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Best Location for a Debt Consolidation Loan in Ontario

By Debra Pangetsu

A lot of people are searching for the best location for a debt consolidation loan in Ontario. So we’ve laid out a quick guide here ranking the options in the order we would suggest you look at them. With each option we highlight the major pros and cons that you’d probably want to know about.

1. Your Local Bank or Credit Union

The best location to get a debt consolidation loan in Ontario is from your local bank or credit union. The advantage of working with a bank or credit union is that they offer the lowest interest rates on loans. The disadvantage of working with these folks is that they will usually require collateral for the loan (an asset to guarantee the loan in case you aren’t able to pay it back). If you don’t own a vehicle or have equity in your home to offer as security for the loan, then they may request a guarantor: someone with a strong financial picture that is willing to co-sign your loan and guarantee it.

How to Find the Best (or Worst) Location Near You

If you’re looking for the very best physical location to get a debt consolidation loan at, you can search for banks or credit unions on Google or Yelp and look at the reviews. However, a more insightful way might be to search the Better Business Bureau for “Bank” or “Credit Union.” You can then sort the results by their letter rating or their distance from you. Looking at the letter grade each location is given along with the number of complaints can help you figure out which location you think is the best.

2. A Reputable Online Lender

If there are some online loan companies such as Borrowell that can offer loans at a reasonable interest rate. However, we don’t like to recommend any company because a lot of people who apply for online loans will end up paying a credit card sized interest rate or higher. It’s pretty normal for online loan companies to charge people interest rates around 30% to 50%. It’s going to be extremely difficult to move forward paying these kinds of interest rates. Even consolidating your debt at a credit card interest rate – or something close to it – really isn’t going to help you much. If you don’t qualify for an interest rate from an online lender that is significantly lower than your credit card interest rate, consider the next option below.

3. A Local Non-Profit Credit Counsellor

If you’re really struggling with your debt and really need to consolidate, get a break on the interest – or something – and no one seems to be able to help you – or offer you “help” that makes sense – you should speak with a non-profit Credit Counsellor. Most of them are trained specialists in helping people find workable solutions that will fit their budget and help them pay off their debt in a reasonable time-frame. Talking to a Credit Counsellor won’t hurt your credit, it’s completely confidential, and is usually free or offered at a very low cost. A Credit Counsellor will go over your whole financial situation with you and then help you explore your options. If their Debt Management Program or another form of debt relief is a viable option for you, they’ll let you know about it and how it works. A lot of the time, though, there are lots of other ways people can tackle their debt and pay it off on their own. They just need an expert to help them put together a realistic budget, a sensible plan, and a bit of coaching. If a Credit Counsellor thinks a debt consolidation loan may be a realist option for you, they’ll refer you to the right place. If you’d like to speak with Credit Counsellor near you, give us a call and we’ll put you in touch with someone.

4. Family or Friends

If you really need a consolidation loan and no one in Ontario is able to offer you one at a reasonable interest rate, see if you have any family or friends that are able to help you. Taking a loan from someone you know can have its risks. If you fall on bad times and are unable to repay the loan, it could impact your relationship with the person you borrowed the money from.

5. A Licensed Insolvency Trustee

If you’re really struggling and you owe a lot more money than you can repay in a reasonable time-frame, then working with licensed insolvency trustee may become an option. One of the services they offer is a consumer proposal. In some ways it can be compared to debt consolidation, but it’s also related to bankruptcy. So while this option will be appropriate for some people – and will help them become debt free within 5 years – it has some negative consequences that you’ll need to consider carefully before deciding to pursue it. If this option is worthwhile for you to consider, a credit counsellor will bring it to your attention when you meet with them. They’ll then refer you to a reputable licensed insolvency trustee if you wish to pursue it.

Summing It All Up on Where to Find the Best Location for a Debt Consolidation Loan in Ontario

If you’re looking for the actual best location in your area of Ontario to get a debt consolidation loan, hopefully our tips to search the Better Business Bureau and take a look at bank and credit union branch ratings on Google and Yelp helps you find what you’re looking for. If you’re having trouble getting a loan at a reasonable interest rate, then hopefully our other tips can help steer you in the right direction.

Worried about debt?
Get help to overcome it.
The sooner you start dealing with your debt, the sooner you’ll have it paid off. If you need some help getting started with a plan, or if you’re not sure if your budget is realistic, contact a non-profit credit counsellor for free, confidential help. Typically, the earlier you contact us, the more options you’ll have.

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