Will a Consolidation loan reduce my debt?

There is NO principal debt reduction in a consolidation loan.

The fact remains that every application for credit affects your beacon score negatively, moreso when the application is declined. If the applicant is a property owner with sufficient equity or holds other assets (i.e. GICs, RRSPs, bonds, etc...), the bank may offer to secure the loan against these assets, and essentially hold them as collateral until the consoldation loan is paid. These are known as Secured Consolidation Loans, where in exchange for a low-interest loan, the lender will secure that amount against an asset of the loans value.

If the applicant is not an asset holder, or their assets are not sufficient for the application, a co-signer may strengthen the credibility of the application. Especially in cases where the debts requiring consolidation are in the arrears (late in payments), co-signers may provide additional assurance to the lender that the loan will be re-paid as per the terms and conditions of that loan. Typically, the co-signer would be expected to have a high level of credit worthiness and would be bound by the same terms and conditions of the consolidation loan. It is assumed that the co-signer will continue regular payments of the loan in the event that the primary applicant fails to do so.

Canada Debt Settlements and Consolidation Loans: Principal Reduction?

Canada Debt Settlements specializes in negotiating a reduction of the overall amount of consumer debt for those accounts that have fallen behind. Our licensed representatives will review your current situation and advise you on how a consolidation loan may be utilized to reduce your principal debt with a lump sum, by up to 80%, without registering your accounts as an R7 Orderly Payment of Debt program.

The combination of a consolidation loan and principal debt-reduction will significantly reduce the amount of time that you are debt-free, without the need for a registered insolvency program.

Canada Debt Settlements is licensed and bonded under the 'Collection Agency Act' via the Consumer Protection Branch to perform the function of debt negotiations with funds held In Trust on your behalf.

Canada Debt Settlements Inc, due to licensing, can not be involved in the arrangement of any financing, however we can advise you of your options when it comes to paying out your creditors in a lump-sum settlement.

For a list of all our services please see our Services Page or Contact Us.

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Canada Debt Settlements stands by the commitment and service guarantee that no client will be charged unless we can achieve a debt reduction. As our customer testimonials will demonstrate - we have a unique solution that allows a licensed agency to advocate with your creditors on your behalf. We work for YOU... not the creditor. Call now to speak with an experienced and licensed debt professional. What do you have to lose?

Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

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