CONSOLIDATE YOUR DEBT
With the growing cost of living, rising prices of goods, higher interest rates, and extra unplanned expenses - it’s no surprise that many Canadians are feeling the pressure of mounting debt.
While you may be working hard to budget and lower your personal expenses, another option for reducing debt (and the amount of interest that you pay on it), is to complete a consolidation with a licensed mortgage broker, using the equity in your home.
You can free up your cash flow and finally get your debt under
control by consolidating your payments into one loan. Once
these debts are closed, you will only have one monthly payment at
a lower interest rate than a typical credit card or unsecured loan.
Could debt consolidation be for you?
It may be time to see if this could be the financial route for you if;
· You own a home with more than 20% equity available
· You have stable and consistent income
· You have a credit score of 600 or higher
Using home equity to pay down debt
If your mortgage is coming up for renewal in the next 6 months, now is a great time to speak to a trusted and certified mortgage broker to see if consolidating your debts into a traditional mortgage is available.
If your mortgage isn't up for renewal, but you are feeling the pressure of debt burdens, don’t stress, I am here to help. Obtaining a Home Equity Line of Credit (HELOC) can be a great way to discharge overwhelming debts. The amount loaned is revolving, meaning you will only have to pay interest on the balance owing, and the remainder of your payments towards the HELOC will help to quickly pay down your balance.