Consolidate Your Debt and Save

Use your home equity to reduce your credit card debt.

In the current financial landscape, a growing number of Canadians are discovering a smart way to manage their finances by tapping into the equity of their homes. They’re refinancing their mortgages to roll their high-interest credit card debt into one lower-interest obligation. This clever strategy takes advantage of the vast difference in interest rates between mortgages and credit cards. It’s all about distinguishing between “good debt” and “bad debt.” By restructuring their mortgages, these Canadians are effectively converting their burdensome, high-interest debts into more manageable, lower-cost commitments.

Expert test matters

If you’d like to have a conversation about refinancing your debt, give me a call today to review your options. It’s time to beat the banks!

YOUR GUIDE TO CONSOLIDATE YOUR DEBT AND SAVE

Debt consolidation involves combining multiple debts into a single loan or payment plan. The aim is to secure a lower overall interest rate or more manageable monthly payments, making it easier to reduce your debt over time.

By consolidating your debts into one loan with a lower interest rate, you reduce the amount of interest you pay over the life of the loan. This can significantly lower your monthly payments and the total cost of paying off your debts.

You can typically consolidate various types of debt, including credit card balances, personal loans, medical bills, and sometimes even student loans. It's essential to check with the debt consolidation provider about which debts are eligible.

Debt consolidation is best for individuals with multiple debts carrying high interest rates. It's important to have a steady income to keep up with the new payment plan. Consulting with a financial advisor can help you determine if it's the right choice for your situation.

Before consolidating, evaluate the fees involved, any potential impact on your credit score, and whether the new interest rate significantly benefits you compared to your current rates. Also, consider the loan term, as extending the repayment period too much could mean paying more in interest overall, despite lower monthly payments.