Debt consolidation

A debt consolidation loan, when possible, is the best way to maintain a good credit record. At Groupe Nantel, we can help you find your best solution to solve your debt problems.

Couple preparing for a Debt consolidation

What is
a debt consolidation?

This debt relief solution usually refers to a consolidation loan to combine several debts into one. The main objectives of a consolidation loan include having only one debt payment per month and reducing the average interest rate. The interest cost reduction will help you improve your financial situation.

A debt consolidation loan is usually with a financial institution. Some lenders may require you to have an endorser or co-borrower to reduce their risk or even ask to have the loan secured by an asset, in the form of a second mortgage on your residence.

What are the advantages?

  • By avoiding filing for bankruptcy and a consumer proposal, your credit score will remain higher.
  • If you have sufficient equity in a property, you could obtain a competitive interest rate by either refinancing your property to pay off the unsecured debts or consolidating your debts with a second mortgage. 
  • It will be easier in the future to be approved for a mortgage or vehicle loan.

What are the steps?

  • Initial Assessment: During the initial assessment of your financial situation including a discussion about the advantages and obligations of the different debt relief solutions, we may conclude the debt consolidation should be tried first.
  • Financial professional: If you have a property, it would be relevant to consult with a mortgage broker to assess the possibilities of a mortgage refinancing or securing a second mortgage.  Alternatively, it may be best to meet a financial advisor at your main financial institution to apply for a consolidation loan.
  • Other solutions remain available: If the consolidation loan is not successful, you can contact us to re-examine the other solutions.

Additional info about debt consolidation.

Make a budget over a period of one to five years to show that you have enough financial capacity to meet the repayment agreement. Be sure to take into account irregular and unforeseen expenses.

If you are being presented with  an interest rate exceeding 14%, or if a co-borrower is required for the approval of the consolidation loan, you may want to consult a licensed insolvency trustee or financial advisor before accepting.

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Your financial fresh start
begins today.

Our advisors at Groupe Nantel are here to help you find solutions and be debt free.