Welker & Associates Inc.

Debt Consolidation

Is a solution that consolidates multiple high interest debts into one payment and reduces interest costs.

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Over the years we have helped thousands of people solve their money problems. No matter how bad your situation, we can help.

    Over the years we have helped thousands of people solve their money problems. No matter how bad your situation, we can help.

    Debt consolidation will help you:

    Consolidate debts into one payment

    Reduce interest charges

    Lower monthly payments

    Avoid bankruptcy

    Protect your assets and income

    Get out of debt faster

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    Consider debt consolidation if you:

    Key considerations:

    Why choose Welker & Associates:

    Ready to consolidate your debts?

    Find out which type of debt consolidation is right for you.

    If you want to consolidate your debt, the first step is to arrange a free, no-obligation consultation with one of our licensed professionals who will take the time to answer all of your questions, review the various debt consolidation options and explain how each option may affect you and your family.

    • Is the person you are dealing with licensed?

    • What is the cost?

    • Are there any hidden charges or fees?

    • What is the interest rate?

    • Is the monthly payment affordable?

    • How long is the payment term?

    • Can the debt consolidation be paid-off early?

    • Are there any early payment penalties?

    • How does the debt consolidation affect your credit rating?

    The primary goal of any debt consolidation strategy is to reduce or eliminate interest charges, and thereby increase the portion of your payments that are applied toward principal. By increasing the amount of principal repaid as a percentage of each payment you make your outstanding balances will come down quickly and you will get out of debt faster.

    The two most common forms of debt consolidation are:

    • Debt consolidation loan

    • Consumer proposal

    Debt consolidation loans are a popular debt settlement strategy. However, the biggest challenge for most people considering this option is their ability to qualify for the loan. To qualify for a debt consolidation loan, you need:

    • An excellent credit rating

    • Sufficient income to make the loan payments

    • Assets to use as collateral (often required)

    • A co-signer (often required)

    In situations where a traditional debt consolidation loan is not feasible, either because of an inability to qualify or unaffordability of the repayment terms (payment amount and/or interest rate), a consumer proposal is a popular alternative.

    Like a debt consolidation loan, filing a consumer proposal consolidates debts into one monthly payment. However, consumer proposals have the following key advantages over debt consolidation loans:

    • No interest – a consumer proposal does not lower interest, it eliminates interest

    • Debt settlement – a consumer proposal settles your debts for pennies on the dollar

    • Affordability – consumer proposal payments are based on your budget

    • Qualification – no credit application is required to file a consumer proposal, and you can qualify for a consumer proposal regardless of your credit rating, assets or income without a co-signer

    The three biggest factors that affect the affordability of debt consolidation payments are:

    • Principal required – how much do you need to pay-off your debts?

    • Interest rate and fees – what is your total cost of borrowing?

    • Amortization period (term) of program – how many payments do you have to make?

    The key to any successful debt consolidation is a payment that is affordable and works with your budget. If you can’t afford your debt consolidation loan payment you will have to do one of the following:

    • Attempt to renegotiate the terms of your debt consolidation loan, ie: negotiate a lower interest rate and/or extend the amortization period

    • Consider other debt consolidation options (consumer proposal)

    For every insolvent debtor, consumer proposal payments will always be significantly lower than those required for a debt consolidation loan. This is because unlike debt consolidation loans that require you to repay the full amount owed plus interest, consumer proposals reduce (settle) the total amount owed and eliminate interest charges.

    While debt consolidation loans can be unsecured (no collateral), most lenders will require some form of security. The most common security is a house or other real estate property. When real estate is used as collateral for a debt consolidation loan it will involve one or more of the following:

    • Refinancing (increasing) existing first mortgage

    • Adding or increasing a Home Equity Line of Credit (HELOC)

    • Adding a second or third mortgage

    The way in which debt consolidation affects your credit rating depends on how you choose to consolidate your debt.

    If you consolidate your debt using a traditional debt consolidation loan it should not affect your credit rating. The only consequence of a debt consolidation loan is that it may impact your future borrowing capacity.

    If you consolidate your debt using a consumer proposal, it will result in an R7 (bad) credit rating that will remain on your credit report for a period of three years after your proposal is completed.

    Welker & Associates Inc. is a Licensed Insolvency Trustee and does not lend money.  However, debt consolidation loans are an option that we review with people as part of our assessment process, and where appropriate, we assist individuals to obtain debt consolidation loans by referring them to trusted third-party partners. 

    Your Credit Report

    If you’ve been struggling with money problems for a long time it can be difficult to know where to start. As time passes, debts go into collections and get transferred from one company to another making it hard to keep track of who you owe and how much. Fortunately, we can help. With your permission, Welker & Associates Inc. has the ability to view your TransUnion credit report and help you figure out what you owe. Understanding the full extent of your debt issues is a critical first step in determining the best way forward.


    Andrew P.

    We recently engaged the services of Welker & Associates. We were looking for someone who could help us with our bankruptcy reasonably and fairly. We interviewed several trustees, Welker.ca was by far the most knowledgeable, providing easy to understand scenarios of various options. Welker fit the bill, not only did they help us on time, they saved us lots of money by suggesting cheaper, quicker and more effective alternatives.

    Andrew P.

    Justin Cornelius Horton

    This company is amazing, friendly People, they work with you to put in a payment plan that works for you not them. I went with them and I can now say, I'm Debt Free. They contacted everyone I owed and got what I owed and they got it Cut in Half and then Some. I would Recommend this company and these people to anyone who is falling behind and is Accumulating debt.

    Justin Cornelius Horton

    Kyle Rose Munroe

    I had been overcome by stress for many months not knowing what to do. I wasn't even sure who to talk to about my growing dept. Thankfully I was told about Welker and associates. They came to meet me in Chatham even though they are out of London. The process was easy and the staff was very friendly and reassuring. Thanks to these wonferful people I can get back to my life. Thank you.

    Kyle Rose Munroe

    Kyle Rose Munroe

    I kept telling myself, I've got this, just need another couple weeks to get ahead. It just got me deeper and deeper in a dismal pit of debt. I wanted to give up. I had always thought that you have to try, always just try, so I made one call. That one call left me with something I had not felt in quite a while. Hope. Sue asked me some questions with a sensitivity that was greatly appreciated, she was able to access my situation and was straightforward with what could be done, how and the choices I had. She assured , steered and educated me on my journey to gain control not only on my financial future but my priceless sanity. I am moving forward, I have control, if I slip I can call for guidance.

    One of life's great pleasures is coming across someone who is so well suited to their job. Sue is one of these people I have had the pleasure of her experience and knowledge.

    S. Sharp

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