Debt Consolidation Loan

What Are Debt Consolidation Loans  

Debt consolidation loans are when you combine your individual debts, each with its own interest rate and monthly payment, into a single loan with one interest rate and one monthly payment. This makes managing your debts far more manageable and less stressful.

Imagine only having one single loan payment each month, and knowing exactly when you’ll have your consolidated loan paid in full. The stress of having multiple payments, each with a different payment amount and date, will be a thing of the past. Debt consolidation loans are a significant debt relief tool for those who are struggling with their debt payments each month.

iCash is your financial partner that believes everyone deserves a second chance. Sign up for iCash today to see how we can help you consolidate your debts today.

How Debt Consolidation Loans Work

Debt consolidation loans work by combining multiple debts into a single installment loan with one fixed monthly payment. Let’s review the steps on how to apply for, receive, and manage a debt consolidation loan. 

1. Evaluate Your Debt Situation 

To start, make a list of all your outstanding debts, including credit cards, lines of credit, car loans, etc. Note the balance owed, interest rates, and minimum payments for each of these debts. Calculate the total debt you owe, and this will typically be the minimum debt consolidation loan principle you’ll apply for.

If you’re unsure if now is the right time for a debt consolidation loan, here are 15 Financial Signs That You Have Debt Problem. 

2. Apply for a Debt Consolidation Loan

Shop around for a lender that offers you better terms than your current forms of debt. Lenders will assess your debt consolidation application based on creditworthiness, which will include your income, credit score, and outstanding debt.

You should aim to have your debt consolidation loan interest rate lower than the average interest rate you’re currently paying on all your outstanding debt. Your monthly payments should also be equal to or lower than what you currently pay to make them manageable. 

Let us help you streamline debts and consolidate your payday loans, with approval often within minutes!

3. Receive Loan Funds & Pay Off Debts

Once you’re approved, you’ll receive a lump sum amount you will use to pay off your current debts. Our loans stand out because we know how important it is to get you your money fast. Once approved, simply sign the digital agreement, and your funds will be sent via e-Transfer within 2 minutes—24/7, including weekends and holidays!

4. Manage and Repay One Loan

You will only have to worry about paying one monthly payment for an agreed period of time - typically between 2 to 7 years. 

Advantages of Debt Consolidation Loans

Let's review the many notable benefits of consolidating debts.

Easier Debt Management – You can make a single monthly payment rather than having multiple debts to manage and pay. Gone are the days of wondering when a payment is due and if your payment will be late again.

Fixed Repayment Schedule – Many consolidation loans are installment loans with fixed terms, so you know exactly how much to pay each month and when the debt will be paid off.

Improved Credit Score – Consolidating debts can help improve your credit score by reducing credit utilization and making payments more manageable. You're less likely to miss a payment when you only have to worry about one. 

Reduced Monthly Payments – You may be able to reduce your monthly payments if you extend the repayment period. You want to ensure you set yourself up for success, and making your payments manageable is key to staying on the path to financial success. 

Debt and bad credit can feel like a constant roadblock in your life. Contact iCash now to see if a debt consolidation loan makes sense for your unique financial situation

Why Choose iCash for Debt Consolidation Loans?

We’ve been the financial lifeline for over 1 million Canadians who needed help getting out of a financial bind. With a 93% approval rate, we’re here to give you the cash you need when you need it.

Our knowledgeable and approachable team of experts is here to assist with any questions you have. Whether you need clarity on loan terms or help with your application, we're available whenever you need support.

If you’re ready to start on the path to financial security with a debt consolidation loan with iCash, take the first step by creating an iCash account and partner with a lender that puts you first.