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Get Rid of Debt for Good in the New Year

Fairstone

Nov 16, 2021 4 min read

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Fairstone debt consolidation loan
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    For this blog, we teamed up with our partners at Fairstone, a responsible Canadian lender for almost 100 years.

    There’s no better feeling than a fresh financial start. If you’ve had trouble getting rid of debt in the past, it might be time to consider a different approach: debt consolidation.

    With debt consolidation, your existing debts are combined (credit card balances, unpaid bills, loans, etc.) and then paid off using a consolidation loan. Your outstanding balances are zeroed, and rather than managing multiple payments and payment schedules, you’re left with a single loan and one monthly loan payment.

    How much debt can I consolidate?

    With Fairstone, you can take out a personal loan between $500-$50,000 to consolidate debt. For higher debt amounts, you can speak to a Lending Specialist online or at your local Fairstone branch. And there’s good news: if you take out a debt consolidation loan from Fairstone before November 30, 2021, you won’t have to make a loan payment until 2022.*

    Get a Loan Quote from Fairstone

    Ready to consolidate your debt? Completing a loan quote won’t impact your credit score and there’s no obligation to take out the loan. In addition to finding out how much money you could qualify for, you can find out what your loan payments might be.

    Get a Loan Quote

    Will I save money with debt consolidation?

    When you pay off outstanding debts with a consolidation loan, not only will you experience the relief of one manageable loan payment and a fresh start to your finances, but you could also save money. Consolidating debt means you’ll:

    • Bid goodbye to accruing interest charges, which are tacked onto your balance owing each month

    • End late payment fees, which also increase your balance monthly

    • Possibly take years off your repayment schedule – especially if you’ve been making minimum payments on a revolving credit product like a credit card – saving you the costs of borrowing

    Before a debt consolidation loan

    For example, let’s say the total amount of debt you’re carrying is $18,500 – but each bill has its own interest rate, payment amount, payment deadline and time to pay off.

    ValueCredit card 1Credit card 2Personal loanRetail store financing
    Interest Rate19.99%19.99%31.99%29.99%
    Value: Interest Rate
    Credit card 1
    19.99%
    Credit card 2
    19.99%
    Personal loan
    31.99%
    Retail store financing
    29.99%
    Balance$7,500$5,000$4,000$2,000
    Value: Balance
    Credit card 1
    $7,500
    Credit card 2
    $5,000
    Personal loan
    $4,000
    Retail store financing
    $2,000
    Initial Monthly Payment**$225$150$174$60
    Value: Initial Monthly Payment**
    Credit card 1
    $225
    Credit card 2
    $150
    Personal loan
    $174
    Retail store financing
    $60
    Total DebtTotal Monthly PaymentMonths to Pay Off
    $18,500$609430
    Total Debt: $18,500
    Total Monthly Payment
    $609
    Months to Pay Off
    430

    After a debt consolidation loan

    With consolidation, you’ll take out a loan for $18,500, pay off the old debts, and are left with one monthly payment at a set payment amount each month – less to remember, and the old debts are cleared away.

    ValueFairstone Debt Consolidation Loan
    Interest Rate19.99%***
    Value: Interest Rate
    Fairstone Debt Consolidation Loan
    19.99%***
    Balance$18,500
    Value: Balance
    Fairstone Debt Consolidation Loan
    $18,500
    Fixed Monthly Payment $345
    Value: Fixed Monthly Payment
    Fairstone Debt Consolidation Loan
    $345
    Total DebtTotal Monthly PaymentMonths to Pay Off
    $18,500$345120
    Total Debt: $18,500
    Total Monthly Payment
    $345
    Months to Pay Off
    120

    In the example here, you could save $264 a month and be debt-free in half the time it would take without a consolidation loan.

    What credit products can be used for debt consolidation?

    You can use a variety of credit products to consolidate debt, including:

    • Unsecured personal loan – An ideal loan for borrowers who don’t own a home, or who are looking for flexibility to pay off their debt consolidation loan any time. At Fairstone, unsecured personal loans range from $500-$25,000. 

    • Secured personal loan – Ideal for homeowners looking to borrow money at a lower interest rate. At Fairstone, secured personal loans range from $5,000-$50,000. 

    • Line of credit – If you have room available on your personal or home equity line of credit, you can use these credit products to consolidate outstanding debt. However, since a line of credit is open-ended (no loan term) and a revolving credit product (with only minimum payments required), you will not benefit from the stable payment structure of a personal loan.

    If you’re looking to get rid of debt for good in the New Year, particularly if you’ve found debt repayment to be challenging in the past, this is your year to consolidate debt. Break cycles of minimum payments and begin to build your new financial future. Plus, if you take out a debt consolidation loan from Fairstone before November 30, 2021, you won’t have to pay until 2022.

    Apply for a Fairstone loan

    Ready to get started? Apply for a Fairstone loan in 3 steps:

    1. Get a loan quote

    2. Find out how much money you could qualify for in minutes

    3. Have your money as soon as today and don’t pay until 202

    Completing a loan quote won’t impact your credit score and there’s no obligation to take out the loan. In addition to finding out how much money you could qualify for, you can find out what your loan payments might be.

    Get a Loan Quote from Fairstone

    Ready to consolidate your debt? Completing a loan quote won’t impact your credit score and there’s no obligation to take out the loan. In addition to finding out how much money you could qualify for, you can find out what your loan payments might be.

    Get a Loan Quote

    *No payments until 2022 applies only to loans booked on or after November 27, 2021 in Quebec – a 35-day payment deferral offer – and on or after November 17, 2021 in the rest of Canada – a 45-day payment deferral offer. 2022 begins January 1, 2022. Interest begins to accrue from the date the loan is booked at the interest rate disclosed in the loan and is not waived.

    **Illustration only. Monthly payments shown are minimum payments. Payments would change over time based on balance and payment history.

    ***Rate and amount apply to secured personal loans. Rates may vary. Complete a loan application for personalized results.

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    Fairstone is one of Canada's leading non-bank lenders. Faistone provides responsible lending solutions for near-prime borrowers. Fairstone, including through its predecessors, has close to a 100-year history of providing Canadians with access to responsible credit.

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