Debt Consolidation Loans in Halifax

Overall, loan providers in Halifax tend to loan as little as $300 and as much as $50,000, which means you could possibly consolidate as much as $50,000 worth of debt.

In Halifax, each individual loan provider will have a different range of amounts of debt they will let you consolidate. Generally speaking, the amount you can borrow will depend on things like your credit score, your assets (if any), and your income.

In Halifax, there are a lot of forms of debt you can consolidate. Eligible forms of debt will depend on your creditors and will generally include things like:

• Credit card debt

• Unsecured personal loans

• Student loans not administered by the provincial or federal government 

• Car loans 

• Medical bills

Unfortunately, in Halifax there are some kinds of consumer debt you can’t consolidate. Debt that you can’t consolidate includes:

• Mortgages

• Government student loans

• Back taxes owed to the Canada Revenue Agency

The amount you could save depends on the interest rate specific creditors are charging you and the new interest rate you get with a consolidation loan provider.

In general, you can expect significant savings amounting to hundreds, if not thousands of dollars a year. That’s because the purpose of getting a debt consolidation loan is to combine all your outstanding debt from creditors into one bundle with a manageable interest rate rather than having multiple sources of debts that are each charging high interest on your amounts owing.

For example, let’s say you have $15,000 in credit card debt at an APR of 19.99% (a very common rate of interest for credit cards in Canada) and your monthly payments are $500. If you continue to make this monthly payment, it would take you 42 months to pay off the debt and you would end up paying $5,962 just in interest (that’s on top of the original $15,000 you already owe your creditor!).

That amount is greatly reduced when you get a debt relief loan. For example, if you get a debt consolidation loan with an APR of 10.49% and a payment schedule of about three years with the same monthly payment of $500, you would end up owing only $2,472 in interest over the course of the loan. That’s less than half of what you would pay in interest without a consolidation loan!

Every financial lender in Halifax has their own specific requirements when applying for a debt consolidation loan. Generally, you should meet the following qualifications: 

• Have a yearly income of at least $20,000 

• Have a credit score of 660 or higher

• Have a credit history that goes back for at least 12 months

If your credit score is below 660, there may still be debt consolidation loan options available. Sign up for Borrowell to see what loan options are available based on your credit score. 

Some debt relief loan providers may also require that you’ve never declared bankruptcy. There are other debt relief options (e.g., credit counselling) if you do not qualify for a debt consolidation loan based on your financial situation.

Searching online is one of the best ways to apply for a debt consolidation loan. Going online to search for lenders is a smart approach because you can compare the rates and terms from dozens of different lenders at the same time.

With Borrowell, you can sign up for free and easily compare debt consolidation loan options from many reputable Canadian lenders. You can compare interest rates and get an idea of how likely you are to get approved based on your credit score.

If you manage your loan payments responsibly, a debt consolidation loan can improve your credit score. Payment history makes up 35% of your score, and by managing your loan responsibly, you can improve your payment history over time. Improving your payment history will in turn improve your credit score. Just make sure that your loan provider reports your payments to a credit bureau.

You may be able to get a debt consolidation loan with bad credit. Each debt consolidation lender in Halifax has different qualification guidelines but there are usually some lenders that will provide loans to those with bad credit—though you’ll likely have to pay a higher interest rate. 

Not sure what you qualify for? Sign up for Borrowell to see what loan options are available based on your credit score.

In general, loan terms for debt consolidation loans in Halifax range from three months to five years. Each lender has different terms that often depend on the amount of debt you have and who your creditors are.

Other debt relief options in Halifax could be to get help from a professional debt counsellor, to arrange a consumer proposal, or consider declaring bankruptcy. 

A credit counsellor will make a repayment proposal to your creditors and negotiate with them directly on your behalf for debt relief. You’ll make payments to the credit counsellor, which will include the fees for their service. Credit counselling appears on your credit history and will remain for up to two years.

There are lenders in Halifax who specialize in offering consolidation loans to people who have issues, such as low income or bad credit histories. It’s always worth doing some investigating to see what providers have more flexible application guidelines. There are other steps you can take to pay off debt on a low income. 

Another option would be to consider transferring your credit card debt to a low-interest credit card. You may also want to look into moving your debt to a credit card that has a good balance transfer offer, which usually includes a period of reduced interest.