What is debt consolidation?
A debt consolidation loan is a loan that allows you consolidate all your debts into one affordable monthly payment.
What are the advantages of a debt consolidation loan?
- Replace all your monthly payments with just one payment, which should make it easier to budget your monthly income.
- Debt consolidation loans may offer a lower interest rate than the rate you are paying on credit cards, which will result in smaller payment each month.
- With a lower interest rate and/or extended terms, you may be able to reduce your total monthly payments, or pay your loan off sooner.
How to qualify for a debt consolidation loan?
You must meet the following criteria:
- The bank will request a copy of your monthly expenses to determine if you can meet your payment obligations.
- You must be employed, or have a source of income that will enable you to repay the loan.
- Your bank may request a co-signor or collateral. (house, car, boat etc..)
What is the next step?
To find out if you qualify for a debt consolidation loan, contact your bank or financial institution.
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