More and more Canadians are utilizing tactics like debt consolidation to get out of debt instead of declaring bankruptcy. In fact, debt consolidation is one of the fastest ways to save thousands of dollars in interest charges.Find out:alpinecredits.ca
The idea behind a debt consolidation loan is that you take out one giant lump sum of money to pay off all your small debts, giving you a single monthly payment with a much lower interest rate. Generally, a lender will only approve this type of loan for those who can afford to make the payments. That means you need a good credit score, enough income, and an appropriate amount of debt to repay the new loan.
The Road to Debt-Free Living: A Comprehensive Look at Consolidation Loans in Canada
While it’s possible to find unsecured loans for bad credit, the best debt consolidation loan for you will depend on your personal situation and financial profile. Start by making a list of your debts, including the individual interest rates you’re paying on each. Then, figure out how much you can afford to make in a month so that you know how long it will take to pay off your new loan.
TD offers a variety of solutions to help you manage your debt, including a debt consolidation loan. You can use our online calculators to see how choosing the right loan amount, payment frequency and term will affect your monthly payments. Plus, when you repay your loan on time every month, you can build positive payment behavior that will improve your credit score over time.