Have you accumulated a significant amount of debt? Are you having trouble making your monthly payments? If so, debt consolidation could help you solve your financial problems. The licensed insolvency trustees at Bernier & Associates in Gatineau near Ottawa can assist you in consolidating your debt and help you get back on track. Our team has put together some information about debt consolidation and why you may want to consider it.
What’s debt consolidation?
Debt consolidation is when you combine multiple debts into a single monthly payment from one bank or financial institution. For example, you can combine your credit card debt, overdraft balances and payday loans into one easy payment. However, you can’t consolidate debt secured with collateral like mortgages and auto loans.
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Why use it?
Debt consolidation offers the following benefits:
You can qualify for a lower interest rate, which can help you pay off your debt faster
You can improve your credit score by making your monthly payment on time
You can easily manage your debt without the stress of multiple payments
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How to tell if debt consolidation is right for you
If you have a lot of high-interest debt, debt consolidation may be the perfect solution. However, this option isn’t right for everyone. In most cases, you must have a good credit history and a stable income. If you don’t meet these criteria, the bank or financial institution can refuse to consolidate your debts. If this is the case, you may need to turn to another solution like a consumer proposal. However, some lenders accept consolidation under certain conditions, such as adding collateral or requiring an endorser.
Debt experts
If you want to learn more about debt consolidation and find out if this solution is right for you, the team at Bernier & Associates can help. Our licensed insolvency trustees can help you get your finances under control, whether you live in Gatineau, Ottawa or elsewhere in Quebec. Contact us to book an appointment.