Debt Consolidation


What does debt consolidation consist of?

Debt consolidation is a loan granted by a financial institution that gives you the option of reimbursing several (or all) of your creditors in one single payment.
This will enable you to have only one loan with your financial institution, in order to simplify your debts by combining them in one single repayment.

Consumer proposal:

We can help you by proposing to your creditors to repay them only a portion of what you owe them (without interest).
The consumer proposal consists of modifying your obligations towards your creditors by suggesting to them to make lower monthly payments, spread out over a longer period of time.

In what situations should this option be chosen?

This option can be particularly interesting if you have a number of unpaid amounts at high interest rates, for example, on credit cards or store financing cards.
In most cases, your financial institution will pay the charges and you will have to make only one single monthly payment.
However, you should be aware that some debts, such as a mortgage, cannot be added to this loan. It is by contacting your financial institution that you will be able to find out all the debts that can be consolidated.
In addition, it is recommended to check with several institutions before choosing your creditor, as interest rates vary from one place to another.

Free consultation need help?

Contact us to get all the answers to your questions and put an end to your worries, in so doing.

Who can request debt consolidation?

In order to qualify for debt consolidation, a consumer must have an acceptable credit rating and sufficient income to demonstrate that he is able to manage the loan.

The consumer must therefore show that he has the ability to make the monthly loan payments, in addition to paying his regular expenses and monthly bills

To free yourself from debt quickly

If your financial situation prevents you from obtaining a personal loan from a bank or a reputable institution, Poupart Syndic Inc. can offer you an alternative that is likely to be within your reach thanks to the consumer proposal. . This solution will allow you to consolidate your debts into a single monthly payment.
The consumer must therefore show that he has the ability to make the monthly loan payments, in addition to paying his regular expenses and monthly bills
Are you drowning in debt? Do you owe money to many creditors? You no longer know where to turn to deal with all these repayments at often very high rates?
Do the banks refuse to help you or do not provide an effective solution to your financial problems? So you need urgent assistance to alleviate your deficit or even avoid bankruptcy?
Rest assured, Poupart Syndic Inc. is here to help you see more clearly and, above all, to get you out of this delicate situation!

Our know-how and our experience at the service of your finances

Thanks to our experts, you will receive valuable advice for the reorganization of your finances and an optimal solution for debt repayment, including the assistance of a consumer proposal or by directing you towards debt consolidation.
But first of all, let’s see together what debt consolidation is:
  • This is a loan granted to an individual by a financial institution in order to consolidate all of their loans into a single loan with a single interest rate.
  • In other words, it allows you to take out a single loan from this institution instead of being forced to repay multiple types of debts to different creditors.

Simplify your life by keeping only one credit!

Debt consolidation offers a number of significant advantages:
  • On one hand, you simplify your financial management by reducing your monthly payments, which will then be transformed into single payments.
  • On the other hand, you streamline your debts by generally benefiting from a lower interest rate than what is demanded by your creditors, which will inevitably have a downward impact on the interest fees as well.
  • Furthermore, this process allows you to maintain a good credit score, particularly by avoiding tarnishing your credit record.
  • Finally, this solution also represents a popular alternative and a last resort to personal bankruptcy. It can therefore prove to be lifesaving in certain cases of great distress.

Do you meet the eligibility requirements?

To put together a debt consolidation file, you need to approach lending institutions that will be responsible for examining your personal and professional situation.
This is an essential step as it allows them to assess the risks they are exposed to.
Given that you will need to provide evidence of sufficient income in order to prove that you are able to manage the loan, your eligibility will therefore depend on your current employment.
For example, your request may be denied if you are unemployed and the conditions may vary depending on whether you are an employee or self-employed.
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To obtain a consolidation loan, you must have a good credit record and have sufficient financial means to make payments for a loan that covers 100% of the debts, plus interest rates that can reach 12%.
Indeed, the applicant must be able to prove their ability to make the monthly loan payments, taking into account all of their other monthly expenses.

Good to know before subscribing

  • Know that a rejected file can be presented to another financial institution. However, the file becomes 'flagged' with each new attempt, and after two or three failures, it becomes very difficult to submit a credit application.
  • To conclude, please note that the maximum debt-to-income ratio accepted to be eligible for debt consolidation is 40%, and this procedure does not involve the mortgage in any way.
  • That is why we strongly advise you to compare the different offers with great attention and carefully choose your lending institution in order to obtain the best interest rate.
  • However, do not delay too much in putting together your file, as it is important to do so while the amount to be repaid is still manageable and financially sustainable.e

Our experienced advisors are here to listen to you.

The entire team of Poupart Syndic Inc. invites you to a free consultation in order to provide you with all the necessary information related to your debt consolidation request and the preparation of your file.
We will offer you the best possible solution, that is to say, the one that will be most advantageous for you. You can also contact us by email at the following address:

Do your debt problems prevent you from sleeping at night?

Do they create problems with your relationships and prevent you from achieving your dreams?
There are multiple solutions to debt problems that will help you get back on your feet and start fresh, even after a particularly difficult financial situation.
Know that it is normal to have financial problems. The Bankruptcy and Insolvency Act exists to protect individuals who wish to rebuild financially, and our role as a licensed insolvency trustee is to guide you through the process to help you start fresh and take a new flight after financial difficulties.
We advise you on the best solution based on your financial situation. There are three main alternatives to debt problems:
  • Debt consolidation
  • Consumer Proposal (debt settlement)
  • Last resort, bankruptcy.
Know that even this solution has some advantages, including the release of most of your debts, which can be a huge source of relief for you if you feel financially overwhelmed and can no longer make ends meet.
For all sorts of reasons, it can happen during a lifetime that a person finds themselves burdened with a high amount of debt to repay to various creditors.
This creates an enormous financial pressure that sometimes makes it difficult, if not impossible, to see the light at the end of the tunnel, as debt is generally a vicious cycle due to the interest that continues to accumulate on the amounts owed.
Debt consolidation exists to help people get back on their feet financially while keeping their credit rating intact.
In this FAQ, we specifically address the question of debt consolidation in order to help you better understand what this solution entails, who can benefit from it, and what the eligibility requirements are.
For any questions, do not hesitate to contact our authorized insolvency trustee or consult our other frequently asked questions on other relevant topics.
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