What exactly is a debt consolidating loan in Canada?

a debt consolidation reduction loan is just a loan that takes care of multiple high-interest loans, auto loans, charge card balances, or credit lines all at once.

As an example, you combine everything you owe into one loan if you have four different debts to pay (two credit cards, one auto loan, and one payday loan) with various payment due dates and accumulating interest on all loans, a debt consolidation loan helps.

Sometimes, debt consolidation reduction loans are unsecured signature loans that do not require any security. In other cases, they’ve been guaranteed loans that are personal require collateral (in other words. automobile, home, etc.)

How come individuals get debt consolidation reduction loans? Continue reading