If you’re searching online for “bad credit debt consolidation loans canada,” you’re not alone. Excessive household debt is a growing problem in Canada, with the average Canadian owing more than $167,000 as of Q3 2023, according to the latest Finder Consumer Sentiment Tracker (CSTQ3) survey by Pollfish. And while there’s such a thing as good debt — like smart student loans that help you get an education or affordable mortgages to work towards homeownership — bad debt can hold you back from the goals you have for your life and career.
Overcoming Financial Hurdles: A Guide to Bad Credit Debt Consolidation Loans in Canada
A debt consolidation loan is a type of personal loan that’s used to pay off multiple debts and combine them into a single, monthly payment. Typically, unsecured debts such as credit card debt and payday debt are eligible for debt consolidation. However, a debt consolidation loan can also be used to pay off secured debt such as a vehicle or home mortgage.
It’s possible to find a bad credit debt consolidation loan with a credit score below 700, though you may need to pay a higher interest rate. One option is to use an online loan broker, such as LoanConnect, which matches you with lenders based on your unique profile. Another is to apply for a personal loan from an established alternative lender, such as Spring Financial or Upstart. Alternatively, you could seek a cosigner or offer collateral, which can increase your chances of approval, and help you qualify for a lower interest rate.