A debt consolidation loan is an effective tool for many Canadians struggling with a heavy load of debt. It helps people to save money on interest payments, keep their debt repayment schedule organized and manageable and build credit with each on-time payment. However, it’s important to understand the pros and cons of this type of loan before you consider it as a debt relief solution for your financial situation. URL:alpinecredits.ca

Which Lenders Offer Debt Consolidation Loans in Canada

In order to find the best debt consolidation loans, start by comparing interest rates and fees for several lenders. You should also consider loan terms and amounts as well as the eligibility requirements for each lender. It’s also a good idea to review the company’s customer service and track record.

You’ll want to focus on unsecured debt consolidation loans, as secured debt such as mortgages and auto loans have comparatively low interest rates and it wouldn’t make sense to include them in your debt relief strategy. It’s also worth noting that some unsecured debt consolidation loans require collateral in case of non-payment, so be sure to research this before applying.

If you’re unable to qualify for a debt consolidation loan, it may be better to explore other options such as credit counseling and consumer proposals. A consumer proposal is a federally-regulated program that can help you reduce and eliminate your debt without the need for a debt consolidation loan, and can be more effective than simply paying down your balances on time.