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Best debt consolidation loans in Alberta

Compare options to consolidate your debt and simplify your finances.

Debt consolidation loans combine your debts into one loan so you’re left with making just one payment monthly. They’re a legitimate option if you’re looking to simplify your finances. But keep in mind that a consolidation loan can cost more over time since it can involve extending your loan term – you get a lower monthly payment by doing this, but pay more interest over time.

Read this guide to find out about the different options for debt consolidation in Alberta and choose which one is best for you.

Best debt consolidation loans in Alberta

How we found the best debt consolidation loans in Alberta

To find the best debt consolidation loans in Alberta, Finder experts collected more than 70 points of data for more than 60 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. Keep in mind, that the products listed are based on providers available through Finder and online in the Canadian loans marketplace. These loans are not representative of the entire market. Read more about the Finder personal loan ratings and review methodology.

464+

hours invested

112

lenders vetted

4,608

data points analyzed

1. Loans Canada

Loans Canada Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$300 – $50,000
Loan amount
6.99% – 46.96%
APR
3 - 60 months
Term
Loans Canada is an online loan search platform with a large network of lenders. Fill out one application and get your matches for free. You can get a secured or unsecured debt consolidation loan. Full Review

Why it's one of the best

  • Get access to a large lender network. Loans Canada works with over 60 verified lenders.
  • Get approved. Receive personal loan offers that match your profile.
  • Work with an established company. Loans Canada has been in business since 2012. It has BBB accreditation with an A+ rating.
  • Easy online application
  • Quick deposits
  • High loan amounts
  • High rates for bad credit
  • No online quotes provided
  • Limited to its network
Loan amount $300 – $50,000
APR 6.99% – 46.96%
Term 3 - 60 months
Min. credit score 300
Fees No application, origination or brokerage fees
Turnaround time Receive funds within as little as 24 hours.
Serviced provinces All of Canada

Finalist — Best Personal Loan Search Platform category

Loans Canada earned the Finalist award in the Best Personal Loan Search Platform category in the Finder: Personal Loans Customer Satisfaction Awards 2023. Loans Canada scored 75.15% in the overall customer satisfaction score and secured a spot in Canada's Top 15 Best-Rated personal loan providers in 2023.

2. SkyCap Financial

SkyCap Installment Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $10,000
Loan amount
19.99% – 39.99%
APR
9 - 60 months
Term
SkyCap Financial is a private lender of unsecured personal loans for fair to good credit scores, which you can use to consolidate debt. Full Review

Why it's one of the best

  • Work with a reputable lender. SkyCap Financial is known for its friendly, professional customer service and is BBB accredited with an A+ rating.
  • Get approved fast. Get your personal loan as soon as the same business day.
  • Get some leniency. Rather than fixating on your credit score, SkyCap will take a more holistic approach and look at your overall finances.
  • No prepayment penalties
  • Apply online in minutes
  • Funding on the same day or next day
  • People with good credit may get better offers elsewhere
  • High rates for lower credit scores
Loan amount $500 – $10,000
APR 19.99% – 39.99%
Term 9 - 60 months
Min. credit score 575
Fees No fees except $50 NSF fee
Turnaround time 24 hours
Serviced provinces All provinces and territories except Quebec and Nova Scotia

Most Recommended + Best-Rated

SkyCap Financial made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

3. Spring Financial

Spring Financial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $35,000
Loan amount
10.8% – 46.99%
APR
6 - 60 months
Term
Spring Financial offers fast debt consolidation loans. If you don't qualify for a debt consolidation loan, however, it'll offer you its credit builder loan. With this loan, you won't access the loan funds until after you've made all your payments on time. Full Review

Why it's one of the best

  • Get a loan from an established private lender. Spring Financial has been providing loans since 2015 with headquarters in Vancouver, BC.
  • Improve your credit score. Spring Financial reports payments to the credit bureaus so you can increase your credit score.
  • Get quick funding. If you provide the required documents on time, you can get your personal loan the same day you apply.
  • 100% online
  • Fast funding via e-Transfer
  • No prepayment penalties
  • High rates for bad credit
  • C- BBB rating, received complaints about the credit builder loan
Loan amount $500 – $35,000
APR 10.8% – 46.99%
Term 6 - 60 months
Min. credit score 500
Fees No fees except $30 NSF fee
Turnaround time Within 24 hours
Serviced provinces All of Canada

Most Recommended + Best-Rated

Spring Financial made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

4. LoanConnect

LoanConnect Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $50,000
Loan amount
8.99% – 46.96%
APR
3 - 120 months
Term
LoanConnect maintains a large database of lenders and matches you with several debt consolidation loan offers based on your unique profile. It's been in business since 2016 and is BBB accredited with an A+ rating. Full Review

Why it's one of the best

  • Save time. Your application will be cast wide and you'll get your results right after you apply.
  • Easily compare offers. Compare offers from multiple lenders and log in regularly to see if new offers are available.
  • Get approved. LoanConnect works with different types of lenders to help different types of borrowers find a loan.
  • Secured and unsecured options
  • Pre-approval in five minutes
  • Many bad credit loan options
  • BBB-accredited with an A+ rating
  • Fast funding
  • Not a direct lender
  • High rates for bad credit
  • Miss out on offers from lenders not partnered with LoanConnect
Loan amount $500 – $50,000
APR 8.99% – 46.96%
Term 3 - 120 months
Min. credit score 300
Fees No application, origination or brokerage fees
Turnaround time Receive funds within as little as 24 hours.
Serviced provinces All provinces

Most Recommended

LoanConnect made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

5. Mogo

Mogo Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $35,000
Loan amount
9.9% – 46.96%
APR
6 - 60 months
Term
Mogo is a Canadian fintech company that offers various financial products, including personal loans for debt consolidation. Loans are available for good and bad credit. Full Review

Why it's one of the best

  • Get an instant decision. Get a free quote within a few minutes without affecting your credit score.
  • Apply easily online. Set up an account within minutes and get approval and funding within one to two days.
  • Work with an established company. Mogo was founded in 2003 and is traded on the Toronto Stock Exchange.
  • Convenient mobile app
  • No prepayment penalties
  • Bank-level security
  • High rates for bad credit
  • Some negative Mogo reviews online
  • Loans are powered by Lendful and easyfinancial
Loan amount $500 – $35,000
APR 9.9% – 46.96%
Term 6 - 60 months
Min. credit score 500
Fees Non-sufficient funds fee of $20 to $50
Turnaround time Within 24 hours
Serviced provinces British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island

Best-Rated

Mogo made it to the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

6. goPeer

goPeer Personal Loan
Finder Score:
★★★★★
Go to site
$1,000 – $35,000
Loan amount
8.99% – 34.99%
APR
36 - 60 months
Term
goPeer is a peer-to-peer lending platform offering unsecured personal loans, which you can use for debt consolidation. Rather than borrowing from a direct lender, you'll borrow from multiple investors. People with strong finances are more likely to get approved since they have less risky applications. Full Review

Why it's one of the best

  • Get a competitive rate. This platform doesn't have the same high operating costs as brick and mortal financial institutions, so it can pass on those savings to the borrower via low rates.
  • Easy online application. You won't ever need to visit a branch to provide paperwork.
  • Flexible loan amounts. Borrow as little as $1,000 and as much as $35,000.
  • 100% online
  • No prepayment penalties
  • Use the loan for any purpose, such as debt consolidation or making a large purchase
  • Higher rates for riskier profiles
  • Origination fees
Loan amount $1,000 – $35,000
APR 8.99% – 34.99%
Term 36 - 60 months
Min. credit score 600
Fees Origination fee varies
No application or prepayment fees
Turnaround time Receive a response within 24 hours of your loan application
Serviced provinces All provinces

7. Lendful

Lendful Personal Loan
Finder Score:
★★★★★
$5,000 – $35,000
Loan amount
10.78% – 22.48%
APR
6 - 60 months
Term
Lendful offers debt consolidation loans to people with near prime credit. It's a legitimate option if you can't get approved by a bank, but you're looking for better options than bad credit loans. Full Review

Why it's one of the best

  • Work with a reputable lender. Lendful is a subsidiary of Peoples Group, a federally regulated financial institution, and has been in business since 1985.
  • Get approved with no impact to credit score. You can get a formal loan offer in as little as 1 business day without impacting your credit score.
  • Get a reasonable rate. Receive offers that match your financial situation.
  • No prepayment penalties
  • Apply online in minutes
  • Funding by the next business day
  • Bad credit applicants will not qualify
  • High rates for lower credit scores
Loan amount $5,000 – $35,000
APR 10.78% – 22.48%
Term 6 - 60 months
Min. credit score 600
Fees NSF fee: $50
Turnaround time Within 1 business day
Serviced provinces All provinces

8. Fairstone

Fairstone Personal Loans
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $50,000
Loan amount
19.99% – 39.99%
APR
6 - 120 months
Term
Fairstone offers secured and unsecured debt consolidation loans. Apply online or visit one of hundreds of locations across Canada. Full Review

Why it's one of the best

  • Get a quote with no impact to credit score. Fairstone will only do a soft credit check to pre-approve you for a loan.
  • Get funded fast. Receive your debt consolidation loan funds as soon as the same day.
  • Work with an established lender. Fairstone has been providing financial services to Canadians for almost 100 years.
  • Quick and easy application
  • Multiple loan types (unsecured, secured, mortgages)
  • No prepayment penalties for unsecured loans
  • High rates for low credit
  • Potential for extra fees
  • Prepayment penalties for secured loans
  • Several negative customer reviews
Loan amount $500 – $50,000
APR 19.99% – 39.99%
Term 6 - 120 months

9. easyfinancial

Easyfinancial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $100,000
Loan amount
9.99% – 46.96%
APR
9 - 120 months
Term
easyfinancial helps Canadians access financing when banks or credit unions aren't an option. It offers secured and unsecured debt consolidation loans across Canada online and in hundreds of locations. Full Review

Why it's one of the best

  • Get a quick quote. Apply in minutes with no commitment and it won't affect your credit score.
  • Work with a well-known lender. easyfinancial is one of the biggest lenders of nontraditional personal loans in Canada.
  • Improve your credit score. According to easyfinancial, one in three customers graduate to prime rates after making regular, on-time repayments.
  • Secured and unsecured loan options
  • 2% rate reduction with a co-applicant
  • BBB-accredited with an A+ rating
  • Steep rates for bad credit
  • Many negative customer reviews
Loan amount $500 – $100,000
APR 9.99% – 46.96%
Term 9 - 120 months
Min. credit score 300
Fees you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees
Turnaround time Approval within 30 minutes
Serviced provinces All of Canada

10. Magical Credit

Magical Credit Installment Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$1,500 – $20,000
Loan amount
19.99% – 46.8%
APR
12 - 60 months
Term
Magical Credit specializes in online personal loans for people with fair to bad credit and/or low income. It's been in business since 2014 with offices in Concord and North York, Ontario. Full Review

Why it's one of the best

  • Get a quick loan. Apply online and validate your information with instant bank verification to get a fast decision (funds sent within hours after approval).
  • Rebuild your credit. Magical Credit reports on-time payments to the credit bureaus to increase your credit score.
  • Use non-employment income to qualify. Magical Credit accepts many types of income, such as most government benefits, private pensions and maternity benefits.
  • Receive funds within as little as 24 hours
  • Accepts child tax credit, EI, CPP, OAS, private pensions and more
  • Refer-a-friend program
  • High APRs ranging from 19.99% to 46.8%
  • May charge an administration fee
  • Must show proof that you've been employed for six months (if applicable)
Loan amount $1,500 – $20,000
APR 19.99% – 46.8%
Term 12 - 60 months
Min. credit score 300
Fees A single administration fee of $194
Turnaround time Receive funds within as little as 24 hours
Serviced provinces Canada-wide (excluding Manitoba, Saskatchewan and Quebec)

Most Recommended

Magical Credit made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

11. ATB

ATB Personal Loan
Finder Score:
★★★★★
N/A
Loan amount
7.2% – 14.2%
APR
12 - 60 months
Term
ATB is a Crown corporation serving residents of Alberta. It offers secured and unsecured personal loans to people with good to excellent credit. Full Review

Why it's one of the best

  • Work with an established lender. ATB has been in business since 1938 and serves more than 800,000 clients. It is regulated by the Alberta Superintendent of Financial Institutions (ASFI).
  • Get flexibility. Choose between a fixed and variable rate and repay your loan any time without penalty.
  • Get a competitive rate. Get a rate as low as the ATB Prime Rate if you use personal assets as collateral.
  • No prepayment penalties
  • Apply online for unsecured personal loans
  • Favourable rates
  • Slower process
  • Strict eligbility criteria
  • Bad credit may not qualify
  • More documents required
Loan amount N/A
APR 7.2% – 14.2%
Term 12 - 60 months
Fees Unknown
Turnaround time Varies
Serviced provinces Alberta

Finder: Personal Loan Consumer Satisfaction Awards

In 2023, we completed the Finder: Personal Loan Consumer Satisfaction Awards — an annual ranking of personal loan providers in Canada, based on customer satisfaction feedback. Read more about these awards and the methodology used to find the best personal loan providers, based on customer service scores.

Types of debt consolidation in Alberta

  1. Unsecured debt consolidation loans
  2. Secured debt consolidation loans
  3. Balance transfer credit card
  4. Consumer proposal
  5. Orderly Payment of Debts
  6. Debt settlement
  7. Debt management program

1. Unsecured debt consolidation loans in Alberta

Unsecured debt consolidation loans rely entirely on your credit score to determine your eligibility. Borrow up to $50,000 without the need for collateral or a cosigner. Just be aware that you’ll pay higher interest rates when you apply with bad credit.

  • Who’s it best for? It’s best for people with good credit who don’t have an asset to secure their debt.
  • When should I avoid it? Avoid it if you have bad credit or you want to get lower interest rates by securing your loan with collateral.
  • How much is it? You’ll pay 9.75%–46.96% based on your credit score. You could also pay origination fees, late/NSF fees or prepayment fees, depending on your lender.

2. Secured debt consolidation loans

These loans rely less on your credit score. Instead, you’ll use an asset such as your home or vehicle to secure your loan. This will give you lower interest rates than unsecured loans, but you may be required to give your asset up if you default on the loan.

  • Who’s it best for? It’s best for people with good or bad credit who own a valuable asset.
  • When should I avoid it? Steer clear of these loans if you don’t own any assets or if you’re concerned you might struggle to make your repayments.
  • How much is it? It starts at 6.99%. You could also owe origination fees, prepayment fees or late/NSF fees.

3. Balance transfer credit card

Balance transfer cards let you consolidate your credit card debt at a lower interest rate. These cards often come with a low promo offer (typically between 0–3.5%). Rates increase after 6–10 months, so it’s best to pay your balance down quickly once you transfer funds.

  • Who’s it best for? It’s best for people dealing exclusively with credit card debt.
  • When should I avoid it? Consider another option if you don’t want to pay balance transfer fees or you don’t think you can pay your balance off during the promo period.
  • How much is it? Many cards offer a promo interest rate between 0% and 3.5%. When your rates increase after the promo, you’ll pay between 8.99% and 19.99%. You’ll also pay balance transfer fees between 1% and 3% of the amount transferred.

Compare balance transfer credit cards

4. Consumer proposal

Consumer proposals are formal agreements negotiated on your behalf by a Licensed Insolvency Trustee (LIT). Your LIT will negotiate with your creditors to try to reduce your payments or extend the time you have to pay your debts (or both). These agreements cannot include secured debts like a mortgage or auto loan.

  • Who’s it best for? It’s best for people with bad credit who don’t qualify for debt consolidation financing.
  • When should I avoid it? Think about something else if you don’t want your credit score to go down or you need to consolidate your secured debts.
  • How much is it? Consultations are free, but you could be on the hook to pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe.

Sample of companies that help with consumer proposals in Alberta

Consultations are free. However, you’ll need to pay fees if you decide to go with their services.

CompanyOverview
MNP Debt
  • Helps with credit counselling, bankruptcy and consumer proposals
  • Over 60 years of experience with offices across Central Alberta
  • Free consultation, but fees are undisclosed
Grant Thornton Limited
  • Helps with credit counselling, bankruptcy and consumer/corporate proposals
  • Large firm established in 1924 with offices across Central Alberta
  • Free consultation, but fees are undisclosed

5. Orderly Payment of Debts

Orderly Payment of Debts (OPD) is a debt repayment arrangement that’s available in Alberta only through Money Mentors. You apply to the court for an order to consolidate your unsecured debt into one monthly payment with an interest rate of 5% and a repayment period of up to five years.

  • Who’s it best for? It’s best for people looking for a low fixed interest rate.
  • When should I avoid it? Steer clear if you don’t want your credit score to go down or you need to consolidate secured debts such as your house or car loan.
  • How much is it? In addition to the interest rate, you may be charged a fee to administer the program.

6. Debt settlement

A licensed insolvency trustee can help you negotiate with your creditors to reduce your debt without claiming bankruptcy. You won’t have to pay off all the money you owe and your monthly payments will usually be lower. However, debt settlement will significantly decrease your credit score.

  • Who’s it best for? It’s best for people who can’t afford their debt and want to stop punitive action by creditors.
  • When should I avoid it? Think about something else if you don’t want your credit score to go down, or you don’t want to pay high fees.
  • How much is it? Consultations are free, but you may need to pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe.

Sample of organizations that help with debt settlement in Alberta

CompanyOverview
Debt.ca
  • Website that provides a comprehensive list of debt settlement services in Alberta.
  • Free to get matched with a service that fits your needs.
  • Doesn’t provide debt settlement services or loans directly.

Go to site

Credit Counselling Society
  • Operational since 1996, has helped over 850,000 Canadians reduce their debt.
  • Organization negotiates with your creditors on your behalf to reduce the debt you owe or give you a longer time frame for repayment.
  • Accredited non-profit so basic services are free of charge.

7. Debt management program

Debt management programs are provided by non-profit credit counselling firms and for-profit debt management firms. These organizations negotiate with your creditors to help reduce your interest rates. Unlike debt settlement programs, you’ll still repay everything you owe, but your payments should be more affordable.

  • Who’s it best for? It’s best for people who have the money to repay their debts but want to reduce their monthly payments or interest rates.
  • When should I avoid it? Consider another option if you can’t afford your monthly payments or you need to consolidate secured debts.
  • How much is it? Free with a credit counselling firm in most cases, though you may pay for lawyers or other services. You’ll typically pay a set-up fee and monthly maintenance fee with a for-profit firm.

Sample of organizations that help with debt management in Alberta

These programs are usually non-profit, but you may have to pay fees for certain services.

Non-profitOverview
Credit Counselling Society
  • Has helped over 850,000 Canadians reduce or eliminate their debt since 1996.
  • Basic services are free of charge.
  • You may have to pay for lawyers or other services as you progress through your debt management plan.
Money Mentors
  • Offers non-profit credit counselling, debt consolidation (including OPDs) and financial education.
  • Founded in 1997, more than $230 million in debt repaid by clients
  • Voted best credit and debt counselling services in Alberta
  • Six locations across the province

How do debt consolidation loans work?

The main benefit of debt consolidation loans is that you can combine all of your debts into one place. Basically, you take out one big, low-interest loan, which you use to pay off all of your other debts. You then only have one large debt repayment to make instead of multiple small ones. In general, you’ll have to pay back a debt consolidation loan in monthly installments over a set term, such as five years.

Debt consolidation example: Josh has $11,000 of credit card debt

Josh lives in Edmonton and has a balance of $5,000 on one credit card and $6,000 on another credit card (both at 20% APR). He decides he wants to be debt free in three years. In order for that to happen, Josh would have to start paying a total of $410 per month on credit card repayments. By the end of the three years, he would pay $3,701.01 in interest.
Josh instead searches for a debt consolidation loan in Edmonton and finds one at 9% APR over three years. His total monthly payments are $349.80, with only $1,592.69 going towards interest. So, by opting for a debt consolidation loan, Josh saves around $2,108.32.

Before consolidationAfter consolidation
Balance$11,000.00$11,000.00
Interest rate20%9%
Year(s) to pay off33
Monthly payment$410$349.80
Total interest paid$3,701.01$1,592.69
Total balance paid$14,701.01$12,592.69

How to compare debt consolidation loans in Alberta

There are many ways to compare debt consolidation loans to make sure you’re getting the best deal. Look for the following factors when choosing a lender:

  • Low interest rates. Look for the lowest interest rates possible and make sure that they fall below the rates on all of your individual debts. Learn more about low interest loans.
  • Longer term. If you’re struggling to make your payments every month, aim for a longer term with smaller monthly payments. Keep in mind that you’ll pay more in interest the longer your loan term is.
  • Low minimum credit score. Before you apply for a debt consolidation loan, you should find out what your credit score needs to be to qualify.
  • No fees. Some lenders will bury hidden fees and charges in your contract, so make sure to read the fine print thoroughly.

How can I apply for a debt consolidation loan?

Once you’ve found a debt consolidation lender in Alberta that you feel comfortable with and are ready to start your application, you’ll need to follow a few simple steps:

  1. Fill out your application. You’ll need to supply your personal and banking info through an online or in-person application.
  2. Verify your ID and income. Bring or send in documents to show proof of income (pay stubs, tax returns etc.) and proof of identity (licence or passport).
  3. Apply for loans selectively. Avoid applying for several loans at once since your credit score will go down every time a lender checks your credit.

What types of debt can I consolidate in Alberta?

Understanding what types of debt you can consolidate in Alberta is the first step toward deciding which options you might want to consider, if any at all. People generally consolidate the following kinds of debts:

Strategies Albertans can use to take control of debt on their own

If you’re not ready for debt relief, and can’t qualify for a debt consolidation loan, you have a few strategies to reduce your debt more quickly.

  1. Try to negotiate with creditors yourself. Ask your creditors to reduce your interest rate or your principal or to extend your loan term. Be firm about what you can afford each month, and escalate the call until you reach somebody who can help.
  2. Use a trusted method for debt repayment. Use a trusted method such as the avalanche or snowball method for debt repayment to strategically pay off debts quickly.
    • The avalanche method. With this method, you start by paying off debts with the highest interest first. If you don’t know which debt has the highest interest, check your financial statements to see what interest rates you’re being charged on each of your debts.
    • The snowball method. With this method, you pay off the smallest debts first. The advantage is that smaller loans won’t get a chance to grow into bigger, unmanageable loans, which simplifies your debt. However, it could cost more in the long term than if you were to use the avalanche method.

Frequently asked questions

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