A debt consolidation loan is a loan that allows you to consolidate many other debts into one. For example, if you have several high interest credit cards, you may be able to eliminate your credit card debt completely by getting a debt consolidation loan to pay off the credit cards, so that you only have one payment each month instead of three or four.
Finding yourself in financial debt can be a daunting experience, but finding a way out of debt doesn’t have to be that hard.
Reducing your personal debt can be difficult but with the right help, it is definitely within your reach no matter how much debt you have accumulated.
We can help you lower your monthly payments, reduce your interest rates and late fees, avoid bankruptcy and rebuild your credit through the use of a debt consolidation mortgage loan.
Debt Consolidation – Reduce Your Monthly Payments and Save Money
Debt consolidation is the process to consolidate many debts with higher interest rate into one single loan or mortgage with a lower interest rate. For example, if you have three credit cards with interest rates up to 28%, you may be able to eliminate your credit card debt by getting a debt consolidation loan to pay off the credit cards, so that you only have one payment each month instead of three.
Consolidating debt reduces payments and interest charges
The advantage to debt consolidation is that it not only makes paying debt more manageable, it reduces the amount of interest you would have paid if you did not consolidate your debt. This is done by securing a better interest rate on your mortgage, an option that should always be considered if mortgage interest rates have dropped considerably since obtaining a previous mortgage.
What are the advantages of debt consolidation mortgage?
Your mortgage loan may have a lower interest rate than the rate you are paying on credit cards, personal or business loans. Consolidating them into one single mortgage should reduce your interest payments and help you eliminate your credit card debt and other personal loans. With the lower interest rates and/or extended amortization a mortgage may offer, you will be able to reduce your total monthly payments. You replace many payments each month with only one payment, which should make your monthly household budgeting easier.
How to qualify for a mortgage to consolidate debts?
To qualify for a mortgage, you need to have the following:
- You own a home that can be secured to borrow more money;
- You have a number of loans that are difficult to manage;
- You have a stable job that can support the mortgage payments.
We are here to help you secure the best possible debt consolidation loan. As a mortgage broker, it is my job to get you the loan on the best terms and for lowest payments possible. Contact me today or call at 416-402-7264 for a free consultation!