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10 Reasons Why a Debt Consolidation Program Works

by:
Helen Ramlal

Getting debt-free is on the minds of many people these days. One popular method is debt consolidation.

Banks and credit unions offer debt consolidation loans where all of your debts are combined into a single, easier to manage account and at a (hopefully) lower monthly interest rate—otherwise, what’s the point of a consolidation loan if you’re paying the same interest rate or higher? The consolidation loan pays off all of your creditors, so you just have to worry about paying back that one loan by making your monthly payments to your lender. Whatever you do, do not default on your payments! This can easily put you back into debt trouble… fast!

When you’re done making all of the payments on your consolidation loan, you’re officially debt-free. A seemingly perfect solution, right? But there is a problem…not everyone qualifies for these loans.

Why is that? It may be due to a poor credit rating or credit score. Or perhaps the bank is unwilling to take on another institution’s debt, or maybe the person applying for the loan has inconsistent income, etc. There can be any number of reasons.

If you are declined at the bank, there is still help available. You may want to consider debt consolidation through Credit Canada’s Debt Consolidation Program—a shining example of a solution that has helped thousands of Canadians over the last 50 years. Here are the top 10 reasons why it works:

  1. Your credit rating is not a factor. Whereas banks require a good/great credit rating in order to approve you for a consolidation loan, a Debt Consolidation Program has no such requirement. You will receive help regardless of your credit rating.

  2. Interest charges will drop to 0% with many creditors. Our clients tell us that it is the interest charges and other fees that hold them back from paying down their debt.

  3. A fixed and affordable payment. On your own, it may be a challenge to become debt-free when you are dealing with multiple creditors. A single consolidated payment offers true simplicity.

  4. No more collection activity. Once there is a written plan in place with your creditors, the calls and the letters will stop.

  5. Completion date. You will know exactly when you will be debt-free so that you can start mapping out your financial future.

  6. Money management and budgeting help. We make sure your budget remains balanced, so that payments can be made. If not, we explore other options.

  7. Financial goal-setting. Short-term and long-term goals are key components that are included in your financial plan.

  8. Rebuilding credit and credit score tracking. When you are finished your program, we will ensure that you build upon what you have learned.

  9. Direction to other financial resources. We share information with our clients through review appointments, as well as our blogs, regarding ideas, programs, and other resources from partner organizations that will help improve their financial lives.

  10. Watchdog updates/cautions/warnings. Credit Canada has always been highly vocal and visible through the media in targeting predatory lending practices and exposing companies offering “help” for astronomical fees. We care about the mounting debt crisis in Canada and will call out any scheme aimed at taking advantage of the public.

The value of debt consolidation cannot be overstated, and the best part about a debt consolidation program is you can eliminate your debt without taking on more debt—makes sense, right? Plus, financial institutions are unlikely to sit down with you to create a detailed budget that will include daycare, medical expenses, pet food, clothing, lunches and gifts. But we do that and much more.

So, if you’ve been declined or just looking for a second opinion, you should call us at 1.800.267.2272. Every appointment is free, whether in-person or by phone.

What we know for sure: Our ten reasons will work for you.

Credit Buliding Counselling Session

Topics: Debt Consolidation Programs

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