Debt Consolidation Loans Canada, Consolidate Your Debt

“Good” and “bad” kinds of debt are a common way to classify various debts. Good debt, when managed properly, is debt that helps you build equity or improve your professional prospects – like a mortgage or student loans. Bad debt is generally considered any consumer debt, such as credit card debt, car loans, or line of credit debt, that can accumulate quickly if not managed properly. Bad debt is often accumulated by daily overspending, and not in the pursuit of improving your financial situation.

Debt consolidation loans are often used for debt relief to pay off bad debt that has gotten out of hand. For example, if you have accumulated thousands of dollars in credit card debt over the years, a debt consolidation loan can help you consolidate your debts into a single loan with a lower interest rate.