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Debt Consolidation in Saskatchewan

The Canadian Province of Saskatchewan has been referred to as the home of consumer debt troubles thanks to the rising consumer debt levels. The economy of this province has seen better times. Today, most residents of Saskatchewan are struggling with debt, with more than 56 percent of households having debts of more than $20k. While there are other struggling provinces, such as Alberta, that have higher debts, residents of Saskatchewan need help to manage their debts.

While some people can meet their monthly payments, some are not so lucky and end up defaulting on payments. Small loans with a high-interest rate, such as payday loans, coupled with credit cards, can get you into a debt cycle. One of the options to get you out of debt is debt consolidation in Saskatchewan. This article is a guide on the debt consolidation option in Saskatchewan.

Debt Consolidation in Saskatchewan: Signs You Need It

For starters, there are many benefits to consolidating your loan. You will get a lower interest rate, you will pay less in monthly installments, and you will have the chance to build your credits. With less monthly payments, you can manage your money better and get out of debt for good. However, debt consolidation is only ideal when you have small personal loans and credit cards. Large loans and secured loans, such as car loans, might need other debt relief options.

Even when you can comfortably make credit payments every month, it is still essential to consolidate your loans to get a low interest rate and maybe pay your loans fast. Signs that you need the lowest cost debt consolidation option include:

  • You use credit cards to pay most of your bills because your income is not sufficient
  • You have more than two outstanding debts that need payment every month
  • The debts are stressing you and creditors are threatening to take action
  • You need to take advantage of low interest rates or credit card promotions
  • You have financial trouble, and you are considering another bank loan or selling your property

If you feel like your debts are running out of control, you need to consider debt consolidation in Saskatchewan.

Types of Debt Consolidation in Saskatchewan

With the majority of households struggling with debt, there are so many creditors willing to consolidate debts in the province’s largest city of Saskatoon and other areas. There are also two different debt consolidation approaches to help you get out of debt. You can take a debt consolidation loan – this is one large loan that pays off all your debts. If you do not want a loan, you can enroll in a debt consolidation program where a professional negotiates terms of debt consolidation with your creditors.

A loan is the safer option because it will not show on your credit history. If you choose to take a loan, you will have two options – secured and unsecured loans. Secured loans require collateral and might come in the form of a second mortgage, called a home equity loan, based on the value of your home.

  • Secured Loans: These are given by prime lenders such as banks and credit unions. Unlike subprime lenders such as peer-to-peer lenders, the eligibility criteria for banks are strict. Here, you will need collateral to qualify for a loan. Some banks, however, might request for a co-signer in place of collateral.
  • Unsecured loans: These are personal loans offered based on your debt-to-income ratio and your credit score. Some lenders may only consider your income and not your credit score, such as those who offer payday loans with no credit check. If you take unsecured personal loans from banks, you need to have a reliable source of income and have a good or excellent credit score.
  • Balance Transfer Credit cards: If you have three credit cards that you pay monthly, you can transfer the debts in them into a balance transfer credit cards. These are credit cards offered by banks that allow you to transfer debts from other credit cards at very low or no interest rates. Though you will have to pay a debt transfer fee or about 3 percent, you can repay the cards in full before the promotional period ends.

Whichever option you choose, ensure that the interest rate on the loan is reduced. Again, only go for a licensed lender. If you have a loan of $250,000 or more, lenders may not approve your debt consolidation application even with a mortgage broker. This is especially so if your income is low. In such a case, you might need to file a consumer proposal with a Licensed Insolvency Trustee who will get you out of financial trouble. Before you consider a consumer proposal, however, try out online lenders, including those who offer guaranteed payday loans in Canada.

Trust Loans Geeks for Finding Debt Consolidation in Saskatchewan

Loans Geeks is a platform that compares lenders in the Canadian Prairies and other regions in Canada. On the platform, you can see lenders licensed to operate in Saskatchewan, lenders with the lowest rates, and lenders willing to consolidate your loans without a credit check. You can also see other loan options such as payday loans on disability income. Loan Geeks vets lenders, so you don’t have to.

Conclusion

It is essential that you only consolidate your loans with a licensed lender. If you cannot get approval for debt consolidation loans even from lenders who offer payday loans with no bank statement, consider a debt consolidation program.

5 Activities to Try After Getting Debt Consolidation in Saskatchewan

  1. Take a river trip to the North Saskatchewan River
  2. Go Fishing
  3. Go on a hunting trip
  4. Attend of the exciting events in Saskatchewan
  5. Join in on one of the Prairie River Cruises

Map of Saskatchewan

Saskatchewan Travel Guide

Frequently Asked Questions

How does debt consolidation in Saskatchewan work?

Debt consolidation involves taking one large loan to pay off all your outstanding debts, so all you pay is one loan in monthly installments.

What is a debt consolidation loan in Saskatchewan?

This is a loan that pays off all your debts.

How does debt consolidation in Saskatchewan affect my credit?

Debt consolidation helps you build your credit if you make payments on time. Defaulting on payments will damage your credit history.

How do I apply for debt consolidation in Saskatchewan?

Apply from a licensed lender who might ask for collateral, co-signer, proof of income and employment details, and proof of residency, among other details.

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

Look for a lender who does not need collateral or provide a co-signer in place of collateral.

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