One of the realities of struggling with debt is the impact it has on your ability to get out of debt. The longer consumers in the Victoria area have tried to solve the problem on their own unsuccessfully, the more likely it is that their credit score has continued to drop.
Missed, partial, and late payments all negatively impact your credit score. The lower your credit score, the harder it is to get a loan from a traditional lender in Victoria. This includes the bank or credit union you may have done business with for years. If your credit score is considered in the poor range, which is 300 to 574 for most traditional lenders, it is unlikely you would be approved for a consolidation loan to address your debt problems.
The Option for Consolidation Loans for Bad Credit
There are lenders that offer consolidation loans for bad credit throughout Canada. These lenders tend to have slightly higher interest rates on their loans than neighborhood banks and credit unions.
When working with a LIT (Licensed Insolvency Trustee) for your Consumer Proposal, it is possible to obtain consolidation loans for bad credit. It will be essential to ensure you can repay the loan and the interest on time every month over the term of the loan to comply with the requirements of the Consumer Proposal. Understanding the financial obligations for repayment of the loan will be critical in determining if this is the best option for you moving forward.
