I have bad credit … Can I do a debt consolidation?

Every day people communicate with us because they want to do a debt consolidation. Most of the time, these people come to us because they have been turned down by their financial institution because of their bad credit.

Am I eligible for a debt consolidation?

 Am I eligible for a debt consolidation?

Debt consolidation is a fairly well-known solution for Quebecers but few know the prerequisites for a consolidation loan:

  • Your credit must be good for a financial institution to grant you a loan;
  • You must have a stable job and prove that you will respect your payments;
  • You will be asked to cancel your credit cards and not take new credit;
  • In some cases you will be asked to have an endorser.

When is debt consolidation favorable?

 When is debt consolidation favorable?

For many people debt consolidation is a good tactic to reduce one’s monthly payments on one’s debts. Debt consolidation should be considered when:

  • You have income that exceeds your expenses;
  • Your credit report is healthy (and so you can have a good interest rate);
  • Your debts are mainly on credit cards;

What if my bank refuses me a consolidation?

You made a request for debt consolidation to your bank and it refused you because of your bad credit, now what? Before going to see private lenders who will consolidate your debts at an excessive interest rate, study your options.

Indeed, if you are over-indebted and looking for a solution to reduce your debts, there are solutions like the consumer proposal.

What is a consumer proposal?


The consumer proposal is an offer of repayment made to your creditors for a significantly reduced sum (up to 70% and sometimes more). If your proposal is accepted, you will make monthly payments for up to 5 years and interest will stop.

For example, if you owe $ 25,000, we could make a proposal at $ 10,000 payable over 5 years without interest. This proposal would make payments of $ 167 per month.

The consumer proposal, however, has a negative impact on your credit report. It will be more difficult to get new credit during your proposal. However, if your credit is already in bad shape, the proposal will not make the situation much worse than it already is. In addition, after your proposal you can rebuild your credit more easily.

How can I make a consumer proposal?


To make a consumer proposal, you must contact a licensed insolvency trustee. He is the only professional authorized to administer consumer proposals. Contact us and we will evaluate your situation in detail with you to guide you to financial health.

Contact us without delay!

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