In order to qualify for a consolidation loan you will need to have good credit. You will also need to have a long enough credit history to prove to the bank that you will make good on your end of the bargain. A bank will also look at your income to ensure that you will be able to afford the new payment. If you were previously making minimum or interest only payments, then your new consolidation loan payment may be much higher than what you are paying now. If your income is low, then this may not be an option that will be in your favor. Another thing to consider is how much debt you have in comparison to your income. If you have too much debt, a bank may not approve you to take on more debt. Normally banks will only allow you to borrow up to 40% of your annual income for load, this may not be the right option for you.
If you are struggling with debt and you won’t qualify for a consolidation loan, there are other options available. If you would like to learn more about your options give 4 Pillars Red Deer a call at 403-755-1757 and set up a free consultation. Our consultant will go over your situation with you and present your options to you for becoming debt free.