If you’re a Canadian struggling with debt, there are many options available to help you. These solutions include personal loans, debt consolidation programs, and in extreme cases consumer proposals and bankruptcy.Source:https://alpinecredits.ca/loans/consolidation

One of the most popular options is to take out a debt consolidation loan. This is a new loan that pays off your existing debts and combines them into a single, lower monthly payment. The lender will generally offer a lower interest rate than your credit cards and may offer an extended term, reducing your total payback period. However, you need to have an acceptable credit rating and sufficient income to make the payments.

Financial Freedom Awaits: The Complete Guide to Consolidation Loans in Canada

It’s difficult to get a debt consolidation loan with bad credit. Creditors look at your credit history and debt-to-income ratio to determine risk, and with a poor score, it’s likely they will assume you won’t be able to afford the monthly repayments. They’ll also see you’ve recently had a loan default or repossession, and this will flag you as high risk.

A better option for those with bad credit is to work with a non-profit debt counseling agency. They’ll negotiate with your creditors on your behalf and work to lower your interest rates, combining them into a single, more manageable monthly payment. Typically, only unsecured debts (like credit card debt) can be included in this type of program. Using this option, while it may hurt your credit score, will build it over time with each on-time payment you make.