Are you in financial trouble or have bad credit?
Are you in financial trouble? You are not alone! Many Quebecers experience financial difficulties and quickly accumulate debts, which have a negative impact on their credit file. The consultants at Refinancement Hypothécaire can help you regain control of your finances and avoid having to declare bankruptcy. Call us today to schedule a debt consolidation!
What is debt consolidation?
A great alternative to personal bankruptcy, debt consolidation is the process of combining all your debts into a single loan. Instead of paying your various creditors (credit cards, lines of credit, banks, etc.), you combine all your debts into one monthly payment to a banking institution! When done properly, consolidation is a simple and effective option to regain control of your debt level.
Consolidate all your debts into one low-interest loan
Taking out a debt consolidation loan is a method of reducing both the interest you pay and your monthly payments. A consolidation loan is taken from a financial institution and the money is used to pay off all your other debts, especially your credit cards (which have a high interest rate). The result is the elimination of all your credit except at one financial institution.
Consolidation sounds simple, but to get the most out of it, you need an expert! The professionals at Refinancement Hypothécaire will be happy to guide and assist you in this process, in order to obtain the best interest rates and pay off all your debts as quickly as possible.
Avoid personal bankruptcy and late payments with debt consolidation
Debt consolidation loans for bad credit Canada
What are the benefits of debt consolidation?
For many individuals who are in a high debt ratio, debt consolidation is the best option available. However, it is important to speak with a financial advisor or financial recovery consultant to get a good plan: when it comes to credit, nothing beats a consultation with experts.
1. Reduce your overall interest rate
The interest rates of many financial tools are sometimes very high, especially credit cards with an interest rate of 22%. Accumulating a balance on your credit cards can lead you to pay huge interests! Consolidating your debts brings all your credits under one lower interest rate: it’s a great way to stay in control and a solution to your financial difficulties.
2. Consolidate all your debt obligations into one monthly payment
It’s easy to get lost when you have several different creditors! Every month, we pay our credit card, personal loan, mortgage, car loan and so on, we are likely to forget. Paying all your debts with money from a new loan allows you to transform all your financial obligations into one monthly payment! Your budget will be easier than ever thanks to an expert advisor.
3. keep your credit rating intact
Unlike declaring bankruptcy, a debt consolidation loan will not have a negative impact on your credit rating. Since it is just another loan, you are not putting yourself in a bad financial situation. Don’t forget that declaring bankruptcy gives your file the “R9” mark, which makes it very difficult to access credit for 7 years. Our debt consolidation loan experts can help you avoid this situation with a solid budget!
Debt consolidation could be the solution you need to reduce your fees and interest! Learn more by talking with us.
Why work with our debt consolidation team?
Ensuring that the consolidation loan is beneficial to you
Debt consolidation brings many benefits to individuals who are having trouble covering all their payments and expenses, but only if the terms of the loan are favorable and reasonable. It is important to have an interest rate that is lower than the combined interest of your other debts, and to reduce the amount of your payments. For such an important decision for your future, we strongly recommend that you talk to financial experts!
Ensure you are able to cover the monthly payments
We all have a lot of good intentions, but willingness and ability are not always the same thing, especially when it comes to debt! The first step is to establish a monthly budget for the next few years and calculate your ability to pay and your expenses to avoid bad surprises. Refinancing Mortgage is here to help you be disciplined, not create new debts, take control of your finances and keep your good rating!
Are you having financial difficulties?
Consolidation loans for bad credit in Canada might be the solution
Are your credit card debts and expenses accumulating? Contact us to discuss the possibilities of debt consolidation for you and your family! Working with Refinancing Mortgage is the best way to get your debt under control without sacrificing your credit rating. We work with you to reduce your monthly payments and avoid having to declare bankruptcy.
Don’t let your financial situation get worse and the non-payments pile up before you take the right action and seek advice.
Contact our experts today for debt consolidation!
What criteria do I need to meet to apply for consolidation?
- A debt ratio that is too high;
- Unstable employment or low income;
- Poor payment history;
When you meet with our counselors, we will do a complete evaluation of your financial situation to determine the best way to pay off your credit card and restore your financial stability.
If you are turned down by a financial institution, Refinance Mortgage can help you with a private loan!
Learn More About Debt Consolidation
Are you overwhelmed by multiple monthly payments and high-interest rates on various outstanding debts? Discover how private debt consolidation loans in Canada can save you time and money, improve your credit score, and provide a path to financial freedom.
What types of debts can you consolidate with debt consolidation loans in Canada?
Debt consolidation loans provide a strategic advantage for Canadians seeking to streamline their financial obligations. You can consolidate various types of debts, including credit card debt, personal loans, student loans, and more. This consolidation process simplifies your payments and often offers more favorable terms.
What types of debts can I consolidate, and how does it work?
Consolidating debts involves combining various outstanding debts into a single loan. You can typically consolidate credit card debt, personal loans, medical bills, and more. By doing so, you simplify your payments and often secure a lower interest rate, making it easier to manage your finances.
What steps should I take to evaluate my debts and create a successful consolidation strategy?
Start by listing all your outstanding debts, including balances and monthly payments. Then, explore various debt consolidation strategies, such as the debt avalanche and debt snowball methods, to choose the one that aligns with your financial goals and circumstances.
What financial habits cause difficulties?
Certain financial habits inevitably cause debt problems for Quebecers. During a debt consolidation meeting, our experts can work with you to develop a solid plan and useful financial advice.
Common causes of increasing debt levels for individuals are:
- Having multiple lines of credit;
- Paying bills after the due date;
- Poor monthly repayment habits;
- Making only the minimum payment each month;
- Ignoring bills and letting them go until collection;
- Postponing savings for retirement or rainy day;
- Making impulse purchases or going into debt for a product or service beyond your ability to pay;
- Lack of debt management and follow-up, such as credit card balances;
Does debt consolidation affect my credit report?
A debt consolidation is a loan from a banking institution or private lender. Unlike a bankruptcy filing, taking out a new loan will not negatively impact your credit report with Equifax or TransUnion. However, it is important that you do not miss any payments, otherwise each missed payment could bring your credit report down very quickly!
How does credit score and credit report affect debt consolidation loan application?
Your credit score and credit report play a crucial role in the loan application process for debt consolidation. They impact your eligibility, the terms of your loan, and the interest rates you may receive. To effectively manage your existing debts, it’s important to evaluate your current financial situation, including assessing credit card balances, outstanding loans, and monthly payment obligations.
Meeting with experts is a great first step if you’re thinking about debt consolidation and looking to improve your credit report.
The consultants at Refinancement Hypothécaire will be happy to discuss your financial situation to find the best solutions for you!
What interest rate should I aim for in a consolidation?
The goal of debt consolidation is to help you reduce your monthly payments and regain control of your financial situation. Our advisors are here to help you determine if the interest rate on a debt consolidation loan is right for you and will reduce your monthly payment!
When you accumulate interest on all your debts (personal loan, line of credit, credit card, etc.), your monthly payment grows quickly! This can have serious consequences and puts you at risk: missing a payment can have a major impact. We make sure with you that the interest rate of the consolidation is lower than all other accumulated debts and will save you money.
What is the difference between bankruptcy and debt consolidation?
Bankruptcy is a way, like debt consolidation, to get out of debt when you are unable to pay it on time. However, bankruptcy is fundamentally different from consolidation!
In a bankruptcy, you give your assets to an outside entity, usually a bankruptcy trustee, to liquidate your assets and notify your creditors. This comes with several advantages and disadvantages:
- You are discharged from your debts entirely
- You are protected from your creditors
- You lose most of your assets (house, car, etc.) to settle your debts
- Your credit file is affected for at least 6 years
Given the impact that bankruptcy can have on you and your family, it’s important to consider all other financial recovery options available! The consolidation option, for example, allows you to keep your assets, whether it is your home or your car. The best approach is always to consult professionals for advice.
What is the difference between secured and unsecured debt consolidation loans?
When considering debt consolidation options, it’s essential to understand the distinction between secured and unsecured loans. Secured debt consolidation loans require collateral, such as your home or car, to secure the loan. These loans often come with lower interest rates. On the other hand, unsecured debt consolidation loans do not require collateral but may have higher interest rates. Choosing between them depends on your individual financial situation and risk tolerance.
What are the different debt consolidation lenders?
You have several lender options, including traditional financial institutions like banks and credit unions, as well as private lenders and debt consolidation companies.
Debt consolidation companies:
Debt consolidation companies provide services that can simplify your debt management program. They play a crucial role in negotiating with your creditors and consolidating your debts into a single payment schedule, making it easier for you to manage your financial obligations.
Traditional lenders vs. alternative options:
When seeking a debt consolidation loan, you have choices between traditional financial institutions like banks and credit unions, as well as alternative lenders in the private loan market. It’s essential to compare factors such as interest rates, prepayment penalties, and repayment terms to make an informed decision that aligns with your financial goals.
How to apply for a debt consolidation loan?
To apply for a debt consolidation loan, follow these steps:
- Complete the application form: Start by filling out the loan application form provided by your chosen lender. Ensure that you provide accurate and up-to-date information, as this is crucial for improving your approval chances.
- Gather necessary documentation: Prepare the required documentation, which typically includes proof of income, employment verification, and details of your outstanding debts. Having these documents ready will streamline the application process.
- Undergo a credit check: Lenders will assess your creditworthiness by conducting a credit check. Your credit history and score play a significant role in determining your eligibility and the terms of your debt consolidation loan.
- Seek credit counselling and guidance: Consider seeking guidance from a credit counsellor. They can help you improve your credit rating, develop a debt management plan, and ensure that you make timely payments. Their expertise can be valuable throughout the loan application and repayment process.
By following these steps and being well-prepared, you can increase your chances of successfully applying for a debt consolidation loan and taking control of your financial situation.
How to effectively manage debt consolidation loans, and what are the alternatives to consider for debt relief?
To manage your debt consolidation loan effectively, you can explore different repayment strategies like the debt avalanche and debt snowball methods, which help you pay off your loan balance efficiently. Additionally, it’s valuable to learn about alternative debt relief options such as debt settlement and consumer proposals, allowing you to compare them to debt consolidation loans and make informed financial decisions.
How to maximize the benefits of a debt consolidation loan, save money and build credit?
Consolidating your debts into a single loan offers the potential to save money on interest charges and enhance your credit utilization ratio. Responsible loan payments over time can positively influence your credit score. To ensure the success of your debt management plan, it’s essential to maintain good financial habits, including budgeting and consistently avoiding late payments.