Almost half (46%) of Canadians carry some type of non-mortgage-related debt. If you fall into this category, you could explore your options for Calgary debt consolidation, which is exactly what this article will discuss.
Whether it’s credit card debt, sudden car or home repairs, rising inflation, or any other financial crisis that has led you to seek help with your debt, debt consolidation could be a path forward.
This allows you to consolidate your debts into one monthly payment, making them easier to manage, reducing stress, and possibly saving you money on interest.
If you’re considering debt consolidation services in Calgary, this guide will walk you through how to find the right option for you, what to expect, and what to look out for.
Debt Consolidation in Calgary: What It Is and How It Works
With a debt consolidation loan, you combine multiple debts into one loan, paying them off with a single monthly payment. This can be useful if you have lots of high-interest debt, such as credit card balances, as a debt consolidation loan typically has a lower rate.
In the long term, this could save you money on interest payments and keep track of your repayment more easily.
If you live in Calgary, debt consolidation services are provided by financial institutions, credit counselling companies, or debt relief companies. These companies can design a financial plan based on your income, financial situation, and total debt amount.
3 Benefits of Debt Consolidation
Like any debt relief solution, debt consolidation has pros and cons.
These are three advantages of debt consolidation that appeal to many Canadians:
- Simple Payments: Keeping up with what you owe and to whom is challenging if you have several debts from different sources. With a consolidation loan, you just have to worry about one monthly payment.
- Potential Interest Savings: Debt consolidation loans usually have lower interest rates than credit cards or payday loans, often reducing the interest you pay over time.
- Debt Relief: You can escape the stress of juggling multiple creditors and monthly payments and focus more clearly on paying down what you owe.
Tips for Finding Debt Consolidation Services in Calgary
Finding the best debt consolidation option will require some research, but these tips will get you going on the right track:
1. Research Your Options
Start by exploring the different Calgary debt consolidations that are available to you.
Consolidated Credit Canada, Debt Relief Canada, and MNP LTDare three common choices.
- Consolidated Credit Canada is a top option, as a national not-for-profit credit counselling organization that operates in all provinces. It combines financial education with debt consolidation services for many Canadians, including Calgarians. You can find more information in this review.
- Debt Relief Canada, a company that has been helping Calgary residents with debt solutions since 2010 and offering everything from credit counselling to consumer proposals to debt consolidation loans, is one alternative.
- Another option is MNP LTD, which offers consumer proposals and informal debt settlements and aims to help people get back on their feet. They have over 200 locations across Canada, including in Calgary.
Take some time to review the offerings of the different companies and compare them with your financial situation.
2. Evaluate Your Financial Situation
Before applying for a debt consolidation loan, evaluate your current financial position. Do you have a good understanding of your debt balance, current interest rates, and monthly payments?
Credit counselling is a first-step resource if you are unsure of your next steps.
Counselling offers a review of your credit report, guidance on debt repayment, and a plan for debt consolidation. Credit counsellors will also help you decide if a debt consolidation loan is the best option for you.
Don’t miss this article next for more helpful information: 14 Best Debt Consolidation And Relief Programs/Companies in Canada (2024).
3. Look for Reputable Companies
Regarding debt consolidation, you will need a trusted provider to succeed in the long term.
Before you commit to any debt consolidation company, confirm that it has accreditation from bodies such as the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), the Office of the Superintendent of Bankruptcy, or the Chartered Insolvency and Restructuring Professional Qualification Program (CIRP).
You will also want to check that the company you’re considering has a history of positive client outcomes.
The debt consolidation company you choose should have a reputation for working successfully with individuals across all sectors, including debt relief for small business owners and start-ups just beginning their entrepreneurial journeys.
Check the Better Business Bureaus and your provincial or territorial consumer affairs office for complaints.
4. Understand the Debt Consolidation Loan Terms
Be sure you understand the terms of a debt consolidation loan before you take it out.
Are the interest rates, repayment periods, and fees to your advantage? Are there any prepayment penalties to look out for?
Some providers might offer you a loan with lower interest rates, but longer repayment terms could mean paying more interest in the long run. A consultant who knows what they are doing can structure the loan to benefit the customer.
You can learn about more Alberta debt relief and consolidation services here.
5. Seek Professional Advice
If you need help deciding which debt consolidation route is best for you, talk to a financial consultant or credit counsellor who can help you decide which option would work best for you.
Understanding the Different Debt Relief Programs in Calgary
Debt consolidation is just one of several debt relief options for Calgary residents. Others include:
- Consumer Proposals: This involves negotiating with your creditors to pay a certain percentage of your debt over a maximum of five years. Find out how to file a consumer proposal in Calgary here.
- Credit Counselling: Credit counselling services will assist with developing a debt management plan, including budget and money-management advice, credit counselling, and working with creditors to reach an agreement on debt repayment.
- Bankruptcy: When financial difficulties are insurmountable, and Canadians need a fresh financial start, they might file for bankruptcy. With bankruptcy, you must often liquidate your property to settle your debt. Debt consolidation is generally preferable, but this is an option for people who simply can’t get out of debt.
Take the Next Step Toward Debt Relief
For people in Calgary who are struggling with their finances, debt consolidation might be a sensible solution.
If you’re carrying credit card debt or student loans or just can’t seem to make ends meet, consolidating your debt can help make your payments more manageable and help you regain control of your finances.
Services, including Debt Relief Canada, Consolidate Canada, and MNP LTD, work with residents to devise a solution to successfully consolidate debt and get back on track to being debt-free.
Kelly Kennedy, CMA, CPA, MBA, holds an MBA from Queens University in Ontario and is currently a finance and accounting instructor. In addition to teaching, he regularly contributes to various publications and blogs, offering expertise on a wide array of Canadian financial and investment topics.
