Debt Consolidation Loan

Why a Consolidation Loan?

A consolidation loan is designed to replace multiple loans with a single, easy to manage loan, often at a lower interest rate than that charged by individual creditors.  For instance, personal loans, lines of credit, student loans and credit card balances are examples of loans that could be consolidated. 

Benefits of a Consolidation Loan?

There are many benefits to a consolidation loan.

Save Money

If your debt includes particularly high interest credit card debt, consolidating it into a consolidation loan could save you a great deal of money in terms of interest.

Simplify Your Finances

Rather than keeping track of multiple debts, at multiple rates, at multiple creditors, a consolidation loan puts all the debt together into one loan at one place with a set repayment schedule.

For example, if you consolidated your credit card debt at 18% into a loan at 8%:

Debt Interest Saved
Over 36 Months
$10,000 $1,350
$15,000 $2,000
$20,000 $2,500
For illustration purposes only.

Lower Monthly Payments

When you consolidate your debt, you should be able to lower the amount of your monthly payment.

Flexibility to Meet Your Needs

Our experts will work with you to select a term (one to three years), amortization period and payment frequency (weekly, bi-weekly, monthly) that works for your situation. Working together, we may be able to lower your total monthly payment and even help you pay off all your debt sooner.

Consolidation Loan Considerations

When it comes to a consolidation loan, there are a number of factors to consider and discuss with a Coastal Community expert.

Rate

We offer fixed and variable consolidation loan rates; both types of rates offer benefits depending on your situation.  A fixed rate loan involves an interest rate that is set for the duration of your loan. The benefits of a fixed rate loan include consistent monthly payments and monthly budget control—you’ll have the peace of mind knowing exactly how much you owe each month.

A variable rate loan involves an interest rate that fluctuates depending on market conditions. The benefit of a variable rate consolidation loan is the ability to take advantage of falling interest rates.  Be sure to discuss both options with an expert at Coastal Community, so you can get the rate that works best for your situation.

Terms

A term is the length of time for which your loan agreement with Coastal Community is valid. Our consolidation loans have a minimum term of one year and a maximum term of three years.

Payment Options

You can arrange to make payments weekly, bi-weekly or monthly. You can also pay off part or the entire amount of your loan at any time without penalty.

What You’ll Need When You Apply

Before you begin the application process, please make sure you have the following information:

  • Your Social Insurance Number (SIN)
  • If applicable, your co-applicant's SIN, date of birth, employer's name and phone number.
  • Monthly expenses such as rent, mortgage payments, alimony, etc. 
  • Assets including bank accounts, investments, vehicles, real estate, etc.
  • Liabilities including car payments, loans, credit card debt, etc.

How to Apply

Call or visit your nearest branch.