Canada debt: Consolidation loans and debt relief for Canadians

A debt consolidation loan makes money management easy

Feeling overwhelmed by multiple bills? Looking for a loan for credit card debt? Reduce your debt, get your credit back on track and find relief with a consolidation loan from Fairstone. Our Lending Specialists will help you tackle debt head on with customized debt solutions.

How to get a debt consolidation loan

Ready to pay off debt and simplify your life? Here’s how to consolidate debt in three simple steps:
  1. Request an online loan quote – no obligation, no impact to your credit score.
  2. A Fairstone Lending Specialist will recommend a customized solution to help you pay off your debt. 
  3. Visit your branch to finalize the application and have your loan as soon as today!

Consolidate debt

Experience debt relief today with a loan for debt consolidation. A debt consolidation loan can help you manage multiple bills and get out of debt faster with one simple monthly payment.

Loans for credit card debt

Credit card loans are used to consolidate debt owed to multiple credit card companies. A loan from Fairstone can help you consolidate your credit card debt, leaving your finances easier to manage.

Bill consolidation loans

Combining unpaid bills such as hydro bills, phone bills and credit card bills can bring you peace of mind. Get back on track by consolidating past-due bills into one simple payment.

Get out of debt and experience debt relief today

Many Canadians ask themselves, “How should I manage my debt?” If you’re in this situation, consolidating your debt may be the answer.

What can I use a debt consolidation loan for?

  • Pay off credit card debt
  • Pay off multiple bills at once
  • Get your finances back on track

Interested in learning more? We’ve answered your top questions about consolidating debt in this helpful article.

A loan from Fairstone can help you experience debt relief, but also give you peace of mind knowing you're working with a responsible Canadian lender. Consolidate your debt today – start with a loan quote.

More on Canada debt relief: We have lots of resources to help Canadians learn how to manage their debt, including articles with information on debt management. Visit our blog to learn more about debt to income ratio in Canada, managing debt, tips on how to get out of debt and Canada debt solutions.

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David’s story

David needed to get his truck ready for winter, but money was tight. On the advice of a friend, he visited his local Fairstone branch. Working with a Lending Specialist, David learned that not only could he get the money for his truck, but he could also consolidate his credit card debt and save hundreds of dollars a year. David left his branch feeling relieved, with an affordable personal loan and greater control over his debt.

This story is based on a typical customer situation. 

Canada debt relief: Daniel’s story

Fairstone can help you get the money you need to pay off debts and combine several bills into a single, affordable loan. Learn how Daniel saved hundreds of dollars a month and decreased the time it would have taken to repay his debt with a consolidation loan.

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How much money do you qualify for?

GET AN INSTANT LOAN QUOTE

Why Canadians choose Fairstone personal loans

  1. You can get a quick, no-obligation loan quote by answering a few simple questions.
  2. You’ll receive one-on-one service from a knowledgeable Lending Specialist.
  3. Choose from our flexible, affordable payment options and benefit from fixed rates.
  4. You can change your mind and cancel an unsecured personal loan within 14 days.

Questions about debt consolidation? We have you covered – keep reading to get the answers to your top questions.

 

What are the benefits of a bill consolidation loan?

The main benefits of a bill consolidation loan are a simplified payment schedule, lower interest charges and the possibility to pay off debt faster.

Here’s a bit more detail about the top three benefits of a bill consolidation loan:

  1. Simplified payment schedule: Since you can consolidate multiple bills into a single loan, you’ll reduce the number of payment deadlines you have each month. By only making one simple monthly payment, it makes it easier to stay on top of your payment schedule.
  2. Lower interest charges: A manageable repayment plan will help reduce the chance of you forgetting or missing a payment. You’ll avoid incurring additional interest charges which will save you money over the course of your loan.
  3. Pay off debt faster: Missed payments and incurred interest can make it longer to pay down your debt. But since a consolidation loan is designed to set you up with a payment schedule you can manage, you’ll be more likely to stay on top of payments. Over time, this should result in you paying off the debt in the timeframe you and your lender have discussed (and sooner than you would have if you didn’t consolidate).

Can you tell me how to consolidate debt?

We recommend these 5 steps to consolidate debt:

  1. Make a list of your debt: Write down all the different bills, loans or other debt you need to pay off and add up the total debt you have. This will let you know much money you’ll need to borrow to consolidate all your debt.
  2. Get an online loan quote: Try Fairstone’s online loan quote to find out how much money you could qualify for, and what your payments might be. No obligation, no impact to your credit score.
  3. Speak with a Lending Specialist: After you receive your quote, a Lending Specialist will be in touch over the phone. They’ll ask a few questions about your debt repayment goals so they can recommend the right loan option for you.
  4. Choose a payment option that works best: Choose whether you want to make biweekly, semi-monthly or monthly loan payments to pay down your debt. Check out this article to learn the pros and cons of each payment option.
  5. Finalize the application in branch and consolidate debt as soon as today: Once your application is complete, you could have your loan the same day you apply. Use your consolidation loan to pay off your debts, then start making payments only to your new loan.

What is the best type of loan to pay off debt?

We recommend using a secured personal loan to pay off your debt. Secured personal loans allow you to access more money (up to $30,000 compared to only $20,000 with an unsecured loan), which is ideal if you’re consolidating high credit card or loan balances. Plus, secured loans come with a lower interest rate and more affordable payments allowing you to reduce the amount of interest you’ll pay on your debt overall.

If you’re not a homeowner, or want the flexibility of paying off your loan at any time, an unsecured loan is a better option (our unsecured loans have no pre-payment penalties). You can borrow up to $20,000 with an unsecured loan, and will still benefit from affordable payments that fit your budget.

Interested in learning more? Check out our in-depth comparison of secured vs. unsecured loans.

Is credit card consolidation the best way to get out of debt?

You likely want to consider credit card consolidation if you’re consistently only making minimum payments on your credit card balance. If you’re wondering why making minimum payments is not ideal, take a look at your credit card statement. There should be a section that tells you how long it will take to pay down your balance if you only continue to make the minimum payments. On top of this, consistently carrying a high credit card balance can negatively impact your credit score, and it increases your debt to income ratio. Typically, lenders favour a debt to income ratio that is less than 36%. A debt to income ratio any higher than this could make it difficult for you to qualify for credit.

When you consolidate credit card debt with a personal loan, the balance becomes a type of installment loan rather than revolving credit. The difference between the two is that your consolidation loan will have a set payment schedule each month, and there is an end date when the debt will be paid off. Both you and your lender will agree upon this and it is referred to as the loan term.

In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.

TALK TO YOUR LENDING SPECIALIST TO LEARN MORE