Debt Consolidation

Personal bankruptcy is not the only solution to debt problems. Among other options, consolidating your debts can help you to take full control of your finances. At BLT Lapointe & Associates Inc., personal and commercial licensed insolvency trustees in Montreal, Laval, Longueuil, and other areas around the province, our team can direct you towards the best solution, depending on your situation.

Sell all of our individual services

What is debt consolidation?

Debt consolidation consists in securing a loan from a financial institution in order to pay all of your creditors and gather all of your debts in one place. When a financial institution approves you for debt consolidation, it takes care of paying your creditors for you. Once that’s done, you will only be required to make a single payment each month until your financial institution is reimbursed.

The advantages

Debt consolidation can help you to avoid issues associated with personal bankruptcy. It also offers a number of additional benefits:

  • Easier financial management thanks to a single monthly payment;
  • All of your creditors will be fully reimbursed;
  • Possibility of saving a significant amount of money on your interest payments;
  • Protect your credit rating as long as you respect your payment agreement.

Take note

Before you are approved for a loan, your financial institution will need to asses your risk profile by evaluating the following:

  • Your professional situation (you must have stable employment);
  • Your credit score;
  • Your debt ratio (must be lower than 40%).

If you present a high risk, you might have to find an endorser to co-sign your loan. Your financial institution could also order that your credit cards be destroyed.

If you are denied you can start the process over with another financial institution. That being said, you should be aware that this second request will negatively impact your credit score. If your second attempt is refused, we recommend turning to another solution.

Other solutions you might consider:

Where should you start?

As financial advisors and licensed insolvency trustees in Montreal, Laval, and many other cities and municipalities, BLT Lapointe & Associates Inc. recommends starting by asking a professional to assess your situation. Sometimes, simply reorganizing your budget can help you to get through major financial difficulties.

Schedule an appointment with a location near you

Would you like to know more about debt consolidation or additional solutions that can help you to put your debt problems behind you? We can help. Give us a call.