Loans Canada Services Are 100% Free. Disclaimer

Debt Consolidation Markham 2019

Compare the best lenders in this region:
4 / 5
Pylo Finance 4 / 5
Fresh Start Finance 4 / 5
Marble Finance 5 / 5
Money Mart 4 / 5
Payday King 2 / 5
Private Loan Shop 5 / 5
Progressa 3 / 5
My Canada Payday 5 / 5
Mr. Payday 4 / 5
Money Provider 5 / 5
Loan Express 3 / 5
Meridian Credit Union 5 / 5
Loan Away 4 / 5
Loan & Go 5 / 5
Lendful 3 / 5
LendDirect 5 / 5
Health Smart Financial Services -
GoDay 4 / 5
iCash 5 / 5
Focus Financial Inc. 2 / 5
FlexFi 5 / 5
Eastern Loans 5 / 5
DMO Credit 5 / 5
Capital Cash 2 / 5
Cash 4 You 2 / 5
Credit 700 2 / 5
Credit Club 5 / 5
Credit2Go 3 / 5
Ledn 5 / 5
Amber Financial 5 / 5
Affirm Financial 5 / 5
310 Loan 2 / 5
Newstart Canada 4 / 5
Ferratum 5 / 5
SkyCap Financial 4 / 5
Fast Access Finance 5 / 5
Fairstone 2 / 5
Lending Mate 4 / 5
Consumer Capital Canada 4 / 5
Lamina 3 / 5
Loans SOS -
514 Loans 5 / 5
CashCo 5 / 5
UrLoan 5 / 5
Loan Me Now 4 / 5
Captain Cash 4 / 5
BC Loans 4 / 5
Urgent Loans 4 / 5
Easy Financial 3 / 5
Mogo Finance 4 / 5
Cash Money 5 / 5
Borrowell 5 / 5
Magical Credit 5 / 5
SharpShooter Funding 5 / 5
First West Credit Union 5 / 5
PACE Credit Union 5 / 5
Meridian Credit Union 5 / 5
DUCA Credit Union 5 / 5
Laurentian Bank of Canada 5 / 5
HSBC Bank Canada 5 / 5
National Bank 5 / 5
Desjardins 5 / 5
Canadian Imperial Bank of Commerce (CIBC) 5 / 5
Scotiabank 3 / 5
Bank of Montreal (BMO) 3 / 5
Royal Bank of Canada (RBC) 5 / 5
CWB National Leasing 5 / 5
Money Line Capital 5 / 5
Money in Motion 5 / 5
Lease Link 5 / 5
FundThrough 5 / 5
Econolease Financial Services Inc. 5 / 5
Easylease Corp 5 / 5
Capify 5 / 5
Canadian Equipment Finance 5 / 5
Capital Key 5 / 5
Cashbloom 5 / 5
BFS Captial 5 / 5
BDC 2 / 5
Baron Finance 5 / 5
B2B Bank 5 / 5
AOne Financial Solutions 5 / 5
Borrowell 5 / 5
iCapital 5 / 5
Lendified -
IOU Financial 5 / 5
Company Capital 5 / 5
OnDeck 5 / 5
Evolocity 5 / 5
Lending Loop 5 / 5
Thinking Capital 5 / 5
Canada Car Loans -
Car Loans Canada -
Car Creditex -
Auto Capital Canada 5 / 5
Carfinco 5 / 5
Canada Drives 5 / 5
Prefera Finance 5 / 5
Prudent Financial Services 5 / 5
Dixie Auto Loans 5 / 5
Approve Canada 5 / 5
2nd Chance Automotive 5 / 5
Newstart Canada 4 / 5
SkyCap Financial 4 / 5
Splash Auto Finance by Rifco 5 / 5
Carloans411 5 / 5
AutoArriba 5 / 5
Newstart Canada 4 / 5
Fast Access Finance 5 / 5
BHM Financial 5 / 5
CMLS Financials -
CHIP Reverse Mortgage -
CanWise -
Centum 5 / 5
Broker Financial Group Inc. 5 / 5
Bridgewater Bank 5 / 5
Alpine Credits 5 / 5

Getting out of debt can be tough and unnecessarily stressful, especially when you’re living in Markham, Ontario, where the average cost of living is considerable. And when you have debt of any kind, it’s best if you don’t let it get ahead of you. 

If your own level of debt is becoming unmanageable, there’s no need to worry, because there are plenty of solutions available in your area. One of the simplest and most effective ones is known as debt consolidation. If you’re looking for help with debt consolidation in Markham, we have all the information you need. 

Live in another city in Ontario, click here for information about debt consolidation in the rest of the province. 

Debt Consolidation Loan vs. Debt Consolidation Program

Traditionally speaking, debt consolidation refers to the act of paying down multiple debts using one clean-up technique. Although there are two slightly different versions of this technique, the main goal is always the same; to reduce your outstanding debt level and leave you with only one repayment plan to follow, rather than several. 

When accomplished, this would not only decrease the amount of interest you’re paying from month to month, it can also prevent any further damage that your finances and credit score have taken due to your unpaid debts. As mentioned, there are two types of debt consolidation that you can apply for.

Debt Consolidation Loan

Available through various financial institutions in Markham, otherwise known as lenders, the first solution you can try is a debt consolidation loan. Essentially, you would be applying for a lump sum of cash. You would then use the loan to pay down your debts and repay the borrowed funds through monthly installments.

How Does Bad Credit Affect Daily Life?Debt can cause bad credit and bad credit can affect your daily life, learn more here. 

Things to Know About Debt Consolidation Loans:

  • As with most credit products, your lender will examine your finances and credit before allowing you to borrow from them. Typically, you will need a decent income, good credit score, and possibly some security (collateral or a cosigner) in order to be eligible.
  • The more qualified you are to complete your designated payments, the more money you can secure, the lower your interest rate will be, and the more negotiating power you’ll have for your payment plan.
  • Although you’ll be left with a single interest rate to pay, that rate may be somewhat higher than other credit products because your lender thinks you have a greater chance of missing payments. 
  • Despite its purpose, a debt consolidation loan is a debt like any other. As such, defaulting on your payments can result in late penalties, further debt issues, and even the loss of your asset if you offered collateral.
  • A debt consolidation loan will be listed in your credit history, affecting your credit report negatively until the process is over. If you apply for new credit during the ordeal, lenders can look at your report and decide you are too risky to approve.

What happens when your debt consolidation loan application gets rejected? Click here

Debt Consolidation Program 

If you cannot qualify or don’t wish to apply for a loan, you can also enter a debt consolidation program through a credit counselling agency. With a similar goal in mind, a counsellor would contact your lenders for you and offer them a deal that, when accepted, allows you to repay your outstanding balance through monthly installments.

Things to Know About Debt Consolidation Programs:

  • A certified credit counsellor can give you all the information you need to improve your financial situation. That said, be aware that some agencies charge a service fee, so you must budget for it accordingly. If you cannot afford this fee, there are many non-profit agencies in Markham. 
  • A debt consolidation program is not a legally binding procedure, so your lenders are not obliged to accept it. In that case, you and your counsellor may have to come up with another plan of action. 
  • It’s imperative to do research before you sign up with any credit counselling agency. Make sure your counsellor is properly licensed and has a good reputation before you give them any information.
  • You must be comfortable discussing your financial issues with your counsellor and be willing to attend several counselling sessions. Don’t worry, a good counsellor will never judge you and anything you discuss will remain private.
  • A debt consolidation program will also appear on your credit report for several years. Additionally, any accounts associated with the process will receive an R7 credit rating. Once again, this can make it hard to obtain new credit until the situation has been reversed. 

Will a debt consolidation loan look bad on your credit report? Find out here

Good Debt vs. Bad Debt

There are plenty of reasons why you might be interested in debt consolidation in Markham. Unfortunately, there are even more reasons why you could end up in bad debt in the first place, including but not limited to:

  • Living in an apartment, condo, or house that you cannot afford 
  • Getting in a car accident or other unexpected event
  • Falling victim to a scam, fraud or identity theft
  • Having your work hours reduced or becoming unemployed
  • Suffering an injury or illness that prevents you from working

Then again, there are numerous debt types that are necessary and may even be good for your financial situation under the appropriate circumstances. Take a look at the examples below so you can distinguish whether you have good debt or bad debt. 

Good Debt

Generally, ‘good debt’ refers to any kind that can get you ahead in some way. For instance, using your credit credit card is one of the simplest and most beneficial ways of paying for your daily living expenses. 

Not only can you buy your groceries and household supplies with ease, but paying your credit card bills responsibly is an efficient way of building and improving your credit score. On top of that, you’ll have the option of making minimum payments when you can’t afford full ones and many cards come with perks, such as travel points. 

Bad Debt 

On the other hand, that same credit card can put you under a ton of ‘bad debt’, especially when you get into the habit of overspending. Caught off guard by how easy they are to use, you may not realize how many purchases you’re making, only to get slapped with monthly bills that far outweigh your income.

Although minimum payments may save you from late penalties, they can make you use up too much of your available credit limit from month to month, which can decrease your credit score. Not to mention, the more debt you accumulate, the more interest you’ll have to pay, making your debt even larger. 

What’s worse, defaulting on too many payments can lead to your card being frozen and even some serious debt collection penalties if your debt is bad enough. Always use your credit products wisely and avoid applying for them if it looks like you won’t be able to afford the debts they can lead to.

Learn How to Tackle DebtCheck out this infographic to learn how to create a plan to tackle your debt. 

Eligible vs. Ineligible Debts

Before you try either form of debt consolidation in Markham, the last thing you’ll need to consider is whether or not your particular debt will be eligible. 

Like with many debt management solutions, debts that are secured by collateral must be excluded from the process, as they imply that a lender still temporarily owns one of your assets (for more information about secured vs. unsecured debt, click here). Some types of legal or government-related debt will also be ineligible. However, most unsecured debts, as well as many non-credit debts will qualify. 

Examples of Ineligible Debts

  • Mortgages
  • Home equity loans & lines of credit
  • Vehicle loans
  • Federal student loans
  • Legal fines (lawsuits, tickets, etc.) 

Examples of Eligible Debts

  • Personal loans & lines of credit
  • Credit cards
  • Traditional student loans
  • Vehicle repossession
  • Non-credit bills (utilities, cell phone, etc.)

Applying for Debt Consolidation?

If so, be sure to talk to the experts at Loans Canada first. We can connect you with the best sources of debt consolidation in Markham. All you have to do is call us today or check out our website!  


Will seeing a credit counsellor affect my credit score?

  • Meeting with a credit counsellor to discuss your credit building or debt relief options will not affect your credit score. But, if you enter into a certain type of debt relief program through your counsellor, that could have negative effect on your credit score.

What is the difference between unsecured and secured debt?

  • Secured debt is backed by collateral in the form of an asset, typically a vehicle or house. Collateral lessens the risk for the lender and sometimes allows a borrower to gain access to a larger loan or a lower interest rate. In the event that a borrower defaults on a secured loan, the lender has the right to seize the assets to recoup any losses. Unsecured debt, on the other hand, does not require any form of collateral or security.

What is insolvency?

  • Insolvency is the state of being unable to repay your debt. A borrower who is insolvent typically must seek professional help to deal with their debt issues.

Does the Canadian Government offer debt relief services?

  • The government of Canada does not offer any specific debt relief programs or products.

How useful was this post?

Click on a star to rate it!

Posted by
Bryan completed the Cinema, Video, and Communications program in Dawson College and holds a Bachelor’s Degree in English Literature & Creative Writing from Concordia University. Bryan covers a wide range of topics for Loans Canada, including credit improvement, debt management, and all things related to personal finance. In his spare time, he maintains a passion for editing, writing film and television screenplays, staying fit, and traveling the world in search of the coolest sights our plan...

Services In This Region
Regional Service Directory
From the blog...
Make Sure You Understand These Financial Terms Before Getting a Loan
Posted on November 19, 2019

Make Sure You Understand These Financial Terms Before Getting a Loan

Taking on a loan is a serious financial decision, make sure you understand these terms first as they will help make the process as smooth as possible.

Can I Pay Off My Loan Early?
Posted on October 31, 2019

Can I Pay Off My Loan Early?

Thinking about paying off a loan early to save on interest or to get rid of any debt you have? Loans Canada has all the information and advice you nee... Read More

How Can I Get a Lower Interest Rate on a Loan?
Posted on September 26, 2019

How Can I Get a Lower Interest Rate on a Loan?

From our friends at Fairstone Financial, everything you need to know about how to get a lower interest rate on a loan.

Related Videos
How To Identify A Loan Scam
How Your Credit Score is Calculated
The Ins & Outs of Debt Consolidation

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster.

Loans Canada and its partners will never ask you for an upfront deposit, upfront fees or upfront insurance payments on a loan. To protect yourself, read more on this topic by visiting our page on loan scams.