Roll your credit cards, payday loans, and lines of credit into a single fixed-payment loan. Average Canadian customer cuts $3,200 in annual interest and finishes 4+ years sooner.
Same debts. Same lender APRs. Three completely different outcomes.
Status quo
Minimum payments only
Pay each card's minimum every month. Banks like this most.
Monthly$645
Months600
Total interest$13,311
DIY · save the most
Avalanche method
Pay $200 extra on the highest-APR debt. Snowball the freed payment as each clears.
Monthly$845
Months270
Total interest$4,659
Simplest · most predictable
Consolidate to one loan
Replace all debts with one 60-month loan at 14.99% APR.
Monthly$381
Months60
Total interest$6,833
Consolidation wins on simplicity.One payment, one due date, no juggling. The avalanche method wins on absolute interest if you're disciplined — but most Canadians don't sustain it past month 6.
6 METHODS, COMPARED
Every way to consolidate — and when each wins
The right method depends on how much debt you have, what credit score you have, and whether you own a home.
Method
APR
Amount
Term
Credit needed
Setup cost
When this wins
Personal LoanRECOMMENDED
6.99% – 34.99%
$1k – $50k
12 – 84 mo
580+
None
Most situations — fixed payment, fixed payoff date
HELOC
5.95%+ (Prime+0.50%)
Up to 65% equity
Revolving
660+
$250 – $1,000
You own a home and want the lowest rate available
Balance Transfer Card
0% intro · 19.99% after
Up to card limit
6 – 12 mo promo
660+
1 – 3% transfer fee
Small debt + you can repay during the promo window
Personal Line of Credit
Prime + 1.99% (6.94%+)
$5k – $50k
Revolving
680+
None
Variable monthly needs · only pay interest on draws
Debt Management Plan
0% (renegotiated)
Existing debts
3 – 5 yrs
Any
$0 – $50/mo
Income exists but rates are crushing you · non-profit
Consumer Proposal
0% (debt settled)
Debt cut 50 – 80%
Up to 5 yrs
Any
$1.5k – $2.5k (in plan)
Debt is over $5k and you can't repay in full
HONEST ANSWER · NO SIGNUP
Is consolidation actually right for you?
Most lenders try to sell you a loan no matter what. We'll tell you when a DMP, a consumer proposal, or just paying off your cards is the better answer.
$2k$25k$50k$100k
OUR HONEST READ
Personal loan consolidation fits perfectly
Stable income, decent credit, debt under control — you're the ideal candidate. Expect 9-15% APR on a personal loan, fixed monthly payment, debt-free in 3-5 years. The math saves you thousands.
FEATURED FOR CONSOLIDATION 250,000+ Canadians funded
Spring FinancialPersonal loans up to $35,000 · Builds credit
Consolidate up to $35k and rebuild credit.
Spring Financial pairs your consolidation loan with a credit-builder program that reports every payment to Equifax. Most customers see +30 to +80 points in the first 12 months — on top of saving on interest.
Soft credit check only at pre-qualification. APR 9.99%-34.99% based on credit profile. Min credit score 600. Available across all provinces. Federally regulated lender (FCAA, Bank of Canada-registered).
BEFORE
$847
monthly across 4 debts
Weighted APR: 32.4%
↓
AFTER WITH SPRING
$381
monthly · one payment
APR: 14.99% · saves $466/mo
$11kSAVED
FIVE STEPS · UNDER A WEEK
From "I have a stack of debt" to "one easy payment"
1
List every debt
Open a spreadsheet or use our calculator above. Include balance, APR, minimum payment, and statement date. This takes 20 minutes and is the most important step.
2
Pre-qualify (soft pull)
Get your real consolidation rate without affecting your credit score. We match you with lenders in 60 seconds based on your debt amount and credit tier.
3
Apply with one lender
Submit ID, proof of income, and bank statements. Hard credit pull at this stage (5-10 points temporary drop). Decision in 24 hours.
4
Pay off your existing debts
Funds land in 1-3 business days. Pay each creditor in full and get written confirmation. Some lenders will pay creditors directly — that's preferred.
5
One payment, freedom date
Set up auto-pay for the loan. Mark the freedom date on your calendar. Don't reopen the old cards. In 3-5 years, you're debt-free.
AFTER YOU CONSOLIDATE
The 6 rules that decide whether you stay debt-free
Roughly 60% of Canadians who consolidate end up back in debt within 3 years. These rules are what separate the other 40%.
✂
Cut up or freeze your cards
Literally. Or freeze them in a block of ice in the freezer (we're not joking — it works). The freed credit is the #1 cause of consolidation failure.
🔁
Cancel automatic subscriptions on those cards
Move Netflix, gym, phone, insurance to your debit card or the loan account. If the cards are dormant, leave them dormant.
💰
Build a $1,000 emergency fund first
Before any extra principal payments. Without it, the next car repair becomes a new credit card balance and you're back where you started.
📊
Track your loan balance monthly
Watching the number go down is the single biggest motivator. Most loan portals show a payoff date — bookmark it.
📵
Unsubscribe from "you're pre-approved" emails
Every major card issuer markets harder to recent consolidators because they know the pattern. Filter them. Block them.
🎯
Round up your payment
Loan payment is $487? Pay $500. The extra $13/mo can shave 6+ months off a 5-year loan and saves hundreds in interest.
⚠ SCAM RADAR
"Debt relief" scams that target consolidators
If a "debt relief company" makes any of these moves, walk away — they're not licensed and you'll end up worse off.
✗"Debt elimination" or "settlement guaranteed in 60 days"
ⓘSettlement is real but slow (12-36 months) and damages your credit. Anyone promising fast erasure is selling a scam.
✗Asks you to stop paying creditors immediately
ⓘStopping payments tanks your credit, drives accounts to collections, and may trigger lawsuits before any "negotiation" happens.
✗Charges a fee before settling or consolidating
ⓘLicensed Insolvency Trustees fold their fee INTO the proposal. Non-profit credit counsellors charge $0-50/mo. Upfront-fee = scam.
✗"Not bankruptcy or consumer proposal" but sounds the same
ⓘOnly an LIT can legally settle debts in Canada via consumer proposal. Anyone else doing this is operating illegally.
✗Pressures you to sign today / today only
ⓘA real consolidation rate is good for 7-30 days. Anyone using urgency tactics is a sales operation, not your advocate.