The Smart Way to Consolidate Debt in Canada: P2P Loans

High-interest credit card debt is a wealth killer. If you are carrying a balance on multiple cards, you are likely paying 19% to 29% interest. There is a smarter way to manage this: Peer-to-Peer (P2P) Debt Consolidation.

The Math of Consolidation

Imagine you have $10,000 in credit card debt at 22%. You're paying roughly $2,200 a year just in interest. Now, imagine taking a P2P loan from goPeer at 12%. You essentially cut your interest costs almost in half.

Why P2P for Consolidation?

Banks often turn away borrowers who already have high credit utilization. P2P lenders, however, understand that you are taking the loan specifically to pay off that debt, which improves your financial health.

1. Single Monthly Payment: Stop juggling 5 different due dates.
2. Fixed End Date: Credit cards can drag on forever. A loan has a set payoff date (e.g., 3 or 5 years).
3. Lower Stress: Financial mental health is real.

Steps to Consolidate

1. Calculate Total Debt: Sum up all your credit cards and high-interest lines.
2. Apply for a Quote: Use goPeer's application to see what rate you qualify for.
3. Pay Off Cards: Use the loan funds to zero out your cards.
4. Don't Run Them Up Again!

What if You Can't Get Approved?

If your debt-to-income ratio is too high for a new loan, you might need a more aggressive approach:

• Homeowners: Refinance your mortgage to roll high-interest debt into your low-interest mortgage.
• Insolvency Risk: If you are drowning, look into Debt Relief programs like [consumer proposals](/ResourceCategory?category=Consumer Proposals).

Consolidating debt is the first step toward financial freedom. Check your options today.