Consolidation Loans in Canada: Everything You Need to Know
Consolidation Loans in Canada: Everything You Need to Know
Posted on February 8, 2023
A consolidation loan is a loan you use to pay off other debts. You can combine a Beamsville auto loan with consolidation or you can use a personal loan to consolidate your debts. It’s entirely up to you.
As we are Beamsville car loan specialists, we’ll include those into our mix.
Let’s look at a typical example.
Say you have three credit cards with a total of $6,000 outstanding. You also have a personal loan of $3,000. Rather than paying four different companies four different amounts that charge four different interest rates, you can consolidate them all into one.
If you use a personal loan, you could borrow, $9,000 and have a single payment to manage each month.
You could also have a much lower interest rate depending on your credit score and circumstances.
This makes your financial life much easier to manage as well as potentially saving you hundreds of dollars in interest payments over the year.
Beamsville car loans and consolidation
You can also use a Beamsville car loan to consolidate other debt. For example, let’s say you have an existing car loan of $15,000 but you have paid off $12,000. Your car is still worth $10,000, so you could theoretically borrow up to that amount using the car as collateral.
That gives you $9,000 to pay off your debt while also keeping your car and keeping your monthly payments the same. The main difference is that you won’t have those four extra outgoings each month!
You will have extended the term of your car loan though.
What happens is that you apply for a new car loan in Beamsville and pay off your old one. You select the amount and the term that suits and you’re good to go. Use some of that new loan to pay off the old one. Use some to pay off your other debt and you might even have a little left over.
You can use that for your first couple of payments if you like.
Consolidation loans won’t work for everyone, but they can work.
Shopping for consolidation loans in Beamsville
Select your loan carefully. Ideally you want a loan that will let you overpay without penalty. You also want to be able to settle it early without a penalty too. There are lots of loans like that around.
If you work with a Beamsville auto loan expert like Car Nation Canada Direct, we could make the consolidation using a car loan work for you too.
You will need a sufficient credit score to borrow the amount you need and a good payment history but we are confident we could find a great deal on a car loan that could set your finances free.
We will use all our skill and experience to deliver the lowest possible Beamsville car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.
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