In addition to streamlining your debts into a single payment, a debt consolidation loan may also offer you an interest rate that is lower than that charged by your creditors saving you money in interest charges.
This option can be especially attractive if you have outstanding debts at a relatively high rate of interest (for example, those charged on some retail store cards or credit cards).
A debt consolidation loan is a single loan (generally from a financial institution) that allows you to repay your debts to several or all of your creditors at once.
You are then left with only one outstanding loan — to the financial institution.
It does not cost anything to apply for a loan in order to consolidate all your debts. Inquire at the financial institution that you choose.Download our e Book Debt consolidation loan is when an individual borrows a new loan at lower interest rate and then uses it to pay off their other loans, bills or debts with high interest rates.If you are struggling to make ends meet, applying for a debt consolidation loan in Canada via Loans Geeks will help you combine multiple debt payments into a single monthly payment.Contact several financial institutions before you choose a consolidation loan since the interest rates offered by competing financial institutions may vary.This option may be suitable for debts such as those relating to credit cards, public utilities or other consumer loans.If you are not careful and still continue using your credit accounts, you might get tempted to use them, which would increase your future debts too.– Financial institutions offering debt consolidation loan may not be as flexible as the creditors, and they need to ensure that their payments are being submitted on time.When you apply for a debt consolidation loan via Loans Geeks, you will be matched with up to five top-rated loan lenders in Canada, who have most competitive offers for your particular financial situation.If you opt for a debt consolidation from traditional financial institutions, such as banks, required criteria so you can qualify for a debt consolidation loan are typically very strict.It will not only allow you to manage your debts properly, but will also enable you to save on interest charges.A debt consolidation is more of a personal loan that people borrow to consolidate all the unsecured loans like a credit card, overdraft, lines of credit, car loan and more.