A debt consolidation loan takes all of your debts and combines them into one loan with a single creditor.
During your free consultation, Bromwich+Smith will take a detailed look at your finances with you. If your credit rating is good, you have a home or other assets to offer as collateral and you are able to pay back 100% of your current debts over a set term, a debt consolidation loan may be your best solution.
The good news is that a debt consolidation loan does not have a negative impact on your credit rating; the bad news is that you have to pay all of the debt back and the interest rates can be so large that it isn’t financially responsible to your retirement goals to put yourself in a loan like this. Plus, to get this type of loan you will need to have a good credit rating and an asset which you can offer up to the loan issuer as collateral (this means that they can take the asset if you don’t pay).
If you have the ability to make a monthly payment toward a debt consolidation loan, you definitely have the ability to fill a Consumer Proposal and start saving toward your retirement future within as little as 5 years or less! A Proposal also consolidates all of your debts into one monthly payment, but unlike a consolidation loan, you only pay back the portion of your debt that you can afford and not what creditors are demanding. Plus, there are no interest charges and a good credit rating is not required, and a Proposal offers significant legal protection against creditor actions.
If you still decide that a consolidation loan is the route you would like to go, although Bromwich+Smith doesn't offer these loans, we will recommend the names of companies that do offer this product in your area. There is no charge for this service.