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Published in: Featured

Case study: consolidating loans makes finances easier

Case study: consolidating loans makes finances easier

Nicholas is a 43-year-old bachelor with a condominium in the metro Vancouver area. One day, Nicholas found that his finances, like his credit card charges, student loans, and other personal bills, were becoming more challenging to manage. 

To keep his finances under control, Nicholas searched online for some options and found consolidation loans. He first tried the bank, but traditional institutions thought his credit score wasn’t high enough. However, Nicholas didn’t give up and researched other solutions. He eventually found Alpine Credits and their offers on home equity loans. 

Nicholas connected with a Financial Solutions Specialists team member and inquired more about what home equity loans could do for him. Being a resident of Vancouver with over 50% of his mortgage paid, Nicholas discovered that he has a significant amount of equity built into his property. He then started a home equity loan application, which he got approval for within a few days. 

The loan covered Nicholas’ multiple debts and credit card charges, leaving him just one monthly payment towards Alpine Credits. The interest rate was comparatively lower than the interest rate on his credit card balances. 

Simultaneously, Nicholas filtered through his credit cards to determine what was necessary and what wasn’t. As credit bureaus saw that his outstanding balances were covered, Nicholas’ credit score also started increasing. During the loan repayment term, he built healthier financial habits that helped him feel more confident in managing his resources. 

How consolidation loans work?

Like Nicholas, Canadians have multiple credit sources, including credit card debt, car loans, or other mandatory debt payments. A debt consolidation loan can satisfy most, if not all, of a borrower’s outstanding obligations. As a result, a person’s monthly payment reduces to just one because they only pay towards one source. 

You can find consolidation loans at both traditional financial institutions and alternative lenders. Alternative lenders like Alpine Credits provide home equity loans that can be used to consolidate your outstanding loan payments. 

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Application process

Each lender is different and will have individual requirements, especially depending on what kind of loan you want to use towards consolidating your loans. Regardless, you can expect a similar procedure.

Find a lender

When you choose the right lender, you’ll have an offer that fits your financial situation the best.

Contact the lender

Contact the lender you’re interested in. You can inquire more and determine if their offers are really for you. You can contact Alpine Credits directly to learn more.

Apply for the loan

Banks and lenders normally have their application forms online. The application step can also go faster when you have your documents ready. Apply immediately to Alpine Credits in a few minutes.

Provide supporting documentation

ID verification, proof of income and prior mortgage information may be required.  

Receive the money

Most alternative lenders are faster than banks so the time could range from a few days to a week.

Other options besides consolidation loans 

Managing your finances can be done with other strategies, not just borrowing a loan. You have a few options if you prefer working with your resources instead of borrowing. 

  • Credit counselling— you can find excellent financial advisors at credit counselling services. They’ll happily work with you to conduct a plan to manage your current finances. 
  • Consumer proposals— as a last resort, getting a consumer proposal may also be one of your options. They involve legal processes that could extend your payment term or allow you to pay a percentage of the outstanding amount.

Why consolidation loans are a good choice 

When managed effectively, consolidation loans can have an excellent impact on your finances and your overall well-being. After you settle your outstanding credit card balances or other loans, you won’t have to think about them anymore. Having fewer payments to think about can be a good relief, even if the total compensation doesn’t change. 

Some other benefits of consolidation loans include potentially higher credit scores and lower interest rates. Since you’ll have fewer streams with a consolidation loan, your credit score can improve. The effect of more periodic payments also means you pay less towards interest. 

Conclusion: consolidate your balances with a home equity loan

Homeowners like Nicholas can access their equity as a loan to repay their outstanding loan balances. With Alpine Credits, you can access the equity in your home quickly and easily. 

Contact someone on the team of Financial Solutions Specialists or apply directly on the site. The journey to improving your credit score and financial habits starts with a consolidation loan.

Frequently asked questions

When you use a consolidation loan towards your credit cards and other bills, credit bureaus will see that you’ve paid in full. The result is a higher credit score but remember to stay on top of your consolidation loan payments. 

A bad credit score should not stop you from consolidating your outstanding balances since doing so can improve your overall creditworthiness. Getting a loan from traditional financial institutions may be more of a challenge, but Alpine Credits can support you as long as you’re a homeowner. 

If you use the loan for its original intention and meet the payments on time, you’ll benefit from the loan. 

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