Debt Consolidation Loans BC

October 21, 2020 | Editorial Team

Debt Consolidation BC

Collectively, Canadians in British Columbia and all over the country owe over $2 trillion in debt. So, it’s no surprise if you have your own sizeable debt. Many Canadians have a variety of debts. It could be from credit cards, going to school, or buying a house. Making multiple monthly payments on all these debts can be irritating. So instead, why not consider consolidating debts?

Debts consolidation is when a borrower takes out; big loan or lines of credit. This can then be used to pay off all their debt. The borrower will then have one single monthly payment to pay off that loan or line of credit compared to paying off all of their different avenues of debts.

Many people are hesitant to consider consolidation because they are worried about how it will impact their credit score. It will lower your credit score a bit, but not as heavily as something like bankruptcy would. Let’s look closer at two companies that can help you find the perfect debt consolidation loan, British Columbia!

LoansConnect

Traditionally, you would have to contact multiple banks or lenders to discuss your debt consolidation options. With LoansConnect, however, you will have all your debt consolidation options laid out for you. LoansConnect is a search engine for consolidation loans (as well as other loan types). You just input some personal and financial information and the amount/type of loan you need. It has some of the best loan companies in Canada.

Then, LoansConnect will show you all of their lenders that meet your requirements. They partner with lenders that offer loans up to $50,000. They often offer lower interest rates as well. This will help make your monthly payment to pay off your debts much easier.

Pros

  • LoanConnect lenders offer fair interest rates, starting as low as 4.6%.
  • It is also easier to get a lower interest rate, as LoanConnect works with a wide range of lenders.
  • You can choose how long your payment term is, ranging from 12 to 60 months.
  • Canadians with bad credit can still apply for a loan, as no minimum credit score is necessary.
  • Easier to get a higher loan, as LoanConnect offers loans anywhere from $500 to $50,000.
  • The entire application and approval process is done online.
  • Lenders tend to approve borrowers within the day. So, you can get your loan to consolidate your debt within 12 hours.

Cons

  • Regardless of your credit score, if you have a lot of debt, LoanConnect may not be the option for you. To be approved, your debt has to be less than 60% of your income.
  • You will only be able to see lenders that LoanConnect partners with.
  • LoanConnect is a search engine, rather than a lender.

LoansCanada

LoansCanada is similar to LoansConnect. It is also a search engine for loans. LoansCanada also allows Canadians to search for the perfect lender. Once you put in your personal and financial information, LoansCanada will show you a list of lenders who can offer you a debt consolidation loan.

You will also be able to see reviews on the lenders from past borrowers. This will help you pick the perfect lender even easier.

Here are some of the pros and cons of getting a debt consolidation loan through LoansCanada.

Pros

  • Big loans are available, as you can get up to $300,000 with LoansCanada.
  • Canadians with any credit score can apply.
  • Low-interest rates are available, often starting at 4%.
  • You can get a loan term of anywhere between 3 to 60 months.
  • There is a wide range of loans available on LoansCanada. If you need personal loans, car loans, or business loans, LoansCanada can help.
  • Borrowers often receive their money within 48 hours.
  • Searching for debt consolidation loans and applying for them is all done easily online.

Cons

  • You may have to pay a higher interest rate if you have bad credit.
  • LoansCanada is not a lender, rather a middleman, connecting Canadians with a lender.
  • Your search on LoansCanada will only bring up lenders they partner with.

The Bottom Line

Does having only one monthly payment of your debts, rather than multiple ones sound appealing to you? Debt consolidation may be the way to go, BC! The sad reality is that most people have a variety of debt to pay off, whether it’s from a credit card, student loans, or other types of loans. It’s especially prevalent in cities like Vancouver. Keeping up with each monthly payment can be hard and overwhelming as the interest piles up.

Debt consolidation is a good option to help you become debt-free faster. This is especially true if you get a loan from LoansConnect or LoansCanada. They can help pair you with the perfect lender. Just ensure the interest rate you accept is lower than that of your current debt. If it’s higher, you will end up paying more in interest to consolidate your debt than you would, had you not consolidated.

Start your journey to being debt-free today by heading over to LoansConnect or LoansCanada and applying for a debt consolidation loan.