Personal Loans in Alberta: A Debt Consolidation Solution
Debt consolidation is a smart way to manage multiple high-interest loans by combining them into one with a lower interest rate. In Alberta, average non-mortgage debt per person is over $24,000. A useful tool like a personal loan will consolidate your debt into one monthly payment. This blog will provide you with the best personal loan options for debt consolidation, key benefits and what you need to know before applying.
Why Consolidate Debt?
Consolidate debt means combining several high-interest rate loans, like credit cards or payday loans, into a single loan with a lower interest rate. This can simplify your payment and save extra money. The main goal of consolidation is to save your money, reduce interest and get out of debt faster. This can manage by a personal loan, a debt consolidation program run by the government of Canada or a debt management plan (DMP). A Personal loan is an effective and fastest way to get rid of debt among the above options.
Types of Debt Consolidation loans
There are several types of loans available in Alberta for debt consolidation:
- Secured loans: If you have a mortgage (a house or car), you can apply for secured loan. It will offer you lower interest rates, starting from 5.4%.
- Unsecured loans: Peoples who have no mortgage property can apply for an unsecured loan. It will offer you a higher interest rate, starting from 5.99% to 46.96% depends on credit score.
- Balance Transfer Credit Card: These cards will allow you to transfer all your debt to a card with 0% to 3.5% introductory rates. Which can reduce the amount of interest paid if the debt is paid within a promotional periods. It can be tricky if you don’t use it wisely.
Top Personal Loans provider in Alberta
Loan Canada is one of the famous platforms offering loan amount starting from $300 to $50,000, with the APR starting from 9.9% to 46.96%. It is famous for fastest approval process and disbursing money within 24 hours. For people who have a low credit score and are looking for the fastest solution may apply for it. In 2023, Loan Canada becomes a finalist for the Best Personal Loan Search Platform Category.
SkyCap Financial is another best platform offering loan amounts starting from $500 to $10,000 with an interest rate starting from 12.99%. Known for their customer-friendly approach, they don’t emphasize credit score, making it easier for low or bad credit scorers.
Spring Finance is famous among the credit score builders. People who are looking to rebuild their credit score, Spring Finance offers loans starting from $500 with the lowest interest rate 9.99%. They provide personal loan as well as credit builder loans. Their well-known feature is 100% online application process, which provides quick funding via e-transfer.
LoanConnect works with a large number of lenders and offers loan amount starting from $500 to $60,000 with APRs starting from 8.99% to 46.96%, depending on your credit score. It’s an ideal option, as they have many lenders. You will get a suitable loan for yourself quickly, even if you have a low credit score.
Before consolidating your debt, make sure you have a clear strategy to pay off the consolidated amount. It may lower your interest rate but the debt amount remains the same. To come out of debt, you need a strong budgeting plan. Always assess your overall finances to fit in your monthly payment.
Conclusion
In Alberta, personal Loan for debt Consolidation is the best option, especially to earn financial freedom and reduce the interest rate to save money. Above all, the option is worth to think before applying. If you are confused and not able to choose any option, expert like Credit720 provides you a guided road map for debt consolidation and suggest multiple options for personal loans suitable to your credit score and financial situation.
