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.
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:
If you feel like your debts are running out of control, you need to consider 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.
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.
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.
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.
Debt consolidation involves taking one large loan to pay off all your outstanding debts, so all you pay is one loan in monthly installments.
This is a loan that pays off all your debts.
Debt consolidation helps you build your credit if you make payments on time. Defaulting on payments will damage your credit history.
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.
Look for a lender who does not need collateral or provide a co-signer in place of collateral.