Consolidating mortgage loans into one
In this case, a bank would usually lend you up to maximum black book value of your vehicle (the “black book” is a database of very conservative vehicle values.
These values will be much less than you could sell your vehicle for in the newspaper or on Craigslist).
By increasing your income you can pay off your debts faster, and by cutting expenses you can save money to pay off debts faster.
If a relative lends you money, but then you lose your job or get hurt and are unable to pay them back, that may sour your relationship with them.
If your relative can’t afford to forgive the loan to save their relationship with you, then this could forever cast a shadow over your relationship with them.
If you have any other valuable asset like a boat, motorcycle, RV, mobile home, non-RRSP mutual funds or piece of property, your bank may be able to use one of these assets as security as well.
One thing to be careful about with a debt consolidation loan is that many people in Canada try to obtain consolidated credit payments in order to resolve their financial problems and get out of debt.