Start Does consolidating your debt work

Does consolidating your debt work

Typically, the better collateral you can offer for a loan (banks call this security), the better interest rate you will get.

Each loan has its own interest rate and repayment terms.

Here are the most common ways people go about doing it these days in Canada: If anyone tries to sell you a debt consolidation loan or service that costs thousands of dollars in up-front fees, walk away. People pushing products like this are just trying to make money off you.

If you don't feel you have any other options, contact a non-profit credit counselling agency near you.

In the long run, the consolidation loan only puts them in a worse financial position because they run up new credit card and/or line of credit balances that they have to pay every month in addition to their loan payment.