just need to make one monthly payment to your home equity loan.
It is a secured loan as you are using your home as collateral. Secured loans have lower interest rates than other types of loans.
As long as you make your monthly payments, a home equity loan should not affect your credit score.
If you don’t have much equity on your home, this type of loan will not make much of a dent on your consolidated debt.
Applying for a second mortgage will require you to pay fees to your bank.
You can get a line of credit from your bank to pay off consolidated debt. With a line of credit, your bank card can be used like a credit card. So, even if you don’t have that money in your account, you can use it to pay your debts.
There will be a predetermined limit to what you can “spend” with a line of credit. For example, $50,000 a month.
Lines of credit have a lower interest rate than loans or even credit cards. They are priced according to the Prime interest rate, which is set by the Bank of Canada. The Prime interest rate has been low these past years, so the interest on lines of credit can be as low as 1 to 8%.
There is also a monthly fee that you need to pay with a line of credit so if that is higher than the interest rates on your other loans, it might not be worth it.
You can consolidate your debt by paying them off using a low-interest credit card rather than just paying off the monthly credit card bill.
It’s all in a name, these credit cards offer low interest rates. So there is a chance that just paying off this credit card will be cheaper than dealing with multiple creditors with multiple different interest rates.
You need to have a good credit score. There are also other fees that could raise your debt, even if your interest rate is low.
Working with a credit counseling agency, you can negotiate with your creditors for more favorable repayment rates. Credit counselors can often get your creditors to agree to lower interest rates or to drop late fees and penalties. You then make monthly payments to your agency which they will use to pay off your debt.
Instead of multiple loan payments with different interest rates, you make one monthly payment to your agency. This makes it easier to remember and budget for.
It will affect your credit score. Even after you’ve repaid everything, the fact that you were in a debt management program will show up for six more years.
Your credit counseling agency will charge service fees.
To know more what you can benefit from our Ontario Debt Relief Program, simply try our Debt Consolidation Calculator below and one of our debt specialists will get in touch with you and provide you the best debt relief option that fits your situation.
No contact details required to find out if you qualify
We will help you reduce as much as 75% of your debts and consolidate it into a single affordable monthly payment. Your creditors will stop harassing you and all interest will freeze if you get into our Ontario Government Debt Relief Program.
Many Ontarians are already benefiting from our Debt Relief Program, YOU should too!
Find out how much you can write off portion of your debts by getting your Free Savings Estimate below. A debt specialist from National Debt Relief Services in Ontario will discuss all options and provide you tailor-fitted Debt Relief Program.
SEE IF YOU QUALIFY TO:
No contact details required to find out if you qualify
A Debt Consolidation is a negotiated debt settlement offer made between you and your creditors with the help of a Debt Relief Agency in Ontario. Some key benefits of Debt Consolidation are interest-free program, no upfront fee required, combined monthly payment into one affordable amount, no lawsuits, and many more.
Yes, your assets are safe from creditors. A licensed debt relief agency in Ontario will help you come up with an offer to your creditors that will make sure your assets will be out of the paper.
No, in fact, this is one of the great advantages of a Debt Consolidation Program. All wage garnishment will stop from the day you filed the proposal.
The effect on your credit score is not going to be severe. Your credit score will most probably go to R7 Rating and will remain in your credit report for another 3 years after you completed the program. This means that it will not be permanent and you will still be able to rebuild your credit score.
This varies depending on the proposal you will be discussing with the help of a certified debt relief agency. It is also worth noting that debt consolidation cannot exceed more than 5 years.
If a debt is shared, you need to file a joint debt consolidation offer to your creditors. However, in most cases, in which the debts are individually incurred will have no impact on your spouse.
After three missed payments, your debt arrangement with creditors will be broken and you will end up getting chased again for the original debt amount plus interest.
A debt consolidation offer can be paid off earlier if you can. In this way, you receive your “Certificate of Completion” sooner and you can immediately start rebuilding your credit score.
National Debt Relief Services Ontariois a certified Canadian Debt Relief Agency that offers FREE CONSULTATION to your debt consolidation needs. We value the trust given to us by our clients by making sure your personal information is confidential and private. Our personalized plans are designed to tailor fit your financial capacity. Our specialists will get in touch with you by simply answering a few questions thru the link provided below.
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