What Is Debt Consolidation?
Debt consolidation is a solution to debt in which a financial institution grants you a single loan. This loan allows you to reimburse your other creditors.
All your payments are therefore grouped into a single monthly payment, which is repayable over a maximum period of 5 years. The interest rate will generally be set at 12% (which should be considered a negative aspect of this type of debt solution). Furthermore, there will be no impact on your credit file, unlike a consumer proposal or personal bankruptcy.
In the event that the financial institution refuses to grant you a loan or the monthly payments do not fit within your budget, a consumer proposal may be a very interesting alternative.
You will need to prove to the financial institution that you have the ability to repay the loan on a monthly basis, in addition to covering your living expenses. If you want to know the maximum amount you could afford to repay your debts based on your current expenses, please use our monthly budget calculator.
Our Process
Debt consolidation is a complex process. Our team will assist you through the entire process.
We establish a clear and structured plan
We take care of debt consolidation
We help you restore your credit score
Debt Consolidation:
Is It for Me?
If you answer yes to any of the points below, debt consolidation may be the solution to your situation.
- Do you have a surplus every month after paying your current expenses?
- The vast majority of your debts have an interest rate of more than 12%?
- Do you have a stable job and a good credit history?
Here are the profiles of people who consult with M. Roy & Associés and obtain a consolidation loan as a solution to their debt:
- They have a good enough credit history to obtain a consolidation loan (debt-to-income ratio of 40% or less – check out our Debt-to-Income Calculator to find out yours);
- They have a permanent full-time or part-time job with a stable income;
- They are able to make payments on a loan equivalent to 100% of their debts, plus 12% interest;
- The majority of their debts have an interest rate of 12% or more.
To find out if debt consolidation is the best solution for your situation or for any other questions regarding your finances, do not hesitate to call 1-877-352-6661. You can also complete the online form to schedule a confidential and free meeting with one of our team members.
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Questions and Answers on Debt Consolidation
Debt consolidation involves taking out a loan from your financial institution. This loan allows you to pay off all of your creditors with a single loan, rather than managing several small loans each month and often only paying the minimum required amount.
Debt consolidation can be a wise option if the interest rate on your consolidation loan is lower than the interest rate on your current debts.
This type of loan usually has an interest rate between 12% and 14%. If you have credit card or store balances to pay off with rates of 19% to 29%, for example, debt consolidation is a great choice. In the opposite case – a personal loan at 7% interest or a line of credit at 9% – it would be better to consider another solution.
Make sure you can afford to make the monthly payments required to repay the loan. It is essential to establish a monthly budget.
Finally, if your financial institution requires a cosigner to grant you a consolidation loan, think twice. If you are unable to repay the loan, the institution will turn to the cosigner for payment of the outstanding balance and this situation can create friction.

What Our Customers Say
I am very satisfied with the professional and personalized service I received. They took a huge weight off my shoulders that had been weighing on me for far too long. They worked closely with me, step by step, to ensure that my needs were met, and I’m happy with the results today. Thank you so much!
Nadia coriveauThey are there to help you with your debts. And for companies in financial difficulty
Marie-Joëlle BlouinDo You Want to Avoid Bankruptcy?
For over 75 years, we have been helping individuals and businesses regain control of their finances. Contact us to get out of debt!
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