Debt Consolidation Toronto

More and more residents are turning to debt consolidation in Toronto (and Ontario) as a solution to their financial struggles.

 

We, at Xpert Credit, have been in the finance business and helping clients with debt management and private mortgages in Toronto for 17 years. We know that prices and cost of living increase every year, while wages don’t always keep up. Toronto is an expensive city. This means more people dealing with declining (or bad) credit and towering debt.

 

Whether debt consolidation is a good idea or not depends on your situation. We always carefully and confidentially assess every client’s circumstances to try to come up with the best form of debt help. We can help you get your life back on track.

Debt consolidation definition

Debt consolidation is the type of debt where you choose to obtain a new loan to pay out all of your smaller loans or debts.

A debt consolidation loan is a good way to bring all your other debts together into an accumulative loan form that you can pay with one monthly payment.

It is referred to as “consolidating” or “consolidation” because it’s bringing multiple debts together and combining them into one loan.

How do you know you might need debt consolidation?

  • You have large loans from different banks
  • You have unsecured personal loans (payday loans, outstanding utility bills, etc.)
  • You have credit card debts from one or many credit cards
  • You have non-government student debt
  • Or all of the above

Who qualifies for debt consolidation in Toronto?

When it comes to qualifying for debt consolidation, the lender can have several terms. Toronto residents should be aware of the following main terms.

  1. Proof of income

In the list of debt consolidation qualifications, this is the most important one. Most lenders mark this as mandatory; they check your financial means and make sure that they are enough to sustain the terms of the loan.

  1. Credit history

Lenders check your payment history and credit report.

  1. Financial stability

This step is a general review of your finances. Lenders want to make sure that you’re a profitable financial risk.

  1. Equity

Having collateral, such as home equity, is one of the most common debt consolidation qualifications for larger loans.

One thing to keep in mind is that there are different ways lenders approach debt consolidation qualifications and that some lenders might demand certain conditions that may seem to be unreasonable.

This is why it’s essential to get advice from a finance professional when considering a debt consolidation loan.

Advantages of debt consolidation:

  • With a debt consolidation loan, instead of having to deal with several payments, you now only have to deal with one. Thanks to this, there is a reduced risk of missing monthly payments.

 

  • Interest costs are likely to be reduced each month due to debt consolidation, helping you make only one single payment rather than several small ones.

 

  • With a debt consolidation loan, you can pay off all the credit card debts at the same time and lower the high interest that you pay on credit card debt.

Do consolidation loans hurt your credit score?

There will be no negative effects on your credit score if you make all your monthly payments on your debt consolidation loan.
Since you have reduced your interest payments, your credit score may even improve as a result of your new debt consolidation loan.

What is debt management?

Many people can find themselves struggling to pay their credit card bills every month and don’t know how to get back on track. In these situations, a debt management plan might help in getting out of the rut. A Debt Management Plan, also known as a DMP, is a debt relief option where a credit counseling agency works with your creditors to come up with a more suitable monthly payment for your situation. A single payment is made to a credit counseling agency, which then pays your creditors on your behalf.

Explore your debt consolidation options in Toronto

Xpert Credit is ready to find the best debt consolidation option for you. As one of Toronto’s go-to debt consolidation experts, we will handle your case confidentially and respectfully. Our debt help solution will get your life and finances back on track!

Fill out the contact form below to get a callback.

Ask Us