Debt Consolidation Lenders: Where To Go For a Debt Consolidation Loan

If you are considering taking a debt consolidation loan as a way of dealing with your debts, you will need to find a lending institution able to meet your needs. We suggest you lookup the information on several of them, compare what each has to offer, and then decide which one you will approach with a request to be your debt consolidation lender.

If you are looking for a debt consolidation loan lender, you have a number of options.

First, you can start with a chartered bank. In Canada, banks are the largest lenders, so they are the logical place to start. In addition, you probably already deal with a bank: you deposit your paycheque at a bank, and you pay your bills through your bank account, so your bank is already familiar with you, your income, and your spending. Since they already know you, they are more likely to give you a debt consolidation loan.

Your next option, if you own a house, is to try a different type of debt consolidation lender, called a mortgage broker. A loan secured by a house is the cheapest form of borrowing possible; so, if you qualify, this is a great option.

If you don't qualify for a mortgage, you could try a finance company. However, finance companies charge very high interest rates, generally at least three times more than what a bank would charge, so only borrow from a finance company if you have no other option.

If your income is too low, or your debt is too high to qualify with any of these debt consolidation loan lenders, it is probably time to speak to a credit counsellor about a debt management plan, or to an advisor about a consumer proposal as a way to deal with your debts.