Debt consolidation compiles all your debts and creditor dues into a single loan with one easy payment. This makes it easier for the borrower as it is less time consuming, less interest paid, it strengthens their credit score, and simplifies their repayment process. A debt consolidation loan's terms will depend on your credit score (the better your credit score, the better the interest rate), amount of debt, and type of loan taken.
Debt consolidation loans cover many types of loans, some of which could be credit card loans, medical bills, personal loans, mortgages, payday loans and more.
How to Get a Debt Consolidation Loan?
The providers of debt consolidation loans are generally private lenders or private mortgage companies, who have lenient terms and conditions and can facilitate an easy debt consolidation loan to you. These lender's may require that you provide collateral for the debt consolidation loan, but this is not always the case.
If you are a home owner, you could also refinance your existing mortgage to encompass your debts and your mortgage(s) into one easy payment.
The biggest advantage of debt consolidation, apart from reduced complexities in your debt repayments, is the lowered total interest rate. Since the providers of this loan are typically long-term lenders, their rates will be lower than any credit card company or payday loan.
Contact me any time so that we can discuss your specific situation and needs. I am happy to advise you on the best route to take and tell you all the options available to you.
Meghan Van Houten - Mortgage Agent
416-709-9062 | 1-877-366-3487
Independently owned and operated
202-120 Traders Blvd. E., Mississauga ON L4Z 2H7