Debt Consolidation

Debt Consolidation

What is debt consolidation?

The purpose of debt consolidation is to obtain a loan to use to reimburse all or part of your debts in one single payment. If it is granted, you will only need to make monthly payments of the consolidation loan authorized by your financial institution. This will simplify the financial management of your debt. In many cases, you might even benefit from a lower interest rate.

How does debt consolidation work?


Find a financial institution willing to give you a consolidation loan.


Pay creditors with the consolidation loan.


Reimburse the sole debt remaining, i.e., the debt consolidation loan.

Understand debt consolidation better

Before taking these steps, make sure that debt consolidation is the solution that applies to your financial situation. You can consult a Ginsberg Gingras professional for an evaluation of your financial situation. This meeting is free and without any obligation on your part.

To consolidate your debts, you must first find a financial institution that will agree to give you a loan. Banks and other lending institutions will consider your credit rating, your debt ratio and your employment status. The information will be used to evaluate the risk you represent if they agree to your debt consolidation.

If you are refused, you can make another debt consolidation request to a second financial institution. However, each debt consolidation request generates a note on your credit report. That is why it is important to limit your requests to a maximum of three. Consequently, it is recommended to develop your request well and make sure that debt consolidation applies to your financial situation. If you make three unsuccessful attempts, look for other ways to solve your debt problem.

Advantages of debt consolidation

  • Simplifies your debt management.

  • Provides a lower interest rate.

  • Helps you avoid bankruptcy.

Disadvantages of Debt Consolidation

  • It can prove really hard to be approved for a debt consolidation loan
  • Expect fees when opening an account if your request is approved
  • Does not reduce the total amount of debt to repay
  • Financial institutions are generally inflexible and do not tolerate late payments
  • Some debts (e.g., mortgages) are not eligible for debt consolidation

Is debt consolidation right for you?

Debt consolidation can be a solution to your debts if you meet the following criteria:

  • Hold a steady job.
  • Have sufficient income sources.
  • Have a good credit rating and an acceptable debt ratio.

Ginsberg Gingras, your debt solution

Before requesting debt consolidation, you can consult the professionals at Ginsberg Gingras. This free consultation will allow you to better understand your situation and consider the solutions available to you. If debt consolidation turns out to be an option, our licensed insolvency trustees (LIT) will recommend you submit your request to your banking institution. You will have more chance to get a positive response from an institution that knows you.

Consult us! We are available to end your debt in complete discretion and with all the respect you deserve.

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