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Consolidating your debt can help make your finances more manageable and improve your credit score. We break down the different options you can use for debt consolidation in BC, including consolidation loans, balance transfer credit cards, debt settlement services and debt management programs.
10 debt consolidation providers in BC
Top debt consolidation loan options in BC fall under two categories – debt consolidation loans and debt management services.
Loans Canada is a BBB-accredited third-party broker that works with the largest network of lenders in Canada.
How it can help: Loans Canada can match you with lenders offering good or bad credit debt consolidation loans in BC. Apply in less than five minutes for a loan of up to $50,000.
Cost: 6.99% - 46.96%. Most lenders don’t charge fees.
Loan terms: 3 - 60 months.
What to watch out for: It’s not a direct lender, and you’ll pay high rates for bad credit. There’s also an issue with scammers posing as Loans Canada.
LoanConnect is a BBB-accredited third-party broker that matches you with lenders based on your unique profile.
How it can help: LoanConnect matches you with several lenders offering good and bad credit debt consolidation loans in BC. Fill out a quick application for a loan of up to $50,000.
Cost: 5.99% - 46.96%. Most lenders don’t charge fees.
Loan terms: 12 - 60 months.
What to watch out for: It’s not a direct lender, and you’ll pay high rates for bad credit (up to 46.96%).
Eligibility requirements: Currents debts must total less than 60% of income
SkyCap Financial is a direct lender that approves borrowers with low credit scores. When approving your application, it doesn’t rely solely on credit score but looks at additional factors such as your employment and income to make a loan decision.
How it can help: SkyCap offers unsecured debt consolidation loans for people who can’t qualify with the bank. Apply for a loan of up to $10,000 in under five minutes and get a quick decision and direct payment to your bank account (usually in under 24 hours).
Cost: Interest rates range from 19.99% to 39.99% depending on your credit score. This lender doesn’t charge origination or prepayment fees.
Loan terms: 9 - 60 months.
What to watch out for: It offers high rates for bad credit, and there’s no guarantee it’ll report all your on-time payments to the credit bureaus.
Eligibility requirements: Min. monthly income of $3,333, full time employment/pension, min. credit score of 600
Mogo is a direct lender that offers flexible loans for good and bad credit across Canada. As a Mogo customer, you can also take advantage of prepaid credit cards, credit score tracking and investing products.
How it can help: Mogo provides unsecured debt consolidation loans to customers in BC. It also offers a 100-day money-back guarantee, so you can return your loan and get your interest back if you’re not satisfied.
Cost: Rates start at 9.9% for Mogo personal loans. The only fees you’ll pay are NSF/late payment fees of $20 to $50 if you miss a payment.
Loan terms: 6 - 60 months.
What to watch out for: There are high rates for bad credit. There are some negative Mogo reviews online, and the 100-day money-back guarantee does not apply to one of the loans (MogoLiquid).
Eligibility requirements: Min. income of $13,000 /year, min. credit score of 500
Debt.ca is a resource information service that can connect you with various debt consolidation services across BC. Its providers will present you with debt reduction options and outline a strategy based on your specific needs.
How it can help: Debt.ca is a resource site that can connect you with organizations that can help you consolidate your debt. It does not provide debt consolidation services or loans directly.
Cost: It shouldn’t cost you anything to get connected to services through Debt.ca. However, it’s likely that Debt.ca works with paid providers and collects a fee when you click on referral links.
What to watch out for: It does not offer debt management services directly but instead maintains a database of service providers that you can work with.
Eligibility requirements: $10,000+ in unsecured debt & a hardship that's preventing you from paying your creditors.
goPeer is a regulated P2P lending platform that lets you borrow anonymously from Canadians.
How it can help: Get an unsecured debt consolidation loan at a favourable rate. goPeer aims to provide low interest loans by lowering its operating costs and passing on those savings to borrowers.
Cost: Rates are 8.99% - 34.99%. You’ll be charged fees if you miss a payment.
Loan terms: 36 - 60 months.
What to watch out for: Origination fee is baked into the APR.
Eligibility requirements: Recommended income of $40,000 /year, no payday loan debt, min. credit score of 650.
The Credit Counselling Society of BC is a non-profit organization that specializes in helping customers get control of their finances. Since opening in 1996, the agency has helped over 850,000 Canadians reduce or eliminate their debt.
How it can help: The service can help you make a budget, sign up for a debt management program (including working with lenders to repay your debt) or provide a referral to a lawyer or bankruptcy firm. It does not provide debt consolidation loans.
Cost: Since the Credit Counselling Society is a non-profit, its basic services are free of charge. You may have to pay for lawyers or other services as you progress through your debt management plan.
What to watch out for: Debt management services on offer may lower your credit score.
8. Bottom and Associates Ltd
Bottom and Associates is a licensed insolvency and financial restructuring firm that helps individuals and companies manage their debt. It specializes in bankruptcy, consumer proposals and connecting customers to suitable debt management services.
How it can help: This trustee doesn’t provide debt consolidation loans. Instead, it negotiates terms for bankruptcy or a consumer proposal directly with your lenders to help reduce your overall debt load.
Cost: Consultations are free but you’ll often pay thousands of dollars to set up your debt agreement, depending on how much you owe. That said, you may be able to significantly reduce your debt, so it can be worth it if you’re willing to take a hit to your credit score.
What to watch out for: There’s no clear indication of fees. Debt agreements on offer will significantly lower your credit score. The service is only offered in New Westminster, North Vancouver and Port Coquitlam.
9. Sands & Associates
Sands & Associates is a licensed insolvency trustee that can help you negotiate a consumer proposal to manage your debt. This lets you reduce your debts without borrowing funds but can hurt your credit score.
How it can help: This trustee doesn’t provide debt consolidation loans but can help you reduce and consolidate your debts under a consumer proposal without borrowing funds.
Cost: Consultations are free but you’ll often pay fees to set up your consumer proposal. These can cost thousands of dollars depending on how much you owe. That said, you may be able to significantly reduce your debt, so it can be worth it if you’re willing to take a hit to your credit score.
What to watch out for: There’s no clear indication of fees. Debt agreements on offer will significantly lower your credit score.
10. 4 Pillars
4 Pillars was founded in 2002 and is one of Canada’s largest debt management and credit building firms. It is BBB-accredited, has very positive customer reviews online and operates 17 locations across BC.
How it can help: The service helps with bankruptcies, consumer proposals, credit building and after-care support. It operates a financial literacy program called EmpowerU and runs debt bootcamps for clients. It does not offer debt consolidation loans directly.
Cost: Consultations are free but you’ll often pay thousands of dollars in fees to arrange debt resolution, depending on how much you owe. That said, you can usually significantly reduce your debt, so it can be worth it if you’re willing to take a hit to your credit score.
What to watch out for: There’s no clear indication of fees. Debt agreements will significantly lower your credit score.
Types of debt consolidation in BC
Debt consolidation option
How it works
How much it costs
How to qualify
Unsecured debt consolidation loan
Borrow funds based on your credit score, no collateral needed
Credit score goes down if you default
Can be used to pay off all forms of debt
Rates start at 9.75% for good to excellent credit
Canadian citizen or resident
Age of majority
Meet credit score and income requirements
Secured debt consolidation loan
Secure your loan with an asset such as your home or vehicle
Asset can be repossessed if you default
Can be used to pay off all forms of debt
Secured personal loans start at 6.99%
Canadian citizen or resident
Age of majority
Have a suitable form of collateral to secure your loan
Consolidate your credit card debt onto a single card with a lower interest rate.
Usually comes with a very low promo offer, rates tend to increase after 6–10 months.
Promotional rate between 0% and 3.5%. After promo, rates range from 8.99% to 19.99%. Additional transfer fees from 1% to 3% of amount transferred
Canadian citizen or resident
Age of majority
Meet credit score and income requirements
Debt management program
Financial experts review your budget and negotiate with your creditors to consolidate your debts into an affordable payment plan, with little or no interest.
Unlike debt settlement programs, you’ll still repay everything you owe but your payments should be more affordable.
Can be through a non-profit credit counselling agency or a for-profit firm.
Free with a credit counselling organization, but you may have to pay for lawyers or other services as you progress through your debt management plan. You may need to pay a set-up fee and a monthly maintenance fee with a for-profit firm.
Canadian citizen or resident
Age of majority
Meet with a credit counsellor, who will determine your eligibility
Debt settlement
Services that negotiate on your behalf with your creditors to pay off your debts in one lump sum that’s lower than your outstanding balance.
Can significantly decrease your credit score.
Consultations are free but you’ll often pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe.
Canadian citizen or resident
Age of majority
Meet the minimum debt amount
Consumer proposal
Formal, legally binding process administered by a Licensed Insolvency Trustee (LIT).
LIT works with you to develop an offer to pay creditors a percentage of what is owed to them or extend the time you have to pay off the debts, or both.
Consultations are free but you’ll often pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe.
Canadian citizen or resident
Age of majority
Must have between $1,000 and $250,000 in debt
Can still apply if over $250,000, but may be subject to different rules
When is it a good idea to get a debt consolidation loan?
You may want to consider a debt consolidation loan in the following circumstances:
Your debt has become unmanageable. Debt consolidation loans can help you consolidate all of your debts into one easy payment. This will help you make your payments on time and could put you in a position to pay your debt off faster.
You want better terms. You’ll usually get better interest rates with debt consolidation in BC. You may also be able to extend your term. This can help you save money on interest and get smaller monthly payments.
You’re trying to build credit. Consolidating debt can make it easier for you to make your payments on time, which can increase your credit score. Just make sure you can afford your new monthly payment before you sign onto a loan.
How to apply for a debt consolidation loan in Canada
Compare lenders. Compare loan amounts, interest rates, fees and terms between multiple lenders to find one that suits your needs.
Apply online or in person.Go to your lender’s website to start an online application, or visit a branch to apply in person. Some lenders operate solely online.
Provider personal information.Input details like your name, date of birth, address, phone number and email.
Provide financial information.Provide basic details about your employment, income and the bank account into which you want funds to be deposited.
Verify your details.You’ll likely be asked to provide proof of ID, proof of residency and proof of income. Examples include your driver’s license, passport, recent pay stubs, tax Notice of Assessment and utility or bank statements showing your name and address.
Agree to a credit check.Give your lender permission to check your credit score as part of the application process. Some lenders don’t require a credit check, but you may face high rates.
Submit your application. Many lenders provide application decisions in 1 to several business days, although it could take up to a week. If approved, it may take another 1-2 business days to receive funds.
BC personal finances at a glance
Between credit cards, lines of credit and other loans (excluding mortgages), British Columbians have a significant amount of debt when compared to the average income.
Debt in BC
According to Equifax, the average non-mortgage debt for BC residents in the second quarter of 2022 was $21,940. Residents of Vancouver carry a slightly higher amount of debt ($22,760) for the same time, while the average level of debt for people across Canada was $20,744.
Income in BC
According to Statistics Canada, the average income in BC was $40,800 in 2020. If you break totals down by city, the average income varies slightly:
Vancouver was $40,800
Kelowna was $41,600
Victoria was $45,600
This includes all types of income, such as employment, rental, investment, retirement and government benefits.
If you want to maintain your credit score, you can take advantage of unsecured and secured debt consolidation loans and balance transfer credit cards. If you're unable to qualify for loans, it could be time to look into credit counselling or a debt management firm such as a licensed insolvency trust.
To be eligible for a debt consolidation loan in BC, you'll usually need to have a decent credit score and make enough income to cover your monthly payments in addition to the rest of your expenses. You may also be expected to show that you have stable housing and employment before you qualify.
You can expect to pay 4.7% to 32% for debt consolidation loans in BC. The rates you get for your loan will depend on personal factors such as your credit score, income, debt-to-income ratio and whether you can secure your loan with an asset such as your house or vehicle.
Yes, lenders will perform a hard credit check when you apply for a debt consolidation loan, which will temporarily impact your credit score. However, your score will bounce back if you make debt repayments on time and in full and avoid applying for too many credit products at once.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
Compare the best debt relief companies in Canada to help you get your finances back on track.
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Between credit cards, lines of credit and other loans (excluding mortgages), British Columbians have a significant amount of debt when compared to the average income.