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Debt Consolidation Loans · Calgary

Debt Consolidation Loans in Calgary

Reviewed by the Calgary Lending editorial team · Last updated · How we write and check our guides

Quick answer

A debt consolidation loan replaces several debts with one new loan and one payment. It helps when the new rate is lower than your current blended rate and you stop the old balances from refilling. If you cannot repay in full, a consumer proposal or credit counselling may fit better.

Debt consolidation means taking one new loan to pay off several existing debts, so you are left with a single payment. It helps when the new loan's rate is lower than what you are paying now and when you stop the old balances from building back up.

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Please don't include your SIN or banking details. By submitting, you agree to be contacted by phone, text or email about this request and to have it shared with the one lender or licensed broker we match you with. You can opt out at any time. This is not a loan application and does not affect your credit score.

When it works

Consolidation works best when you have steady income, several balances at credit card rates, and a clear plan to keep the cards paid off afterward. A fixed term also gives you an end date, which a revolving card never does.

Ways to consolidate

  • Unsecured consolidation loan from a bank, credit union or online lender.
  • Home equity through a refinance or HELOC, if you own. Usually cheaper, but it moves unsecured debt onto your home. See home equity options.
  • Balance transfer card with a low promotional rate, if your credit is good and the balance is small enough to clear in the promotional window.

When a loan is the wrong tool

If the total debt is more than your income can realistically carry, a new loan only rearranges the problem. A non-profit credit counselling agency can set up a debt management plan, and a Licensed Insolvency Trustee can explain consumer proposals. The Financial Consumer Agency of Canada explains each option. If that is where your request points, we will say so rather than push a loan.

Add up what you owe and what you pay each month. Call 825-445-5493 or send a one-minute request. It is free, it is not a credit application, and you are under no obligation.

Frequently asked questions

Will consolidating hurt my credit score?

There can be a small dip from the new credit check and account. Over time, paying down balances and making on-time payments usually helps.

Should I close my credit cards after consolidating?

Not always. Closing old accounts can affect your credit history. The important thing is not to run the balances back up.

What if I'm turned down?

Ask why. Sometimes the answer is a secured option, a co-signer, or non-profit credit counselling instead of a new loan.

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Calgary Lending is a free referral service. We are not a lender or mortgage brokerage, we do not make credit decisions or quote rates, and approval is never guaranteed. We may receive a referral fee from the lender or broker we connect you with; it is paid by them, not you. Information on this page is general and is not financial advice.

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