How Do I Qualify for a Debt Consolidation Loan?
In order to qualify for a debt consolidation loan in the form of a home equity loan, you will need to demonstrate the following:
- Have stable employment with an adequate monthly income to repay your debt.
- An established credit history with a good credit score.
- An asset, such as a home, that you can use to secure your debt.
Second Mortgage Debt Consolidation
As a homeowner, you may want to consider taking out a second mortgage on your home. If you qualify for a second mortgage, you can use this money to pay off your other debts. This includes consumer debts such as:
- Credit card bills
- Utility bills such as gas and electric
- Cellphone bills
- Payday loans
- Car loans
If you struggle with paying your income taxes, a second mortgage can allow you to repay your debt to the CRA.