Why was I declined for a consolidation loan? I have a good income!
Financial Institutions look at many different factors when considering if you qualify for a consolidation loan. They look at income, employment history, total debt, assets, and, not surprisingly, credit history. Often where you have missed a few payments, or where your income is not consistent, a bank may consider those to be ‘red flags’. If you are going to apply for a consolidation loan, try to apply before your payments fall behind. Current payments will show that you are committed to paying down your debt, while looking for an easier way to make those payments. Not an option? Read on!
What interest rate is reasonable on a consolidation loan?
You will find many different rates, from many different lenders, when you are looking to consolidate your debt. When searching for a reasonable rate, keep in mind that if you have assets to offer as security, this can help to reduce the interest rate you will pay. In addition, your credit history will also determine what rates you are offered. Did you know you can make one inquiry per year without decreasing your score? Be sure that whatever loan agreement you are offered, you understand the total amount of interest paid and the total cost of credit, including fees.
I want to pay my debts, I just can’t pay the amounts they want! Can you help?
Yes! If you don’t qualify for a consolidation loan, or the interest rate you are being charged seems unreasonable, consider getting a second opinion from a Licensed Insolvency Trustee. Ask us about a Consumer Proposal to consolidate your payments into one manageable payment. While a Consumer Proposal is not a consolidation loan, it is a binding agreement between you and your creditors (banks, credit cards, student loans etc.) that allows you to pay what you can reasonably afford without going bankrupt. Contact us to arrange your free consultation to discuss your situation, and how a Consumer Proposal might work for you.
If you have applied for a consolidation loan and been declined, talk with us today. Let us outline your options for debt relief with manageable payments you can afford.