The debt consolidation loans available through BorrowNow.ca roll several balances into a single loan with one fixed monthly payment, from $500 up to $50,000. By law no licensed lender can charge more than 35% APR, and consolidation wins whenever your new rate lands below the blended rate you pay now.
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One payment instead of many · up to $50,000 · 35% APR is the legal maximum any lender can charge · income verified by secure IBV, no credit-score impact to apply.
By Tony Freanisco · Published July 27, 2026 · Last updated July 27, 2026
Debt consolidation loans are installment loans used to pay off several existing balances at once: credit cards, small loans, overdue bills. Afterward you owe one lender, one fixed monthly payment, with one end date. Nothing about the debt is forgiven or reduced by magic; what changes is the structure and, when it works, the interest rate.
That last part is the whole test. Consolidation saves money only when the new loan’s APR is lower than the blended rate of what it replaces. Cards commonly charge 19.99% to 22.99%; if your consolidation offer prices below your blend, you win twice, on rate and on structure. If the offer prices above it, consolidation buys convenience, not savings, and you should know which one you are buying.
Here is the worst-case view, using the legal ceiling. Consolidating $10,000 over 36 months at the absolute 35% APR maximum means payments of roughly $452 and about $6,282 of interest. The same $10,000 left on cards at 20.99%, paid at a typical minimum-payment pace, stretches past a decade and costs more in interest while never showing you an end date. A fixed 3-year loan beats drifting revolving debt even near the cap, and your actual offer can only be at or below that cap, never above it.
| Consolidating | Term | Payment at the 35% legal max | Worst-case total interest |
|---|---|---|---|
| $5,000 | 36 months | ~$226 | ~$3,141 |
| $10,000 | 36 months | ~$452 | ~$6,282 |
| $20,000 | 60 months | ~$710 | ~$22,576 |
These are legal-maximum figures, not offers; your disclosed rate can only be equal or lower, and a lower rate or shorter term shrinks every number. See our cost of borrowing guide for how to read the disclosure line by line.
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Consolidation amounts above the small-dollar tier need proportionally stronger income, because the one payment replaces several. If the numbers are tight, consolidating part of the debt is a legitimate move; our guide to borrowing with bad credit covers how income carries the decision.
Debt consolidation loans fix structure and rate; they do not fix spending that outruns income, and they are not debt forgiveness. If the underlying budget is underwater, a consolidation loan delays the reckoning and adds interest. Be equally careful with anyone marketing “government debt relief programs” for a fee: no such federal program erases consumer debt, and the phrase is a reliable scam marker. The regulated alternatives for unmanageable debt, credit counselling and consumer proposals, are explained neutrally by the Financial Consumer Agency of Canada. Consolidate to simplify and to save; restructure formally when there is nothing left to save.
From $500 up to $50,000 through BorrowNow.ca, sized to your verified income. The amount must realistically cover the balances you want to fold in, and the single payment must fit your pay.
Your rate is disclosed in writing before you sign, and by law it cannot exceed 35% APR. Consolidation makes financial sense when that disclosed rate is below the blended rate of the debts you are replacing.
Applying through BorrowNow.ca uses no hard inquiry. Over time, replacing maxed revolving balances with one installment loan often helps utilization, while any missed payment on the new loan hurts, exactly as it would anywhere.
You can apply and be considered: decisions weigh your verified employment income heavily. With damaged credit the offer may be smaller or price higher, which makes the compare-to-your-blend test even more important before signing.
No. A consolidation loan repays your debts in full through one new loan at disclosed interest. A consumer proposal is a formal, regulated settlement for unmanageable debt that reduces what you repay and affects your credit differently. Different problems, different tools.
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Disclaimer: BorrowNow.ca is a loan-matching service, not a lender, and does not guarantee approval, amounts, or rates. All figures above show the 35% APR federal legal maximum, not an offer; your rate and terms are set by licensed Canadian lenders and disclosed in writing before you sign. Consolidation is not debt forgiveness. Borrow only what you can repay.
