Debt Consolidation Services in Toronto, Ontario
The purpose of debt consolidation is to use a new loan to pay off several liabilities and consumer debts, usually unsecured ones. This is done by taking multiple debts at high interest rates and combining them into one single loan with a much lower interest rate and having only one minimum monthly payment rather than several others. It is popular for consumers with several different types of debt, to use debt consolidation to reduce interest payments on credit card debt and other types of debt.
Unlock the equity in your home to save on high interest payments. This is done simply by paying off high interest debt with the equity from your home. Consolidating can significantly reduce unnecessary high interest payments which, in turn, saves you money. Our debt consolidation services are also a fantastic way to quickly rebuild your credit score.
Rebuild Your Credit
A debt consolidation loan is a popular tool among consumers to rebuild credit. The motive behind this is that if the principal is paid down faster [than it would have been without the loan] the balance is paid off sooner. The debt is then wiped off your credit report, and your credit score will start to increase significantly. Also, when you have several debts on your credit report it has a negative impact towards your overall score, especially if any of them are closer to their limit.
Using a home equity loan to service debt allows you to save considerably on high interest debt payments. Credit card interest payments on average are 22% and personal loans can be up to 40%. Our debt consolidation services cut these interest payments by more than half.
Pay Off Debt
Debt consolidation loans are most helpful for people who:
– Have multiple debts
– Owe $10,000 or more
– Are receiving frequent calls or letters from collection agencies
– Have accounts with high interest rates or monthly payments
– Are having difficulty in making payments
– Are unable to negotiate lower interest rates on loans
Once in place, a debt consolidation will reduce the interest being paid towards the debts and will lower the borrower’s monthly payments. It will also stop the collection agencies from calling.