02/15/2023
Typically there are two main reasons that you may want to consider debt consolidation:
✅Lower high-interest credit debt
Debt consolidation allows you to reduce high-interest credit debt (like a credit card of 19.99%) by rolling it into a lower-interest rate loan/product.
✅Simplified debt payments
When you have multiple sources of credit, it can be difficult to keep track of all of your payments when they have different amounts due on different days. Debt consolidation allows you to roll all of these sources of credit into one easy payment.
So, how does this work?
To consolidate debt with a mortgage, you will need to refinance your current mortgage, take out the equity you have built up, and then use it to pay back the loans/debt that you wish to consolidate.
It’s important to note that there is a limit to the amount of funds you can access from your mortgage. The maximum amount you can access is 80% of the appraised value of your home minus the balance remaining on your mortgage.
Benefits of Debt Consolidation
Now that you know what debt consolidation is and how it works, let's take a look at the benefits that it can provide.
✅Lowers interest rates for all your debts: Lower interest rates mean lower monthly payments. Who doesn't want that?
✅Frees up cash flow: The lower monthly payments brought on from debt consolidation will help free up your cash flow.
✅Improved credit score: Debt consolidation allows you to pay off loans faster, which benefits your overall credit score.
✅Simplified payments: When you have multiple loans/debts, keeping track of all the payments can be difficult. Debt consolidation makes payments easier by rolling them into a single payment.
Give us a call today to explore debt consolidation options.
Goldie Kalra
6478879014
