Debt Consolidation Calgary

October 30, 2020 | Editorial Team

Debt Consolidation Calgary

If you live in Calgary, AB and you have debt, you’re not alone. Equifax Canada has stated that people living in Alberta have more debt compared to the rest of Canada. In Calgary, debt is an average of $29,789 per person. This is likely because once you’re in debt, it is hard to get out of it. That is why many people, especially in Calgary, AB, consider debt relief such as consolidation, debt settlement, or a consumer proposal instead.

In this article, we’re going to focus on consolidating your debt. We don’t want you to have to visit an insolvency trustee. Debt consolidation is when a person takes out a bigger loan to help pay off all of their smaller debts. The bigger loan typically has a lower interest rate, so it is easier to pay off and become debt-free.

Calgary, if you are considering debts consolidation, Loans Canada and Loan Connect are two great websites to consider. They are bothlending platforms that offer debt help. You will be connected to a lender that can work with your particular financial situation. Let’s look into both lending platforms in more detail, Calgary!

Loans Canada

One of the best options for finding debt relief in Calgary is Loans Canada. Loans Canada is not a lender, but a lending platform. It allows Canadians from any province or territory to search for a lender that meets their needs. Whether it’s debt consolidation or a personal, car, or business loan, Loans Canada can match you with the perfect lender. Even if you have bad credit, Calgary, Loans Canada can help.

Here are some of the pros and cons of using this lending platform.

Pros

  • Interest rates start low at 5.49% and go up to 25% depending on your credit history.
  • You get to choose the loan term, which ranges from 6 months to 60 months.
  • The application, approval, and deposit are all completely online, so you don’t even need to leave your house.
  • Once you are approved, you typically get your loan within 48 hours.
  • Loans Canada is great for big loans as the maximum amount they offer is $300,000.
  • Even those with a poor credit rating will be eligible for a loan with Loans Canada.
  • Loans Canada will organize all your options of lenders in a chart. This will help you to easily compare and contrast them to see which is the best for you.
  • Their website is user-friendly, easy to navigate and will provide all the information you need.

Cons

  • Only lenders that are partners of Loans Canada will be in your search results.
  • The worse your credit history is, the higher your interest rate will be as lenders will see you as a liability.
  • Not all of the lenders have the same terms and conditions. One may have early repayment fees while another doesn’t, for example.

Loan Connect

It is always best to receive as many quotes as you can to make an informed decision. To do this, you can also use Loan Connect. Loan Connect is another lending platform that matches Canadians in Calgary and the rest of Canada to lenders who offer loans such as debt consolidation loans.

Their maximum loan is $50,000, so if your debt totals more than that, Loan Connect may not be for you. If not, here are some other pros and cons to consider, Calgary.

Pros

  • The loan term is flexible and up to you. It ranges from 6 months to 60 months, depending on your needs.
  • Interest rates start as low as 4.6%
  • Eligibility requirements are not as strict as traditional lenders. Your debt must be less than 60% of your income, you must be a Canadian citizen, and be the age of majority in your province or territory.
  • Using Loan Connect is free.
  • You are not obligated to apply with any of the lenders offered to you so you can “shop around” for the best deal.
  • There are 12 different types of loans available on Loan Connect.

Cons

  • For those with debt that is more than 60% of your income, Loan Connect is not an option.
  • You will be charged a higher interest rate if you have a bad credit score.
  • The highest loan available is $50,000.

The Bottom Line

Almost three-quarters of Canadians have some type of debt from credit cards or loans. A big portion of those Canadians are in Calgary, AB. Having debt is nothing to be ashamed of, but it can be stressful.

If you’re not sure what kind of debt help you need, credit counselling is a good place to start for more information and to discuss your options. Credit counselling can help you get advice for whether something like a consumer proposal, debt settlement or a consolidation loan is the best option for your situation.

If you do want to consolidate your debt, Loans Canada and Loan Connect are great places to start looking for the perfect lender!