Cheap way of consolidating debts
When the economy is doing really well and jobs are easy to find, some banks may lend people much larger amounts of money without requiring any security, but this is more of an exception rather than the norm.
This means you can arrange much lower monthly payments than with another type of loan.A wise relative may not wish to put themselves or you in a situation like this.This may be another reason why a relative may not be willing to lend you money. If a relative is able to lend you money, then make sure that you honour your agreement with them and always make your payments on time as agreed.If you have a number of debts, you may wish to merge them all into one loan. There may be a number of reasons why you would wish to do this.Below are the most common reasons: To learn more about what debt consolidation is and how it works in Canada, click here.Maybe your relative’s finances are tight right now—even though they may look successful to you.
Lending money to family members involves added risks.
If none of the above options will work for you, you can speak with a Credit Counsellor to see what other options may be available to you.
You may qualify for a debt management program or orderly payment of debts program (depending on your province).
You can see if your bank or credit union is able to provide you with a debt consolidation loan.
Banks and credit unions are typically only willing to lend people around 10% of their net worth (your assets minus your debts) on an unsecured basis.
If you want to change your situation, you will have to do some things differently.