Risks of Secured Consolidation Loans

Where the applicant has accepted a secured consolidation loan (secured against equity or other assets), the lender may reposses or liquidate in the event that the loan payments fall behind. There is very little "gray area" with respect to these types of loans.

Where the applicant has attained a co-signer to strengthen the application, the co-signer will be as susceptible to the same credit & legal risk as the primary applicant as they take on the same amount of liability to ultimately pay back the low-interest consolidation loan.

A further risk of consolidation loans (and more generally, credit applications) is that the overall beacon score is affected negatively when the application is declined. Canada Debt Settlements would recommend to apply no more than twice after declines, especially when there is no reasonable expectation of an approval. Read our section on total debt servicing ratio.

Learn about how to use consolidation combined with lump sum payouts to repay your creditors and save money in the process.

However, considering the risks, perhaps you should consider one of the other options available when it comes to reducing your debt:

Canada Debt Settlements Inc Debt reduction through debt settlement homepage
Canada Debt Settlements Inc Debt reduction through Debt Reduction homepage

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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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