Debt Consolidation Loans Newfoundland and Labrador

What is debt consolidation?

A debt consolidation loan is a loan that allows you to repay many other debts. For example, if you have three credit cards, you may be able to get a debt consolidation loan to pay off the credit cards, so that you only have one payment instead of three each month.

What are the advantages of a debt consolidation loan?

The advantages of a debt consolidation loan are:

	You replace many payments each month with only one payment, which should make it easier to Budget your cash each month.
	Your debt consolidation loan may have a lower interest rate than the rate you are paying on credit cards, so the loan should reduce your interest payments.
	With lower interest rates and/or extended terms, you may be able to reduce your total monthly payments.

Do I qualify for a debt consolidation loan?

To qualify for a debt consolidation loan in Newfoundland and Labrador you must meet the following:

	The bank will require a copy of your monthly Budget to determine if you can meet your loan payments.
	You must be working, or have a source of income to allow you to repay the loan.
	You may require a co-signor or collateral (such as a car or a house).

What is the next step in obtaining a debt consolidation loan in Newfoundland and Labrador?

To determine if you qualify for a debt consolidation loan, contact your banker or finance company. The major Canadian banks can be reached on their Bank web sites, or via the yellow pages.