Best debt consolidation loans in Alberta

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 for

Quick Funding

Spring Financial Personal Loan

Best for

All Credit

Loans Canada Personal Loan

Best for

Easy Application

Mogo Personal Loan

Best debt consolidation loans in Alberta

1. Loans Canada

8.5 Great

Go to site Read review

$300 – $50,000
Loan amount

9.9% – 46.96%
APR

4 - 60 months
Term

• Our Take
• Pros + Cons
• Details

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.

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	9.9% – 46.96%
Term	4 - 60 months
Min. credit score	300
Fees	No application, origination or brokerage fees
Turnaround time	Receive funds in as little as 24 hours.
Serviced provinces	All of Canada

2. SkyCap Financial

8 Great

Go to site Read review

$500 – $10,000
Loan amount

12.99% – 39.99%
APR

9 - 36 months
Term

• Our Take
• Pros + Cons
• Details

SkyCap Financial is a private lender of unsecured personal loans for fair to good credit scores, which you can use to consolidate debt.

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

3. Spring Financial

8 Great

Go to site Read review

$500 – $35,000
Loan amount

9.99% – 46.99%
APR

6 - 60 months
Term

• Our Take
• Pros + Cons
• Details

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.

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	9.99% – 46.99%
Term	6 - 60 months
Min. credit score	550
Fees	No fees except $30 NSF fee
Turnaround time	Within 24 hours
Serviced provinces	All of Canada

4. LoanConnect

8.5 Great

Go to site Read review

$500 – $60,000
Loan amount

8.99% – 46.96%
APR

3 - 120 months
Term

• Our Take
• Pros + Cons
• Details

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.

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 – $60,000
APR	8.99% – 46.96%
Term	3 - 120 months
Min. credit score	300
Fees	No application, origination or brokerage fees
Turnaround time	Receive funds in as little as 24 hours.
Serviced provinces	All provinces

5. Mogo

8 Great

Go to site Read review

$500 – $35,000
Loan amount

9.9% – 46.96%
APR

6 - 60 months
Term

• Our Take
• Pros + Cons
• Details

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.

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

6. Fig

8 Great

Go to site Read review

$2,000 – $35,000
Loan amount

8.99% – 24.99%
APR

24 - 60 months
Term

• Our Take
• Pros + Cons
• Details

Fig is a new lender that launched in 2023, but it's owned by Fairstone, which has been in the lending business for nearly 100 years. Fig offers online debt consolidations in Alberta to those with good to excellent credit.

Why it's one of the best

• Enjoy an easy online process. Complete the whole process completely online, even without having to speak to a representative on the phone.
• Access competitive rates. Fig's rates start at 8.99%, which is competitive for a debt consolidation loan.
• Get repayment flexibility.Choose a weekly, bi-weekly or monthly loan payment schedule, and pay off the loan any time without paying any fees.

• Funding within a few business days
• BBB accredited
• Backed by a major lender

• Potentially lower rates than banks
• No in-person service
• Fair or bad credit not accepted
• Slower to send funds than other alternative lenders

Loan amount	$2,000 – $35,000
APR	8.99% – 24.99%
Term	24 - 60 months
Min. credit score	700
Fees	NSF fee: $45
Turnaround time	Up to 5 business days
Serviced provinces	Alberta, British Columbia, Manitoba, New Brunswick, Northwest Territories, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan

7. goPeer

8 Great

Go to site Read review

$1,000 – $35,000
Loan amount

8.99% – 34.99%
APR

36 or 60 months
Term

• Our Take
• Pros + Cons
• Details

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.

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 or 60 months
Min. credit score	700
Fees	Variable origination fee (included in APR) Unsuccessful payment fee of $50 No application or prepayment fees
Turnaround time	Response within 24 hours
Serviced provinces	All of Canada

8. Fairstone

8 Great

Read review

$500 – $60,000
Loan amount

19.99% – 34.99%
APR

6 - 120 months
Term

• Our Take
• Pros + Cons
• Details

Fairstone offers secured and unsecured debt consolidation loans. Apply online or visit one of hundreds of locations across Canada.

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 – $60,000
APR	19.99% – 34.99%
Term	6 - 120 months
Min. credit score	525

9. easyfinancial

8.5 Great

Finder Award Read review

$500 – $100,000
Loan amount

9.99% – 35%
APR

9 - 240 months
Term

• Our Take
• Pros + Cons
• Details

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.

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% – 35%
Term	9 - 240 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

10. Magical Credit

8 Great

Read review

$1,500 – $20,000
Loan amount

19.99% – 46.8%
APR

12 - 60 months
Term

• Our Take
• Pros + Cons
• Details

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.

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)

11. ATB

8 Great

Read review

Undisclosed
Loan amount

7.2% – 14.2%
APR

1 - 5 years
Term

• Our Take
• Pros + Cons
• Details

ATB is a Crown corporation serving residents of Alberta. It offers secured and unsecured personal loans to people with good to excellent credit.

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	Undisclosed
APR	7.2% – 14.2%
Term	1 - 5 years
Fees	Unknown
Turnaround time	Varies
Serviced provinces	Alberta

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.

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

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.

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.

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:

• Credit card debt

  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.

• Personal loans

  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.

• Student loans

  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.

• Retail credit cards

  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.

• Line of credit

  Reduce the amount you owe on multiple lines of credit by paying them off with a fixed-term loan.

• Tax debt

  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.

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

• What are the interest rates of debt consolidation loans in Alberta?

  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.

• My loan application was refused. Is this because I have bad credit?

  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.

• Are all types of debt eligible for consolidation in Alberta?

  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.

• Is debt consolidation in Alberta the right fit for me?

  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.

Written by

Leanne Escobal

Publisher

Leanne Escobal is a publisher for Finder. She has spent over 11 years working with financial products and 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. See full bio