How Does Debt Consolidation Loan Work Debt consolidation loans are usually unsecured but there is an option to add outstanding balances to your mortgage provided that there is enough equity.
The main difference between both is the fact that your home serves as collateral.
Borrowers who opt for consumer proposal work with trained and certified professionals, and counseling is usually confidential and free.
This is also an option to avoid bankruptcy and an alternative to debt restructuring, negotiation with creditors, and other solutions.
Customers are offered different debt solutions and financial advice on marriage and money issues, planning for retirement, ways to rebuild and build credit, how to consolidate and manage debt, and a lot more.
The Credit Counseling Society offers debt help and tools to use credit in a wise manner and avoid major debt problems.Borrowers no longer receive multiple calls from financial institutions and enjoy an affordable monthly payment.They are offered debt management and budget information for free and learn how to cope with stress.Major financial institutions such as TD Canada Trust, the Royal Bank of Canada, and others offer consolidation loans to their customers.RBC, for example, offers the option to use a loan or line of credit to consolidate two or more loans and credit cards to benefit from a reduced interest rate.The main downside is that unsecured loans come with a higher interest rate because they involve more risk than unsecured loans.