If you carry high interest credit cards, debt, car loans or other personal loans you know it can be difficult to pay off everything you owe.
You can have those post-holiday debts hanging over your head.
If you are a homeowner and has enough equity in your property, consolidating all of your debts and including it in your mortgage payment, it can be the right solution for you.
There are many benefits to consolidate debt, including the following:
- Much lower monthly interest rates for all your debts
- Lower monthly payments
- Comfort and convenience that means only one monthly payment instead of multiple payments on your credit cards and other loans
- Improve your credit score by reducing the amount you owe, and now you are able to timely deliver all your payments
Debt consolidation mortgage is not quick to fix and a complete financial review needs to be met with your mortgage broker. There may be costs to discontinue your current mortgage to include those higher interest payments on debt from a mortgage payment.
You may lower the current monthly payments, but now the debt will return over a longer period of time.
Will this really be financially beneficial?
Everything is reduced to mathematics, as total borrowing costs may be higher or lower than the one you are currently paying.
Crunching all numbers is the only way to know for sure.
There is also another serious danger that needs to be considered – whether you are sufficiently disciplined to keep the budget going and living in your current income, or will try to re-use these credit cards and end up in exactly the same situation in the near future ?
It can become a vicious circle if you do not learn to live within your budget. You do not want to end up in the same place in a year.
On the other hand, if you are disciplined and able to live within the budget, the benefits of an increased monthly cash flow can significantly improve your financial situation.
These additional funds can be used to invest in your retirement with RRSP contributions and have a vital financial surplus for life surprises.
There are several possible options to consider consolidating the mortgage debt, including the collapse of the current mortgage to incur debt, the second mortgage for consolidation or the domestic credit line.
A small unsecured personal loan can be enough. In extreme situations, it may be necessary to sell your home to eliminate all debts.
You may have heard about "free" debt consolidation programs, where the company will negotiate a debt reduction on your behalf and arrange a one-time monthly payment.
With very careful consideration this may be the last option, but be aware that this type of solution will destroy your credit ratings for a long time.
Get all the facts before entering this type of deal.
Now, all that remains is to accurately figure out which solution is best for you to delete all these high interest payments.
If you want a complete, confidential assessment and discussion of all possible options, please call 1-888-561-2679 or email address [email protected]