Sometimes, bills start to pile up, making it difficult to keep track of how much you owe and where your money goes. When that's the case, debt consolidation might be a practical option for regaining control of your finances.
Want to understand how converting your existing debt into a loan can ease your burden and let you focus on other priorities? Debt consolidation works by bringing multiple balances together as one single debt to pay off, with fixed monthly payments over a set period of time.
3 benefits of debt consolidation
1. Simplifying your finances
You can spare yourself the trouble of having to manage different rates and payment dates all the time. With only one monthly lump sum grouped into a single account, consolidation may help you stay on top of your payments.
2. Potentially saving on interest and fees
You may be eligible to bring multiple balances together as one debt. Lower payments may also help improve cash flow and allow you to budget for other expenses.
3. Improving your cash flow
With potentially more time and smaller monthly payments to pay off your debt, you might free up your budget a little bit.
Options for consolidating your debt
We understand every circumstance is different. As a CIBC client, you have two ways of consolidating your debt, depending on your situation.
The first option is for when you're experiencing financial hardship or having trouble making your minimum payments on your CIBC products. You may be able to convert your existing unsecured CIBC debts into a loan that may help manage your short-term cash flow needs and allow you to focus on other priorities.
This option is available for Canadian residents and clients who have a proven source of income and a positive cash flow. It's important that you contact us to review your accounts and determine whether you qualify for a consolidation loan. We help our clients overcome financial troubles every day with solutions that fit their needs.
Schedule a call with our credit counsellors.
If you're up to date with your payments and want to combine your CIBC and non-CIBC debts into a loan, the second option is to consider debt consolidation. It could help you manage and stay on top of what might otherwise be a difficult situation.
Besides consolidating your debt, it’s still vital to rethink your budget, have a deeper understanding of your personal finances and use different strategies to get your finances in order.
All applications are subject to credit approval.