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Wipe Out Your Credit Card Debt

Posted by Ontario on July 23, 2015 in Business, Finance with No Comments

Mortgage Refinancing Toronto FamilyMany Canadians have a debt for a number of different reasons. Some are still paying off their student loans, some have car payments to make, some financed a home renovation, made a large purchase, and so forth. Among the most common type of debt in this country is credit card debt. Unfortunately, this type of debt is often the most difficult to eliminate, because the interest rates that often accompany these cards are typically extremely high. In fact, they are commonly over 18%, and as high as 30% for some store cards, making it tough to pay down this debt once it starts to accumulate.

Each month, whatever amount is still owed on your credit card will be subject to this high interest rate. Unpaid amounts also start to accumulate interest, making it more difficult to pay off. The higher the debt outstanding, the more you will be paying in interest charges, which is essentially like throwing your money away. If you don’t get a handle on your credit card debt, you may find it nearly impossible to end the debt cycle.

Make Use of Credit Card Debt Consolidation

While paying off mounting credit card debt may be extremely challenging, there are ways to help the average homeowner to pay down such debt, including debt consolidation.

Debt consolidation basically involves using the equity that you have built up in your home to pay off your debts, – including high interest ones like credit card debt – and consolidate them into one loan payment.

Secured home loans that are based on home equity are considered by lenders to be low risk. By being accepted for a Canadian home equity loan, you can use this freed up capital to pay off your high-interest credit cards and other debts.

Consolidating your debt will allow you to free up cash, which you can use to pay off all of your existing loans. You could save as much as 22% or more, resulting in thousands of dollars in interest savings per year. Using this low interest rate to pay off all your debt means you’ll only need to worry about making one loan payment per month, at a much lower rate of interest.  This will help you will cash flow so and can lower your monthly payments.  This also translates into paying off debt much quicker and sooner, as more of your money is going towards principal rather than interest.

Credit Card Debt ConsolidationOptions for Credit Card Debt Consolidation

If you think debt consolidation is something that would benefit you, call the experts in such financial programs, like Claire Drage from Mortgage Medics, show you your options.  You could get a home equity line of credit – which is a set amount but you can borrow and pay back as you need it.  Another option is a home equity loan, which gives you a lump sum that you can use to pay credit cards, make a large purchase, fund an education or home improvement project – whatever you need it for.

Claire and her award winning team can help you lower your monthly payments, and save you money on interest payments. She’ll help you get a great rate on second mortgages, secured lines of credit, and more! Contact MortgageMedics.ca today to discuss all your options when it comes to eliminating your debt, and saving thousands of dollars in the long run!

Call today at (905) 847-6611, A Mortgage Medic is standing by!


Use Home Equity to Pay Down Bills

Posted by samanthas on February 28, 2012 in Home Living Tips with No Comments

Many homeowners struggle with great amountsof debt as credit cards, medical bills and other loans loom dauntingly, threatening to become overwhelming. The equity in your home can be a good way to save you from this predicament and consolidate all your liabilities into one loan. Equity can be explained as the difference between the market value of your home and the unpaid mortgage balance. With a help of a professional, it can save the day and get you on the right track.

Managing finances is often troublesome when you have many different liabilities each month – credit cards, tuition and medical bills, car loans etc. It’s easy to miss the payment date or accidentally pay the incorrect amount. Properly utilizing home equity is a great way to leverage debt – it allows you to pay off all your bills with one payment, leaving you with one balance and one deadline. It’s much easier to manage one bill instead of many, plus a secured home loan generally comes with a much lower interest rate.

You have a couple of options once you decide to use home equity to pay your bills – Home equity line of credit (HELOC) or Home equity loan (HEL). With HELOC, once you have been approved for and granted a line of credit, it is possible to draw funds whenever you need money, (up to a predetermined limit). It can be accessed with a credit card, checkbook or a debit card. Typically, the interest rate is adjustable and lower than many other loans and types of credit lines. This option is best when you need to make paymenys over a time period, for example buying a car or paying tuition, or when you don’t want to have the whole amount but still have access to funds as you need them.

When you decide to go with a home equity loan, you are basically getting a second mortage using your home equity. This is the way to go when you need a lump sum of money, to pay for a second home, a vacation, or do home renovations, for instance. It’s a great opportunity to consolidate debts and have a fixed monthly payment that you pay off over a pre-determined time period, all this with a lower interest rate.

Refinancing your home to reduce monthly bills and payments can be referred to as good debt, because you save money with a lower interest rate and have less hassle with managing different loans. Apply for a Toronto home equity loan through Mortgage Medics and get your finances in order.