If you are interested in having a more manageable way to deal with your debt, consolidating is one of the best options out there for you.  There are 8 ways to consolidate debt, but we will only go over those that are most widely used.  Keep in mind each option has its own pros and cons.  Talking to a professional will truly help you determine which option is best for your situation.  Also depending on your situation, not all options may be available for you to use.

 Canada's  Debt Consolidation Options
  1. Consolidate using a Debt Consolidation Loan
  2. Consolidate using a Home Equity Loan / Refinance Mortgage / Second Mortgage
  3. Consolidate using a Line of Credit or Overdraft
  4. Consolidate debt on your Credit Cards
  5. Consolidate using a Debt Management Program
  6. Consolidate by doing a Debt Settlement
  7. File a Consumer Proposal
  8. Consolidate by Borrowing from Family or Friends


 Consolidate using a Debt Consolidation Loan

A debt consolidation loan is where a bank, credit union or finance company provides you with the money to pay off your outstanding debts and "consolidate" them (bring them all together) into one big loan. This usually provides you with three advantages:

Advantages of a Debt Consolidation Loan
Disadvantages of a Debt Consolidation Loan