If you live in Canada and can’t afford your monthly payments on multiple high-interest loans, your financial situation is untenable in the long term. Whether your debt comes in the form of overloaded credit cards or lines of credit, payday loans with high-interest rates, and even mortgage or auto payments, don’t despair. Realistic debt relief is still possible!
For those that feel their financial situation is out of control, a debt consolidation loan may be the perfect solution. Not only will the consolidation of debt reduce the interest rate you pay on what you owe, consolidation loans can also reduce the total amount you owe to your numerous creditors.
By combining all of your credit card debt (and other debts) into one pot, you’ll be able to have a lower interest rate and a lower stress level. Want to see if you qualify for a debt consolidation loan? Simply apply by clicking the button below!
With help from Credit Arch, you could have a lower monthly payment and an improved financial outlook in no time.
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The reason so many people trust CreditArch to connect them with the perfect lender is our commitment to simplicity, security and transparency, all in the service of providing great results for our clients.
What is a Debt Consolidation Loan Exactly?
Being in debt is never any fun. Not only is it a huge source of stress, having several outstanding high-interest debts and a monthly payment on your credit card beyond your ability to pay also reduces your ability to live and spend the way you want. That’s why consolidating your debt is a good idea. You’ll get debt relief, better interest rates than you would on a normal credit card, and you’ll start your journey to financial freedom sooner, freeing you up to spend your money how and when you want to.
A debt consolidation loan is essentially a debt repayment strategy. Once approved, Credit Arch will set you up with a financial partner that will merge all of your debts (consolidating them) into one single debt with monthly payments that make sense for your financial situation, and don’t get you stuck in a debt cycle that lasts for years.
In most cases, debt consolidation is used to bundle together high-interest debts, such as credit cards, payday loans, and other financial vehicles. Things like mortgages and auto loans mostly have lower interest rates, and thus would not be good candidates for a consolidation loan.
When Should I Choose to Consolidate My Debt?
Consolidating your debt is mostly about simple math. All you have to do is compare the interest rate you’re currently paying, and then compare it to the interest rate being offered by the company handling your debt consolidation. Is it higher, or lower than the interest rate you’re already paying on your credit card? If it’s lower, then you’re moving in the right direction!
Next, you’ll want to ensure that the loan amount being offered by the financial company is large enough to pay off all of the various high-interest loans and credit card debt in one shot. If you still end up with more than one monthly payment after debt consolidation, it’s likely that you’re not getting the debt relief you need.
What are the Major Benefits of Debt Consolidation?
There are four key ways that a debt consolidation plan can help you achieve a lower interest rate and reduce the pain of your current credit card debt.
First, a consolidation loan will simplify things by replacing multiple high-interest debt payments with one low-cost monthly payment plan. Second, the interest rate will be lower. Third, you’ll be able to pay off your debt much more quickly through debt consolidation. Finally, you’ll save money by eliminating the need to pay fees. While this isn’t always the case, generally speaking when you consolidate your loans, there should be no extra charges.
Debt relief is possible with Credit Arch.
Are There Any Drawbacks to Debt Consolidation?
If your goal is debt relief, being able to consolidate and pay your multiple debts and lines of credit into one easy payment plan is full of advantages in Canada. However, without the discipline and financial management skills to properly take on the project, you may end up deeper in debt than before.
That’s why it’s important to create a realistic budget plan and stick to it as a part of your debt consolidation plan. If you don’t think you can stick to a plan and stay on top of it, debt consolidation may not be the kind of help you need.
Another of the possible drawback to a loan like this is that it may be difficult to qualify for. Some of the highest-quality lenders and financial companies require a form of collateral to be approved. Without some kind of asset, you may be denied the loan you’re interested in.
Another roadblock may be an unacceptable credit score or credit rating. Financial companies often don’t want to take the risk of a debt consolidation plan for individuals with a low credit score, or if they do, they may charge an interest rate similar to what you’re already paying to cover their assumed risk.
Finally (and this relates to the first paragraph in this section), being able to consolidate your debt into one loan only works if you stop using the other accounts you’ve rolled into the new consolidated debt package. Believe it or not, some people lack the discipline to stick to the plan, and end up still using all of their previous credit mechanisms, leading them to be required to pay for those on top of the new consolidated debt loan. This kind of short-term thinking will get you into financial trouble in a hurry, leaving you in greater debt than before.
If you think it’s at all possible that you’ll continue to accrue more debt for yourself (as opposed to only paying down your current levels of debt) after you consolidate, this might not be an ideal plan for you.
What Sort Of Information Is Required to Consolidate My Debt?
At Credit Arch, we don’t need too much of your data to get started – just the basics. While every loan type is different, you’ll likely need:
Trust Credit Arch to Consolidate Your Debt
Don’t let your financial situation get out of control by just paying the monthly minimum across multiple lenders. Let Credit Arch simplify the process and improve your financial outlook today! If you’re in search of a debt consolidation loan, Canada has no better choice than Credit Arch to get the job done
Simply fill out the form below, answer a few questions about your financial situation, and we’ll do the rest.
Get your debt under control today!
Get Started With Credit Arch
Not sure where to start? Simply contact us and we can help you understand your options, or walk you through our simple process step by step.
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