With interest rates still at record low numbers compared to historical averages, debt consolidation loans or refinances are becoming more and more of a viable solution. Debt can be anything from student loans, credit card debts, business loans, car payments.
Here at The Mortgage Specialist, we’ve worked with thousands of homeowners looking to—intelligently—refinance their mortgage in order to consolidate their consumer debt.
When executed well, alongside a short– and long-term plan, debt consolidation loans can help you reduce your overall debt burden while freeing up cash flow.
We here at The Mortgage Specialist believe that our work doesn’t end with debt consolidation loans—we also want to help you stay on track to pay off your mortgage quickly through smart mortgage management.
Over the course of time, things begin to add up and these debts may have become seemingly insurmountable that you are now seriously thinking about filing for bankruptcy.
This is the advice that most people will tell you to do. But, wait! Debt consolidation loans and home equity loans are something that you should look into before taking the drastic step of filing for bankruptcy.
A consolidation can possibly solve your debt problems and help you regain your financial footing without destroying your credit.
Identifying what a debt consolidation loan is;
Debt consolidation refers to the act of combining multiple debts together into one single financial obligation, with one single payment
1) Take out a large debt consolidation loan or home equity loan to pay off smaller loans.You can consolidate your car loan, your credit card debts, and any of your other debts, together. Use the money that you got to pay these off. And then you can concentrate on paying off the single debt, by dealing with just one interest rate, too.
2) If you do not qualify for a debt consolidation loan, or you do not own a home with enough equity, your other option would be to participate in a debt relief program.
This option used to be far more viable a few years back. Recently, there have been some official (and unofficial) policies that have tightened up the qualification process for refinancing, thus making it more difficult. It is important to discuss with your mortgage broker whether this option is reasonable for you.
If you need a smaller loan, then this is a workable option for you. There is no collateral required and more risk is on the lender. As the lenders have more risk on their plate, it has become more difficult to qualify for a personal loan as well, and not to mention, they charge a higher interest.
This method is what most people are being pushed into of late. Basically settling with your creditors can significantly reduce the total amount of your debt, and make your monthly payment more manageable. There are some significant considerations to make, such as the long term impact on your credit rating, and some of the fees that are attached to these types of settlement programs
Debt Management Plan, financial counselling. With this comes lower interest rates, consolidated monthly payments, your creditors are not allowed to call you anymore, they can’t charge you late fees, and also your credit score can be protected as well. The plan is usually set up so that you can pay off everything that you owe within a 5 year period.
Again, there are some things to consider even with a Debt Management Plan. Before you decide on a debt consolidation solution, you should do your homework. One of us at The Mortgage Specialist will be happy to sit down with you. We understand the high cost of living in the city of Vancouver, and we can work with you to review your solutions where you can pay off your high interest obligations by adding them to your low interest mortgage, thus relieving you of a lot of stress.
Call us today at 778-233-2377 to help you with your DEBT CONSOLIDATION or simply fill in your name and best email address and we will send you our best ideas and strategies for consolidating your debt.
What we want you to know is that debt consolidation, when it involves your mortgage, should be taken seriously. Debt consolidation loans don’t affect only your credit rating and history–but also the roof over your head.
We want to help get you to your financial goals, while steering you clear of unnecessary financial pitfalls.
Don’t go into debt consolidation with your eyes closed. You need to know a number of case-specific facts that may result from your consolidation—including changes to your credit rating, increases in your mortgage payment, penalties regarding your mortgage and timing-related issues.
Call us today for a case-specific analysis on the debt-consolidation strategy that is right for you and your family.
Let’s be honest, not many people can pay for their home in cash… Most people will need a mortgage to purchase real estate.
Our process starts with a 20-minute phone call. Often times, we can address 99% of your questions & concerns, and we can tell you how much of a mortgage you’d qualify for.
It might seem strange, but you might actually be able to save money by refinancing your mortgage… Depending on the rate environment and your contract, I can help you figure out if it makes financial sense for you to refinance. Even with the fees & penalties – you could save thousands.
If you are planning on renewing your mortgage with your current lender, you may be leaving money on the table. We can negotiate a better deal. You may also want a new mortgage product upon renewal, and we will show and guide you how to choose the mortgage that suits your future goals.
Do you want to use your mortgage to consolidate your debt to manage your credit cards, car loans, taxes, or any other high interest bills? When executed well, alongside a short – and long-term plan, debt consolidation loans can help you reduce your overall debt burden while freeing up cash flow.
The truth is that divorce is difficult and stressful enough on its own. And when living arrangements, mortgages and financial instability start to pile up, it becomes a disaster. Don’t go into your divorce or separation with your eyes closed… You should be prepared for every financial thing that your partner could throw your way.
In addition to our normal offerings, we have special programs for special situations. Learn more about our 10-Year Mortgage Rates, Mortgages For Heroes, & our Mortgage Adoption Process.