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Debt Consolidation in Ottawa

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.

Debt Consolidation in Ottawa: Signs You Need It

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:

  • You use credit cards to settle most of your monthly bills
  • You have lost a source of income
  • You need to take advantage of low interest rates
  • You have large bills such as school fees to pay

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.

Types of Debt Consolidation in Ottawa

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:

  • In the form of a second mortgage against the value of your home, also called a home equity loan. Bank and credit unions offered these loans but they will still consider your credit history before approving you for a bank loan.
  • A secured loan offered against the collateral you provide. You can get car loans, RV loans, motorcycle loans, or a loan with any other collateral based on how much loan you owe creditors. Most prime lenders in most Canadian cities will request for collateral.
  • Personal loans (unsecured) offered based on your creditworthiness and your debt-to-income ratio. To get unsecured personal loans from banks and credit unions, you need an excellent credit score and a reliable source of income. However, you can get these unsecured loans even with a not-so-perfect credit from peer-to-peer lenders online. Most lenders willing to offer you payday loans with no credit check will also consolidate your loans with bad credit.
  • If you have multiple credit cards, you can use a balance transfer credit card instead of taking a debt consolidation loan. This is one of the cheapest options for debt consolidation in Ottawa, Ontario. You will transfer all your credit card debts into one credit card. After transfer, you will pay very low interest rates or no interest rate at all for as long as the promotion lasts — typically about six months.

Trust Loans Geeks for Finding Debt Consolidation in Ottawa

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.

Conclusion

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.

5 Activities to Try After Getting Debt Consolidation in Ottawa

  1. Experience exciting activities at the National Arts Centre in Ottawa
  2. Take a river trip along the Ottawa River
  3. Attend exhibitions and have a look at great artistic work in the National Gallery of Canada
  4. Experience great adventure along the Ottawa River Valley
  5. Shop in the largest malls in downtown Ottawa

Map of Ottawa

Ottawa Travel Guide

Frequently Asked Questions

How does debt consolidation in Ottawa work?

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.

What is a debt consolidation loan in Ottawa?

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.

How does debt consolidation in Ottawa affect my credit?

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.

How do I apply for debt consolidation in Ottawa?

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.

How do I get a debt consolidation loan without collateral in Ottawa?

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.

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