Most Canadians, in Alberta and British Columbia, for example, have some type of debt. Especially in larger cities like Edmonton or Calgary. Whether it’s credit card debt, student debt, a mortgage, or maybe even a mix of debt. Making multiple monthly payments to pay off all your debt can be stressful and even confusing, so many Canadians turn to debt consolidation.
Debt consolidation is when you take out one, typically big, loan. You then use that loan to pay off all your debt. Afterward, you are left making one monthly payment to pay off that loan.
Debt consolidation may cause a small dip in your credit score, but not as much as debt settlement, consumer proposal, or bankruptcy would.
Best Debt Consolidation Alberta
If you are interested in consolidating your credit card debt or any other types of debt you have, here’s a look at two of the best loan search engines in Canada.
LoansConnect
LoansConnect is a Toronto-based company that helps Canadians from Alberta, British Columbia, or any province/ territory (see also Toronto and the rest of Ontario) find the perfect debt consolidation loan. LoansConnect is a search engine for loans that connects Canadians with lenders. Regardless of your credit rating, you can find the perfect loan for consolidating debts.
Lenders that work with LoanConnect tend to offer a fair interest rate. This will help stop you from incurring even more debts. Canadians can find loans up to $50,000 on LoansConnect. So, it is the perfect solution to consolidate your debt into one.
Here are some of the pros and cons of using LoansConnect for debt consolidation.
Pros
- LoanConnect works with a variety of reliable lenders. This makes it more likely you will find low-interest rates.
- Interest rates start as low as 4.6%.
- No minimum credit score is needed.
- Repayment is flexible and can range from 12 to 60 months.
- Loan amounts are flexible and range from $500 to $50,000.
- You will be connected and likely approved quickly. You can often get your loan in as little as 12 hours.
- Searching and applying for a debt consolidation loan is easy. Everything is done completely online.
Cons
- Your debt cannot total more than 60% of your income for you to be eligible.
- LoanConnect is not a lender themself; they just connect Canadians with lenders.
- LoanConnect will only show you the lenders that partner with them.
Loans Canada
Another way to search for debt consolidation lenders is to use Loans Canada. Loans Canada helps Canadians find the best lender to help with their debt consolidation. You can ensure a lender is the best option for you easily as well.
Loans Canada allows past borrowers to rate and review lenders. This helps future borrowers like you avoid any lenders with poor service.
Loans Canada offers a variety of loans. Debt consolidation, personal loans, auto loans, home equity loans and credit-building loans. The application process should only take you five minutes. Then, you will quickly see a list of debt consolidation lenders that meet your needs.
Pros
- It is possible to find a lender with a relatively low-interest rate, starting at 4%.
- No minimum credit score is needed.
- Loans up to $300,000 are available.
- The loan term is flexible, as it ranges from 3 to 60 months.
- Your money to start consolidating your debt can come within 48 hours.
- Everything is done online, so you don’t need to visit any physical locations.
- You can easily compare multiple lenders at once to make sure you’re getting the best loan for your debt.
- Loans Canada offers a wide range of loan types if you need another loan in the future.
Cons
- If you have bad credit, you may be charged a higher interest rate.
- You may be charged a penalty if you make payments early.
- Loans Canada is just a search engine for lenders, not a lender themselves.
- Limited to the lenders that Loans Canada works with.
The Bottom Line
Is your cash flow constantly used for paying off credit cards and other types of debt? Does your debt feel like it’s never-ending? Applying for a loan for debt consolidation may be one of the better solutions for paying off your debt.
You can easily search for a loan on either LoansConnect or Loans Canada to put towards paying off all your credit cards and/or other debt.
It is important to ensure that your loan for consolidating your debt has a lower interest rate than your credit card or other debt has. If the rate of interest is higher, you will end up paying more to consolidate your debt than you would to just pay it off.
Thankfully, LoansConnect and Loans Canada both partner with reliable lenders with relatively low rates of interest. Using either website is both free and easy. There is no obligation to receive a list of lenders that suit your needs. So, you have nothing to lose! Head to LoansConnect or Loans Canada now to start your journey to financial freedom.
