The levels of household debt in Canada are rising – Ottawa, the capital city of Canada, has not been left behind. There are so many families with financial trouble either as a result of poor financial management, living above their means, natural calamities and diseases, or any other reason. Irrespective of how you got into bad debt, if you feel your outstanding debts are getting out of hand, you need a debt relief option.
With debt consolidation in Ottawa, you will enjoy a reduced interest rate, lower monthly payments, and you have control over your income once again. If you have a good or excellent credit score, you have income, and collateral, consolidating your loans will be easy. However, if you have high-interest loans such as payday loans, bad credit history, and no collateral, consolidating your loans will be a challenge – most lenders may not approve your application. However, even with bad credit, you can still consolidate your loan – read on to learn how.
You need to consolidate your loans if you are already feeling the burden of your debts. If you have multiple credit cards, say three that need credit payments every month, you will pay very high-interest rates for the three cards. By so doing, you will feel the pinch of debt. Again, you might have to pay with more than half your monthly income leaving you with insufficient income for your monthly expenses. If this leaves you distressed, consider debt consolidation in Ottawa.
Other signs that you need to consider a debt consolidation option include:
If your monthly income is not enough to pay multiple debts, and meet your monthly expenses, consider the lowest cost debt consolidation option. Even if you can manage to pay the debts and still meet your monthly expenses, you can use debt consolidation in Ottawa, Ontario, to reduce the interest rates on loans so you can pay the loans faster.
When you need to consolidate your loans, there are two debt consolidation approaches – you can use debt consolidation loans in Ottawa or enroll in a debt consolidation program. The city of Ottawa has so many lenders willing to consolidate your debts with or without collateral.
A debt consolidation program is ideal when you cannot get approval for debt consolidation loans in Ottawa, or you do not want to take another loan. Here, you will work with a debt relief counsellor who will negotiate with your creditors to have your loans consolidates, and the interest rate reduced. While you will have managed your debt, a debt consolidation program will show on your credit report for a few years. But at least, you do not take a loan in this case. When enrolling in a program, only work with a licensed debt counsellor. Again, note that you will pay a fee to the counsellor like you would to a mortgage broker.
Debt consolidation loans in Ottawa are a better debt relief option compared to other debt-relief options. Here, you take one large loan – a loan equal to the total debt you owe creditors – and pay off all your debts. The loan you take can be:
It is challenging to find the right lender in a sea of lenders online. The best lender to consolidate your loan needs to be licensed. You can check whether a lender is licensed on Consumer Beware. Licensed lenders will follow Ontario’s Consumer Protection rules and regulations. Again the lender needs to be reputable.
Because there are hundreds of lenders offering debt consolidation in Ottawa, Ontario, it will take a lot of time to compare all of them one at a time. To ensure you are working with a licensed and reputable lender, check them out on Loans Geeks. On Loans Geeks, all listed lenders are licensed. The platform also compared lenders based on the interest rates they charge and their reputation. This way, you will have all the lenders in one place for easy comparison. Trust Loans Geeks to do the work that would take you days in a few minutes. Again, you can see other loan options such as payday loans on disability income.
While it is easy to get lenders for debt consolidation in Ottawa, Ontario, you have to be careful not to fall for predatory lenders. There are a lot of activities in Ottawa, it being the political centre of Canada. With so many activities and so many people, there are so many scammers online preying on your hard-earned cash. Some lenders will legitimately offer you good deals such as payday loans with no bank statement but some will offer to consolidate your loans only to charge you exorbitant fees. If you have a large loan, consider filing a consumer proposal with a licensed insolvency trustee.
You can consolidate your loans for unsecured personal loans and credit cards. Here, you take a large loan, equivalent to the sum of all your debts, and pay off all your debts. Then you will have one loan to pay in monthly installments.
This is a loan that you take to pay all your outstanding debts. The loan is equal to the sum of all your debts. Instead of paying multiple debts every month, you will pay one loan in monthly installments.
If you choose to consolidate your debts with a debt consolidation program, it will show on your credit report for a couple of years. However, when you consolidate your debts with a debt consolidation loan, you will build your credit every time you make monthly payments on time.
The application process might require you to present proof of residency, proof of income and employment details, a co-signer, and collateral. Some creditors will only need proof of income and proof of residency but banks might ask for collateral and a good credit score.
Without collateral, lenders will consolidate your debts based on your creditworthiness and your debt-to-income ratio. Some lenders might ask for a co-signer in place of collateral. You can also look for lenders who do not ask for collateral to approve your loan application.