Classified dating - Consolidating debt in canada
This means you can arrange much lower monthly payments than with another type of loan.
If you do choose to go this route, you should make sure that you try to pay off this extra mortgage as quickly as possible and don’t do this very often.
If you find yourself doing this every year or two, that means that you are spending more than you make, and it is going to take forever to get your mortgage paid off at this rate.
Banks and credit unions are typically only willing to lend people around 10% of their net worth (your assets minus your debts) on an unsecured basis.
So if you ask your bank for a debt consolidation loan of $20,000, but your net worth is only $20,000, they will probably decline your request.
They may be able to give you a $2,000 unsecured loan (10% of your net worth), but not much more.
We at Consumer Credit Counselling help consumers across Canada who are having financial difficulty by consolidating their monthly credit cards and unsecured loan payments into one affordable monthly payment.
We can also arrange for a debt reduction or elimination of annual interest charges which will lower your monthly minimum payment.
If you are falling behind on your payments or your balances are never dropping due to the high interest, we have a debt consolidation plan that will be of interest to you. If you have a number of debts, you may wish to merge them all into one loan. There may be a number of reasons why you would wish to do this.Below are the most common reasons: To learn more about what debt consolidation is and how it works in Canada, click here.To consolidate all of your debts, your first option would typically be to approach your bank or credit union and see if they can help you.If you have a mortgage, you might look to see if you have enough equity in your home to consolidate your debt with your mortgage.This is usually people’s preferred option since mortgage interest rates are usually much lower than other loan interest rates, and mortgages can be amortized (paid) over 25 years.