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10 debt consolidation providers in BC
There are many ways to consolidate debt in BC. Find your solution using this guide.
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 providers of debt consolidation in BC
1. Loans Canada
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: 5.40% - 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.
- Eligibility requirements: Steady source of income
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
3. SkyCap Financial
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 12.99% 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 $1,600, stable employment, min. credit score of 550
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
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 8.00% - 33.92%. 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 600.
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: At least $10,000 in unsecured debt, a hardship that is preventing you from paying your creditors.
7. Credit Counselling Society
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.
- How it can help: 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||Rates start at 5.99% for good to excellent credit|
|Secured debt consolidation loan||Secured personal loans start at 5.4%|
|Balance transfer credit card||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|
|Debt management program||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.|
|Debt settlement||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.|
|Consumer proposal||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.|
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.
BC personal finances at a glance
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.
Frequently asked questions
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