Debt Consolidation

You Can Consolidate all Your Debts into one Easy Monthly Payment, Improve Your Credit and Increase Your Cash Flow by as much as 75%!

Credit is a very important aspect of our daily lives. So many things are dependent upon it. Using the equity acquired in your home is a Smart and Effective way to Pay Off the high interest rate credit cards, loans, and consolidating your debt.

What is Debt Consolidation (Refinancing)?

Simply; it is when a home owner uses the accumulated equity in their home to pay off other debts. This increases their current mortgage or places a mortgage on a home that is currently free of financing.

The interest rate on the new mortgage is often much lower than the interest rate on other debts such as credit cards, personal loans, car payments and lines of credit. The benefit to the homeowner is three fold. First, the homeowner now only has one payment to worry about. Secondly, the homeowner benefits from an immediate and continued future improvement in their credit. Thirdly, the homeowner benefits from and immediate improvment in cash flowwhich can be used to paydown the new mortgage or save for retirement, take a vacation, put children through school or any number of creative ways that are beneficial to the homeowner.

How Debt Consolidation Works.

Let’s say you, the homeowner, owns a house worth $330,000.00 and has a mortgage on the house of $200,000.00. Equity is the difference between what the home is worth and the amount Mr. Homeowner has owing on it. In this case we will use the example of $130,000.00 worth of equity in his home.

Let’s say you the homeowner has $56,000.00 in high interest debt such as credit cards and loans. Since high interest debt is one of the major contributors to bankruptcies in Canada, our team would do the research and determine a plan of action. In this situation, obtaining a new mortgage to include all the high interest rate debts is the answer.

You the homeowner would pay off the current $56,000.00 in high interest debt all in one shot using the equity in your home. This would increase your current mortgage balance from $200,000 to $256,000, this would now lower total monthly payments and saving money that would otherwise be paid to credit card and loan companies, leaving more money in your pocket every single moth.