Click to learn more about debt consolidation

Before arriving at declaring bankruptcy, it is better to analyze all its options. Debt consolidation from De-Debt Homepage is a popular alternative to personal bankruptcy that reduces debt without spoiling your credit report. Consolidating your debts is, however, a solution that is not available to everyone.

What is debt consolidation?

Put simply, debt consolidation involves making a single loan from a financial institution in order to pool all of the debt and thus have only one monthly payment.

General acceptance criteria for banks

Before accepting your debt consolidation request, the bank will check the state of your finances. It will mainly rely on the following criteria:

  • Have a debt ratio of less than 40%.
  • Have a fairly good credit rating.
  • Have a stable job.
  • Demonstrate that it is possible to repay the loan while continuing to pay regular bills.

In addition, the bank will often ask:

  • Let a creditworthy endorser guarantee the repayment of the loan.
  • Let your credit cards be destroyed.

What Are the Benefits of Debt Consolidation?

In addition to avoiding bankruptcy, debt consolidation has several advantages, including:

  • A generally lower interest rate.
  • Simplified financial management with a single monthly payment.
  • Maintaining a good credit rating.

Warning and cons?

  • The interest rate (12% or more).
  • Does the monthly payment respect your ability to pay?
  • There is the risk of continuing to go into debt (new credit cards).

Before opting for debt consolidation, we invite you to contact us so that we can assess your situation. The evaluation is free of charge and completely confidential.

A consolidation or a proposal?

Do you know the consumer proposal? It is a repayment offer made to your creditors which allows you to reduce your debts by up to 70%. If debt consolidation is not for you or your bank refuses you, then the consumer proposal could be your best option!