Debt Consolidation is a sound strategy adopted by millions of people. Many Canadians and people in BC are taking advantage of refinancing some of the equity in their mortgage to reduce their credit card debt. Why pay high interest rates on your bank’s credit card debt when you can add that debt to your mortgage and pay a much lower interest rate! One important part of a strategy is knowing “good debt” from “bad debt”.
A debt consolidation loan is a single loan that allows you to repay your debts to your other creditors at once with the goal of consolidating with a lower interest loan. Simply put, debt consolidation involves paying off smaller loans like car payments, some credit cards, retail cards, and maybe some personal loans, with a larger loan at a lower interest rate.
By consolidating your debt, you can save hundreds of dollars a month, and sometimes the amount saved can rise to even more than a thousand dollars. Therefore, using the money in your home to consolidate all of your debt is a winning solution. However, knowing the pros and cons before consolidating your debt is vital to your financial health.
A well-planned mortgage can help you turn those bad debts into good debts and get them out of the way.
- Consolidate high interest rate credit cards to one lower rate.
- Save money and increase cash flow.
- Reduces your monthly payments
- Simplify your finances
- Reduce your interest rate
- Improve your credit score
- Repair Credit history
- Reduce stress knowing that your financial situation is now manageable.
For a conversation about refinancing your debt or review your options call Mortgage broker – Mr. Lakhvinder Gill in Surrey BC.
It’s time to beat the banks!
For Debt Consolidation contact Mortgage Consultant – Lakhvinder Gill or call – (604) 725-6734
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