Debt Consolidation Alberta

Table of Contents

Debt consolidation unscrambles your finances. A consolidation loan combines your existing debts into one single monthly payment, making it easier to pay off your debts and save you money by lowering interest charges and reducing the time it takes to pay off your debt.

Consolidations loans are a common form of debt consolidation in Alberta. They work by analyzing your current financial standings and, if you are eligible, providing you with one lump sum payment that will pay off your outstanding debts. You are then responsible for repaying this loan directly to the lender rather than multiple different sources, and often boasts a lower interest rate than the debts that were just paid off.

The financial advisors here at Blanchard & Company Ltd. will help you negotiate favorable terms with the consolidation loan lender, including a lower interest rate, a reasonable monthly repayment amount, and a set repayment term.

Each lender has a unique evaluative criterion that they use to determine a borrower’s eligibility for a consolidation loan. You may benefit from applying for a loan that consolidates your debts if:

• you spend more money than you earn
• you are paying two or more creditors
• your creditors are threatening immediate action
• you cannot pay your bills on time or meet the minimum required payments
• your current debts are causing you stress
• you have a good credit score
• you prefer fixed payments and can afford to repay the loan

To find out if you qualify for a debt consolidation Alberta loan, schedule your free consultation with the experts at Blanchard & Company Ltd. We are here to help you discover how you might benefit from a consolidation loan or determine if there is a different debt-free solution that would better benefit your personal circumstances.

• reduces debt into one simple loan
• requires only one loan repayment each month
• can lower your interest rate
• offers a fast path to financial stability
• can improve your credit score (as compared to other debt relief methods)
• can borrow up to $30,000 in Alberta
• you don’t have to sell any of your assets

While consolidating your debts into one loan has many advantages for your finances and your credit, there are a few disadvantages you should be aware of before rushing to take out a loan.

• if you don’t change your spending habits, you can go back into debt
• there may be some up-front costs
• missing a payment has very negative consequences on your credit

To learn more about the effects of consolidating your debt and to obtain Debt Consolidation Alberta, schedule your free consultation with the experts at Blanchard & Company Ltd.

While a consolidation loan can help you regain control of your finances and be a helpful move in eliminating your debts, there will be additional work required. You will need to set a reasonable budget that you can stick to in order to stay out of further debt.

Making the minimum payment owed each month on your consolidation loan is a crucial step in paying back what you owe during the agreed upon timeframe. However, you are not confined to this repayment period. You can make lump sum payments on your consolidation loan at any time that will reduce the principal owing, and ultimately reduce the amount of interest you pay and how long it takes to repay the consolidation loan.

Some consolidation loans allow you to have additional streams of credit while repaying your loan, so it’s crucial for consumers who struggle with debt to not accumulate more while trying to consolidate existing loans. If you struggle to curb your spending, consider pre-paid visas, gift cards, and cash withdrawals.

Since your original debts will be consolidated, your existing credit cards will be at $0. This can make it extremely tempting to start spending again and, if you are not careful, you may end up back in the same predicament you started in. The financial advisors at Blanchard & Company Ltd. can help you draft a realistic budget that you can actually stick to.

Maybe your credit score was too low, or you didn’t have enough income to qualify for a consolidation loan. If your loan application has been denied or you have been told that you don’t qualify, don’t lose hope. The team here at Blanchard & Company Ltd. is here to help.

Our dedicated team of financial specialists can help you revisit your application, find a new lender, and help you explore a different debt relief solution, such as credit counselling, bankruptcy, or filing a consumer proposal.

While consolidation loans are a popular form of debt consolidation, there are in fact five main forms of Debt Consolidation Alberta. The other four consolidation methods include:

1. Debt Management Plan – A DMP offers a private way to get out of debt, which won’t appear on any public record. Instead of consolidating your debts, a DMP will consolidate your debt payments as our team will negotiate with your creditors to establish one monthly payment that fits your budget.

Benefits:

• become debt-free within 5 years
• receive professional credit counselling support

Drawbacks:

• not all debts can be consolidated
• can have a minimal impact on your credit report

2. Credit Card Balance Transfer – The main advantage of a Credit Card Balance Transfer is flexibility. This option allows you to consolidate your debts for easier repayment while also giving you the opportunity to temporarily fall back to paying just the minimums if you have a bad financial month. Be aware, though, that while lots of credit cards will have special offers to entice you to register for their card, these promotions come with strict terms and conditions.

Benefits:

• flexibility
• low interest rates

Drawbacks:

• you need to qualify with the credit card company
• special offer interest rates may expire and result in higher rates

3. Home Equity Line of Credit – You can calculate the equity that you own in your home by subtracting what you owe from the worth of your house. If you own a considerable amount of equity in your home, you may be able to borrow that amount against it to pay off your debts.

Benefits:

• low interest rates
• flexibility in determining payment arrangements

Drawbacks:

• you need to own a considerable amount of equity in your home
• can include high fees, if not negotiated correctly

4. Consumer Proposal – A consumer proposal is a formal settlement with your existing creditors that the Licensed Insolvency Trustee here at Blanchard & Company Ltd. will handle on your behalf. It will eliminate some of your debt and stop interest so you can actually afford to pay your outstanding debts.

Benefits:

• eliminates most of your debt so you can afford to pay back what remains
• you can qualify for a consumer proposal even if you don’t qualify for a consolidation loan

Drawbacks:

• includes a moderate fee
• does not include all your debts, such as student loans and child support