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Debt consolidation services: is this the right debt help for you?

By Christine Wagner

Canadian households are carrying more debt today than ever before.

According to a Statistics Canada study beginning in the early 90s, the amount of household debt has risen consistently.

In fact, by 2012, 71% of Canadian families were living with debt; mortgage and consumer debt including credit cards, lines of credit and other loans.

If you are one of the 29% of Canadian families not living with debt in 2012, congratulations.  For the rest of you, the struggle is real.  But it is not hopeless.

Debt Consolidation Services

Though many Canadians feel embarrassed asking for debt help, they don’t have to because compassionate debt settlement expertise is available.  One popular option is Debt Consolidation: a lower interest rate loan that combines all of their consumer debt into one payment.

Unlike Bankruptcy or a Consumer Proposal, debt consolidation will help release the hold debt has on your disposable income while paying off your debt. More importantly, it will not have further adverse effects on your credit rating.  As well, when you choose the debt consolidation route you will be able to keep your credit cards; though you should exercise caution to avoid the pitfalls that got you into debt in the first place.

Basically, a Debt Consolidation loan combines your debt into one low payment at a lower interest rate. Though your creditors have been dealt with you are still carrying debt until the loan is paid.

Over the years Canadian Banks have tightened requirements for consolidation loans.  Because the bank is assuming all of the risk, you will usually need to have assets or equity to use as collateral, such as your home, or a reliable co-signer.

Unlike your credit card company who makes money in fees and interest when you miss a payment, the bank is not as forgiving or lenient.  If you have a co-signer for the loan, the burden of your debt repayment will fall to them.

Finding the Debt Consolidation Service that is best for you

There are several companies offering debt consolidation services and it may be to your advantage to seek their help.  The right debt consolidation service will help you sort through your consumer debt and utilize your assets to secure a consolidation loan.

So, what is to stop you from sitting down with your local banker and getting a Debt Consolidation loan on your own?  Absolutely nothing.  However, you should always review all your options and get impartial advice before deciding to move forward to ensure you have found the optimum solution based on your situation and long term financial goals.

With 4 Pillars Debt Solutions, you will be working with a financial expert who will help you avoid the traps that see so many Canadians worse off, financially, than when they started.

A 4 Pillars Debt Specialist will analyze your debt situation to determine if Debt Consolidation is the right option for your situation.

If you don’t have good credit, equity, collateral, or a strong co-signer to get loan approval, your Debt Specialist will present you with other sound options to deal with your debt and repair any damage that debt has caused to your credit score.

Typically you will find the lowest interest rate with a bank or credit union.  But be wary of Debt Consolidation Services that offer high interest rates and extended repayment terms.

The 4 Pillars Advantage

If it’s determined that Debt Consolidation is a viable option, your 4 Pillars Debt Consultant will educate on how to avoid further debt, strengthen your credit score, and help plan for your post debt future.

A simple google search will show you all of the companies offering Debt Consolidation Services, but the right company will be an advocate for you and they will keep working to strengthen your financial future while helping you stay out of debt.  A quick browse of the 4 Pillars testimonial page will help you see their impact on thousands of satisfied customers.

Just one more thing…

If you are one of the millions of Canadians who have watched their debt creep up on them over the years, you are not alone.

Do your research, consult the Better Business Bureau, ask the tough questions, and make sure the debt consolidation Service you hire is going to do everything in their power to help you succeed financially.

This will help ensure that the next time Stats Canada publishes the percentage of households with debt, you’ll be on the other side of that figure.

About the Author


Christine Wagner and Paula Ryan are Debt Specialist with 4 Pillars Newfoundland.  To learn more about 4 Pillars Debt Consolidation Services or how you can settle your debt, call Christine Wagner and Paula Ryan  at 4 Pillars Newfoundland, (709) 700-5509, or toll-free 1-888-229-3252.

For more information on Debt Consolidation or other Debt Settlement strategies, log onto 4 Pillars.ca to find a 4 Pillars Debt Specialist near you.

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