Multiple debts. Multiple payments. Multiple interest rates.
There's a smarter way — and it starts with one loan, one payment, and one lender matched to you.
If you're juggling multiple debts — a credit card here, a buy-now-pay-later balance there, maybe a payday loan you regret — you already know the mental load of tracking different payment dates, interest rates, and minimum amounts. What you might not realize is how much extra you're paying just because those debts are spread across multiple high-interest accounts.
Debt consolidation is one of the most financially powerful moves a Canadian can make. The concept is simple: you take out a single personal loan at a lower interest rate and use it to pay off all your existing debts. Now you have one payment, one rate, and a clear finish line.
The challenge? Finding the right lender at the right rate — especially if your credit has taken a hit from carrying high balances. That's exactly what Smarter Loans was built for. Our technology matches your profile against 50+ Canadian lenders in real time, routing your application to those most likely to approve you at the best available rate.
📊 What Debt Consolidation Actually Does to Your Payments
A typical Canadian carrying $18,000 across three accounts — before and after consolidation.
What Is Debt Consolidation?
Debt consolidation means combining multiple debts into a single loan — typically a personal loan — with one monthly payment and a lower overall interest rate than the debts you're replacing.
Rather than paying 19.99% on a Visa, 24.99% on a Mastercard, and 29.99% on a store credit card, you replace all three with a personal loan at — depending on your credit profile — somewhere between 9.99% and 19.99%. The math almost always works out in your favour.
What Debts Can You Consolidate?
- Credit card balances (the most common and highest-impact)
- Lines of credit
- Payday loans
- Buy-now-pay-later (BNPL) balances
- Store financing or retail credit accounts
- Other personal loans at higher rates
- Medical or dental payment plans
How Much Could You Save? Run the Numbers
Enter your current debts below. We'll calculate your current total monthly payments and interest cost, then show you what a consolidation loan could look like.
💸 Debt Consolidation Savings Calculator
Enter up to 3 debts. We'll show your savings potential instantly.
* Current minimum payment estimated at 2% of balance or $10 minimum. Savings compared to minimum-payment-only repayment on current debts. Actual rates depend on your credit profile. The consolidation rate shown is illustrative — apply through Smarter Loans to see your real rate.
Seen enough numbers to know it makes sense?
Apply once through Smarter Loans. Our technology matches you to the best consolidation loan from 50+ lenders — based on your actual profile, not just your credit score.
Find My Consolidation Loan →Is Debt Consolidation Right for You?
Consolidation works best when specific conditions are met. Check how many apply to your situation:
✅ Consolidation Eligibility Checker
Check every box that applies to you. We'll give you an honest assessment.
How to Get a Debt Consolidation Loan Through Smarter Loans
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1List Your Debts Before applying, write down every debt: the lender, balance, and interest rate. This tells you the exact loan amount you need and the rate you need to beat. Use the calculator above if you haven't already.
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2Apply Once at Smarter Loans Visit apply.smarter.loans and submit one application — takes about 3 minutes. Include your income, employment status, and the consolidation amount you need.
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3Our Technology Finds Your Best Match Smarter Loans' proprietary platform evaluates your profile against the real underwriting criteria of 50+ lenders — not generic score thresholds. We identify lenders most likely to approve a consolidation loan at the best available rate for your situation.
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4Review Real Offers You'll see actual loan offers with transparent rates and terms. Compare them. Choose the one that saves you the most and fits your monthly budget. No obligation, no guesswork.
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5Pay Off Your Debts & Simplify Once funded — often within 24–48 hours — use the loan to pay off every account you're consolidating. Cancel or reduce the limits on paid-off cards. You now have one payment, one rate, and a clear debt-free date.
Alternatives to a Debt Consolidation Loan
A personal loan isn't the only consolidation tool — though for most Canadians it's the most accessible and straightforward. Here's how the options compare:
| Option | Typical Rate | Requires Good Credit? | Best For |
|---|---|---|---|
| Personal Loan (via Smarter Loans) | 9.99% – 34.99% | Fair credit OK (560+) | Most Canadians — fast, accessible, flexible |
| Balance Transfer Credit Card | 0% – 3% promo (then 19.99%+) | Good credit required | Borrowers with strong credit who can repay within the promo period |
| Home Equity Loan / HELOC | 5% – 9% | Secured — more accessible | Homeowners with equity — lower rates but home at risk |
| Debt Management Program | 0% – reduced rates | No credit needed | Severe debt distress — impacts credit, limited lender options |
| Consumer Proposal | Negotiated reduction | No credit needed | Last resort before bankruptcy — major credit impact |
How Debt Consolidation Affects Your Credit Score
Done correctly, debt consolidation typically improves your credit score over time. Here's why:
- Lower credit utilization: Paying off revolving balances (credit cards) reduces your utilization ratio — one of the biggest factors in your score. Lower utilization = higher score.
- On-time payments: A single monthly loan payment is easier to track and pay on time than multiple minimums. Payment history is the largest factor in your credit score.
- Reduced "revolving debt": Credit bureaus treat instalment debt (a personal loan) more favourably than maxed-out revolving credit.
The temporary dip: applying for a new loan involves a hard inquiry, which typically drops your score by 5–10 points for a short period. This is almost always recovered within 3–6 months of on-time payments — and is far outweighed by the long-term improvement from lower utilization.
To learn more about improving your score before applying, see: Personal Loans vs. Credit Cards: Which Is Right for You in 2026?
One application. One payment. One step closer to debt-free.
Smarter Loans uses technology to match you to the best consolidation loan from 50+ Canadian lenders — including specialist lenders who work with fair credit. Free to apply, no obligation to accept any offer.
Start My Consolidation →Frequently Asked Questions
The Bottom Line
Debt consolidation is one of the most effective financial tools available to Canadians carrying high-interest debt — and a personal loan is the most accessible way to do it. By replacing multiple high-rate balances with a single, lower-rate loan, you reduce your monthly payments, cut your total interest cost, and give yourself a clear path to being debt-free.
The key is finding the right lender at the right rate. That's where most Canadians get stuck — applying to multiple banks, collecting hard inquiries, and still not finding the best offer.
Smarter Loans solves this with technology that matches your profile to 50+ verified Canadian lenders in real time, surfacing the best consolidation loan for your specific situation — whether your credit is excellent, fair, or somewhere in between.
Ready to turn multiple payments into one manageable loan?
Apply free in 3 minutes. Get matched to Canada's best consolidation lenders. No obligation to accept any offer — but you might be surprised what's available to you.
Apply Free at Smarter Loans →
