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Consolidate Your Debts Using the Equity in Your Home

Posted by Ontario on October 27, 2015 in Business, Finance, oakville ontario with No Comments


consolidate debts Toronto OntarioWhat is Debt Consolidation?

If you’re like many Canadians, you probably have a variety of outstanding loans, including your mortgage, car loan, and credit card payments. While most Canadians may have a few other outstanding debts to pay, unsecured loans – like store and credit cards- come attached with a high interest rate. The higher the interest rate, the harder it is to pay off such debt. This is why debt consolidation programs are available – to help borrowers to pay off their high interest loans much quicker and easier.

Debt consolidation involves combining all your outstanding loans into one loan amount. This is done usually at a much lower interest rate, especially when compared to credit or store card loans. Not only is this debt easier to pay off thanks to the lower interest rate, it’s also easier to manage, since you’ve only got one monthly payment as opposed to several. When you consolidate debts Toronto Ontario, you can realistically pay off your debt much sooner, providing you with financial freedom sooner rather than later.  You will also save much more money in interest payments, and probably have additional cash flow each month – depending on how aggressive you want to be with repayment.

How Can You Benefit from Debt Consolidation?

The benefits of debt consolidation are quite obvious. First of all, this rolled-into-one loan amount will typically come attached with a much lower interest rate compared to the other debt you may have been carrying since it is tied to your home. Credit cards in particular can charge upwards of 20%-30% in interest, making your monthly payment predominantly interest instead of principle, and you end up paying interest on the interest if you can’t pay it off each month. Another advantage for consumers when they use the equity in their homes to consolidate debts is the fact that they only have one loan to worry about, instead of many separate payments all due at different times. This makes it easier to manage and budget each month, and generally improves cash flow with the lower payment.

Debt Consolidation OntarioHow to Get Started in a Debt Consolidation Program

If you’re finding it difficult to manage all your outstanding loan payments, you might want to consider taking advantage of a debt consolidation program. With today’s low home loan interest rates, the difference between a secured home equity loan and unsecured credit card debt can be 20% or higher. An experienced mortgage broker can help you get started with this program, and assist you in getting all your finances in order.

The professionals at Mortgage Medics are seasoned in the world of consolidating debts, and they’ll be sure to help you too! Visit their website today at MortgageMedics.ca or call (905) 847-6611 to schedule a free, no obligation consultation!  They can also arrange a second mortgage, home line of credit or home equity loan so you can consolidate debts, make a big purchase, finance education, travel, etc.  Put your home to work for you and use the equity to pay down high interest debt and buy the things you need now.

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