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.
A "Best for" pick is a partner that scored high in a category based on Finder Canada's data-focused personal loans ratings and review methodology. Our experts vetted 112 lenders and analyzed over 4,600 data points to find the best lenders across a variety of categories. A "Promoted for" pick is a partner suited for a category, but it is not a recommendation or indication it is the best. Promoted products are based on a commercial advertising arrangement. Keep in mind that our picks may not always be the best for you – it's important to compare for yourself to find a product that works for you.
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.
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.
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
12.99% – 39.99%
Term
9 - 36 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.
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 The Foundation. 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.
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.
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
600
Fees
Non-sufficient funds fee of $20 to $50
Turnaround time
Within 24 hours
Serviced provinces
BC, AB, SK, MB, ON, NB, NS, PE, NL, YT, NT, NU
Best-Rated
Mogo made it to the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.
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
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.
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 provinces
Winner: Best-in-Class
easyfinancial was awarded the Winner award in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024.
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 interest rates
May charge an administration fee
You must show income history for six months (if you receive employment income)
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.
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.
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.
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.
Company
Overview
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
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-profit
Overview
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.
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 consolidation
After consolidation
Balance
$11,000.00
$11,000.00
Interest rate
20%
9%
Year(s) to pay off
3
3
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:
Fill out your application. You’ll need to supply your personal and banking info through an online or in-person application.
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).
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:
If you have more than one credit card, you will have to keep track of the debts you have on each one and pay off a number of different balances each month, which can be frustrating and overwhelming. Many credit cards also charge noticeably high APRs, meaning you pay unnecessarily high interest on your debt.
If you have multiple personal loans, you can think about bringing them under a single loan. Depending on your existing financial situation and credit score, you may qualify for a more competitive interest rate on a debt consolidation loan.
You can consolidate your student loans into one single loan. If you have debt from university or college, you also might want to look into refinancing – it often comes with a consolidation option.
The discounts and rewards can be great from retailer cards. However, if you have too many, it can be difficult to keep track of what you owe and which payments to prioritize.
Reduce the amount you owe on multiple lines of credit by paying them off with a fixed-term loan.
If you owe taxes to the CRA from previous years or can’t afford to pay for this year, you can consider taking out a personal loan to pay them off instead of taking on an installment agreement. Loans tend to have more flexible terms than installment agreements and if you have good credit, interest could be a lot more affordable.
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.
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.
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
Interest rates for debt consolidation in Alberta typically run between 6.99% - 32%. However, some may reach as high as 46.96% if you have bad credit. 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.
Not necessarily. You should contact your lender to find out why your application was turned down. If it was due to bad credit, you can look at applying for a bad credit loan in Alberta. You may also be able to qualify for an OPD.
All types of unsecured debt (like credit cards and personal loans) are eligible for debt consolidation. You won't be able to consolidate money owed for some forms of secured debt like your mortgage, back taxes or government-issued student loans.
You should only consolidate debt if you're in a position to pay back your loans. Your main purpose in consolidating should be to get all your payments into one place and to lower your interest rates. If you don't have enough money to afford your payments, then you might look at other options like debt settlement.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University.
Compare the best debt relief companies in Canada to help you get your finances back on track.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
