What is debt consolidation?
A debt consolidation loan is a loan that allows you to repay many other debts. For example, if you have three credit cards, you may be able to get a debt consolidation loan to pay off the credit cards, so that you only have one payment instead of three each month.
What are the advantages of a debt consolidation loan?
The advantages of a debt consolidation loan are:
- You replace many payments each month with only one payment, which should make it easier to Budget your cash each month.
- Your debt consolidation loan may have a lower interest rate than the rate you are paying on credit cards, so the loan should reduce your interest payments.
- With lower interest rates and/or extended terms, you may be able to reduce your total monthly payments.
Do I qualify for a debt consolidation loan?
To qualify for a debt consolidation loan in Manitoba you must meet the following:
- The bank will require a copy of your monthly Budget to determine if you can meet your loan payments.
- You must be working, or have a source of income to allow you to repay the loan.
- You may require a co-signor or collateral (such as a car or a house).
What is the next step in obtaining a debt consolidation loan in Manitoba?
To determine if you qualify for a debt consolidation loan, contact your banker or finance company. The major Canadian banks can be reached on their Bank web sites, or via the yellow pages.